Today’s Hot Stock Under Review: The Timken Company (NYSE: TKR)

Alton Simmons

NORTH CANTON, Ohio, January 18, 2019 – Shares of The Timken Company (NYSE: TKR) showed the bullish trend with a higher momentum of 0.43% to $58.50. The company traded total volume of 7.778K shares as contrast to its average volume of 599.72K shares. The company has a market value of $4.47B and about 76.76M shares outstanding.

The Timken Company (NYSE: TKR) reported third-quarter 2019 sales of $914.0M, up 3.7 percent from the same period a year ago. The increase was primarily driven by the benefit of acquisitions, partially offset by lower organic revenue mainly in Mobile Industries, and unfavorable foreign currency translation.

In the third quarter, Timken posted net income of $64.20M or $0.84 per diluted share, versus net income of $71.60M or $0.91 per diluted share for the same period a year ago. The year-over-year decrease was primarily driven by pension and other retirement plan remeasurement charges and higher income tax expense, partially offset by improved overall operating performance.

Excluding special items, adjusted net income in the third quarter of 2019 was $87.40M or $1.14 per diluted share, a record for the third quarter, versus adjusted net income of $82.90M or $1.06 per diluted share for the same period in 2018. The year-over-year increase was driven by favorable price/mix, lower material and logistics costs and the benefit of acquisitions, partially offset by the impact of lower volume and related manufacturing utilization, and higher interest expense.

Cash from operations for the quarter was $144.90M, and free cash flow was $101.20M. During the quarter, the company returned $53.70M of capital to shareholders with the payment of its 389th consecutive quarterly dividend and the repurchase of approximately 750.0K shares. Also, among recent developments, the company announced an agreement to acquire BEKA Lubrication, a leading global supplier of automatic lubrication systems, which will strengthen Timken’s leadership position in this attractive product line.

The Company offered net profit margin of 8.10% while its gross profit margin was 30.00%. ROE was recorded as 18.50% while beta factor was 1.81. The stock, as of recent close, has shown the weekly downbeat performance of -0.36% which was maintained at 3.45% in this year.

Alton Simmons

Alton Simmons

I am Alton Simmons and I focus on breaking news stories and ensuring we (“Tech Business Week”) offer timely reporting on some of the most recent stories released through market wires about “Industrial Goods” sector. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for Tech Business Week specializing in quicker moving active shares with a short term view on investment opportunities and trends. Address: 1075 Ashton Lane Lampasas, TX 76550, USA Phone: (+1) 512-566-9658 Email: Altonsimmons@techbusinessweek.com