Timken Shares Dip As Q2 Falls Short; FY23 Outlook Reduced Citing Current Order Trends
Portfolio Pulse from Lekha Gupta
The Timken Company (NYSE:TKR) shares fell by around 9% after it reported a Q2 FY23 earnings miss and reduced FY23 guidance. Revenue grew 10.3% Y/Y to $1.27 billion, missing the consensus of $1.29 billion. Adjusted EPS of $2.01 missed the consensus of $2.07. Timken returned $124.3 million to shareholders during the quarter, repurchasing around 1.3 million shares and increasing the quarterly dividend per share by 6% to $0.33. The company cut the FY23 adjusted EPS outlook to $6.90-$7.30 (from $7.00-$7.50 earlier) vs. consensus of $7.41 and revenue growth outlook to 8% (prior 9.5%) in total at the midpoint from 2022.
August 04, 2023 | 2:13 pm
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Timken's shares fell after it reported a Q2 FY23 earnings miss and reduced FY23 guidance. The company's revenue and adjusted EPS both missed consensus estimates. The company also cut its FY23 adjusted EPS outlook.
The company's shares fell due to the earnings miss and reduced guidance. The miss in revenue and adjusted EPS indicates that the company's performance was not as strong as expected, which could negatively impact investor sentiment. The reduction in the FY23 adjusted EPS outlook suggests that the company expects lower earnings in the future, which could further dampen investor sentiment.
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