Timken shares eye worst day in two years after 'light' FY23 sales forecast

Timken

06/02/2023 17:29

** Shares of industrial equipment maker Timken Co  TKR.N 
slip ~8% to $80.22 - marking its sharpest one-day fall since Feb
2021
    ** Co sees FY23 sales up roughly 6%, in line with Wall
Street expectations
    ** Still, execs at the company in a call with analysts say
that though they expect continued growth in 2023, volume
assumptions "reflect some prudent cautiousness around the second
half given our limited visibility"
    ** Adds that the midpoint of earnings outlook implies that
2023 consolidated adjusted EBITDA margin will be roughly in line
with 2022
        ** Analysts at Jefferies write in a note that while Q4
results came in higher than expectations, 2023 guidance was
"light"
  
    ** "2023 guidance came in below consensus despite the
positive price/cost outlook" - Jefferies 
    ** TKR forecasts adj FY23 EPS between $6.50 to $7.10 vs
analysts expectations of $6.67 - Refinitiv IBES
    ** Stock is up ~14% YTD
 (Reporting by Anirban Chakroborti in Bengaluru)
 ((Anirban.Chakroborti@thomsonreuters.com;))