NYSE$TKR

The Timken Company · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Timken's third-quarter performance was impacted by supply chain disruptions and inflation, but the company achieved double-digit revenue growth due to strong market demand.

Timken reported third-quarter sales of $1.04 billion, a 16% increase from the previous year. Earnings per diluted share were $1.14 on a GAAP basis, and adjusted earnings per diluted share were $1.18. The company expects a robust demand environment and significant price realization in 2022.

  • Sales increased by 16 percent year-over-year to $1.04 billion.
  • GAAP earnings per diluted share were $1.14, while adjusted earnings per diluted share reached $1.18.
  • Net cash from operations totaled $105.8 million, with free cash flow at $62.7 million.
  • The company anticipates a continued strong demand environment and significant price realization in 2022.

Headline financials

Total Revenue

$1.04B

Previous: $895M+16.0%
EPS (adj)

$1.18

Previous: $1.13+4.4%
Free Cash Flow

$88.1M

Previous: $88.8M-0.8%
Net Income

$88.1M

Previous: $88.8M-0.8%
Operating Income

$124M

Previous: $119M+4.5%
Gross Profit

$268M

Previous: $264M+1.6%
Cash & Equivalents

$262M

Previous: $313M-16.4%
Total Assets

$5.15B

Previous: $4.91B+4.8%
Stock-Based Comp

$3.1M

Previous: $7.8M-60.3%

Revenue & EPS history

Timken · Revenue · Quarterly

$1.04B

Q3 2021+16%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Timken · $1.14B total across 2 segments · Q3 2023

  • Engineered Bearings
    $776M
  • Industrial Motion
    $367M

Forward guidance

Timken anticipates operating conditions in the fourth quarter to mirror those of the third quarter, where strong demand is largely offset by inflation and increased customer service costs. Looking ahead to 2022, the company expects robust demand to persist, with supply chain challenges continuing into the early part of the year. They plan to counteract these headwinds through significant price adjustments and operational improvements, positioning them to achieve enhanced performance levels in 2022.

Tailwinds

  • Expects robust demand environment to continue into 2022.
  • Planning for significant price realization in 2022.
  • Operational excellence initiatives expected to offset headwinds.
  • Well positioned to deliver higher levels of performance in 2022.
  • Focused on winning new business and advancing strategic initiatives.

Headwinds

  • Operating conditions through the rest of the year to be similar to the third quarter.
  • Benefits of strong demand being largely offset by inflation and higher costs to serve customers.
  • Supply chain issues persisting through at least the early part of 2022.
  • Performance was impacted by supply chain disruptions
  • Performance was impacted by higher costs to serve customers

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

-0.4%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.7%

Avg return

30 days after

50%

34 / 68 earnings

Positive

+14.9%

Q4 2015

Best reaction

-14.6%

Q3 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.3%+7.0%+20.2%
Q4 2025+3.2%+13.3%+3.7%
Q3 2025+2.4%+0.9%+5.4%
Q1 2025-1.6%+1.7%+4.9%
Q4 2024+3.5%+3.3%-2.3%
Q3 2024-5.0%-7.8%-8.7%
Q2 2024-1.2%-5.4%-1.2%
Q1 2024+0.9%+3.2%-0.3%
Q4 2023-5.6%-3.9%-1.1%
Q3 2023+2.6%+3.6%+8.0%
Q2 2023-11.4%-13.1%-14.1%
Q1 2023-4.0%-1.6%+1.2%
Q4 2022-1.4%-3.2%+1.7%
Q3 2022+0.2%+4.0%+9.6%
Q2 2022+5.5%+2.5%+4.6%
Q1 2022+5.6%+2.4%+4.0%
Q4 2021-1.2%-1.7%-4.7%
Q3 2021+1.2%+2.5%-8.3%
Q2 2021-4.0%-4.4%-8.4%
Q1 2021+4.2%+2.0%+5.6%
Q4 2020-9.3%-7.2%+0.6%
Q3 2020+5.5%+13.0%+32.1%
Q2 2020+7.4%+13.5%+25.7%
Q1 2020-2.6%-3.4%+13.2%
Q4 2019-0.2%+2.2%-18.0%
Q3 2019-0.1%+8.1%+7.2%
Q2 2019-10.9%-12.6%-17.1%
Q1 2019+5.4%+7.2%-8.2%
Q4 2018-3.5%-0.5%-2.0%
Q3 2018+1.5%+8.1%+5.9%
Q2 2018+1.2%+1.1%+6.3%
Q1 2018+6.3%+8.2%+10.6%
Q4 2017-9.7%-8.6%-4.0%
Q3 2017-5.4%-8.8%-8.8%
Q2 2017-6.5%-7.8%-11.1%
Q1 2017+1.1%-0.2%-4.4%
Q4 2016+2.6%+3.1%+1.2%
Q3 2016-5.6%-6.7%+13.3%
Q2 2016+3.2%+2.9%+5.4%
Q1 2016-1.5%
Q4 2015+14.9%
Q3 2015+7.9%
Q2 2015+1.0%
Q1 2015-3.8%
Q4 2014-6.2%
Q3 2014+0.7%
Q2 2014-4.3%
Q1 2014+2.9%
Q4 2013+3.3%
Q3 2013-14.6%
Q2 2013-5.5%
Q1 2013+1.0%
Q4 2012+2.7%
Q3 2012+2.5%
Q2 2012-0.3%
Q1 2012-0.2%
Q4 2011+1.6%
Q1 2010+1.6%
Q3 2011+8.7%
Q2 2011-8.9%
Q1 2011+1.6%
Q4 2010-7.6%
Q4 2008-7.6%
Q3 2009+6.0%
Q3 2010+6.0%
Q2 2009-0.5%
Q2 2010-0.5%
Q4 2009-0.5%

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