The Timken Company (TKR) came in ahead of expectations in the most recent report, which is nothing new. Analysts keep raising forecasts, sending shares to a Zacks #1 Rank (Strong Buy) and keeping valuations attractive.

Company Description

Timken makes anti-friction bearings and power transmission products used in all modes of transportation, as well as the energy and industrial industries.

Great Quarterly Report

On Apr 26 Timken announced first-quarter results that showed a 37% jump in revenues, to $1.3 billion. Part of that was due to passing along higher costs, but they also said stronger demand was there.

Income from continuing operations came in at a record-high $112.7 million. That was 27 cents ahead of the Zacks Consensus estimate and marked the seventh consecutive earnings surprise.

Raising the Bar

Timken’s management said the results set the pace for a record breaking year and they raised their full-year outlook. Analysts followed suit, pushing the Zacks Consensus Estimate higher.

Forecasts for this year are averaging $4.10, up 47 cents on the earnings release. Next year’s projections jumped 37 cents and now average $4.63. Last year EPS came in at $2.95, so the expected growth rates are 39% and 13%.


After seeing such impressive results, optimism and growth rates you might expect to pay a premium to get into shares of TKR. But the stock is trading at a forward P/E of only 13 times and a PEG ratio at 0.9. Both showing a solid value.

The Chart

It is pretty easy to get lost in the daily noise of the stock market. But if you take a step back and look at the overall earnings trend for TKR you can see a pretty encouraging picture.

Estimates are showing consistent year over year growth and continue to climb significantly through each year.

The Timken Company - ticker TKR> <P ALIGN=

Bill Wilton is the Aggressive Growth Stock Strategist for He is also the Editor in charge of the Zacks Small Cap Trader service
TIMKEN CO (TKR): Free Stock Analysis Report
Zacks Investment Research