Timken’s (NYSE:TKR) stock fell as much as 6.7% on Monday after the maker of bearings provided a disappointing forecast for 2024. By comparison, the S&P 400 mid-cap index fell as much as 1.9%.
The company estimated that revenue will fall 2.5% to 4% this year, a steeper decline than the 0.7% drop predicted by Wall Street analysts. Timken (TKR) said weaker demand is likely to offset gains from acquisitions completed last year.
Management forecast adjusted earnings per share of $5.80 to $6.20 per share for the year, compared with the consensus estimate of $6.79 a share.
“We are focused on delivering resilient performance in 2024 through softer industrial markets while continuing to advance our proven strategy,” said Richard Kyle, president and chief executive of Timken, said in a statement.
The company’s fourth-quarter results were better than estimated. Adjusted earnings per share of $1.37 beat the consensus estimate of $1.22.
Revenue rose 1% from a year earlier to $1.09 billion in the three-month period ended in December, compared with the average estimate of $1.06 billion.
