TimkenSteel (TMST) to Report Q2 Earnings: What's in the Cards?

TimkenSteel Corporation TMST will release second-quarter 2021 results after the closing bell on Aug 5. Higher demand in automotive and a recovery in industrial markets are likely to have aided its performance in the second quarter.

The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missed once. It has a trailing four-quarter earnings surprise of roughly 31.8%, on average. It posted an earnings surprise of 19.4% in the last reported quarter.

Shares of TimkenSteel have rallied 250% in the past year compared with 147.6% rise of the industry.

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Let’s see how things are shaping up for this announcement.

What do the Estimates Say?

The Zacks Consensus Estimate for second-quarter sales for TimkenSteel is currently pegged at $326.4 million, which suggests a rise of around 111.9% year over year.

Some Factors to Watch For

TimkenSteel is expected to have benefited, in the second quarter, from higher end-market demand. Strong demand in automotive and an improvement in the industrial end markets are expected to have driven its shipments in the June quarter.

In automotive, the company is witnessing healthy demand in the light truck and SUV categories. It also seeing continued recovery in its industrial markets as reflected by higher shipments. However, weakness in the energy market is likely to have continued in the second quarter.

The company is also likely to have benefited from its efforts to improve its cost structure and manufacturing efficiency in the to-be-reported quarter. Benefits of its cost-reduction actions are expected to reflect on its bottom line in the quarter.

Timken Steel Corporation Price and EPS Surprise

Timken Steel Corporation Price and EPS SurpriseTimken Steel Corporation Price and EPS Surprise
Timken Steel Corporation Price and EPS Surprise

Timken Steel Corporation price-eps-surprise | Timken Steel Corporation Quote

Zacks Model

Our proven model does not conclusively predict an earnings beat for TimkenSteel this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for TimkenSteel is 0.00%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged at 62 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: TimkenSteel currently carries a Zacks Rank #2.

Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Sociedad Quimica y Minera de Chile S.A. SQM scheduled to release earnings on Aug 18, has an Earnings ESP of +21.88% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

GrowGeneration Corp. GRWG, scheduled to release earnings on Aug 12, has an Earnings ESP of +3.45% and carries a Zacks Rank #2.

Hecla Mining Company HL, scheduled to release earnings on Aug 5, has an Earnings ESP of +3.13% and carries a Zacks Rank #3.

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Sociedad Quimica y Minera S.A. (SQM) : Free Stock Analysis Report

Hecla Mining Company (HL) : Free Stock Analysis Report

Timken Steel Corporation (TMST) : Free Stock Analysis Report

GrowGeneration Corp. (GRWG) : Free Stock Analysis Report

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By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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