The Timken Company’s TKR third-quarter 2021 adjusted earnings per share was $1.18, which missed the Zacks Consensus Estimate of $1.20. However, the bottom line improved 4% year over year, driven by higher volume, positive price/mix, a lower tax rate and favorable currency, which offset supply chain disruptions, inflation and higher costs.On a reported basis, the company delivered earnings per share of $1.14 in the quarter under review compared with $1.16 in the prior-year quarter.Total revenues in the quarter were $1,037 million, up 16% from the year-ago quarter. The upside can primarily be attributed to strong organic growth across most end-market sectors, favorable currency translation, higher pricing and contribution from acquisitions. Nevertheless, the top line lagged the Zacks Consensus Estimate of $1,038 million.Timken Company The Price, Consensus and EPS Surprise Timken Company The price-consensus-eps-surprise-chart | Timken Company The QuoteCosts and MarginsCost of sales was up 22% to $769 million from the prior-year quarter. Gross profit increased 1.6% year over year to $268 million. Gross margin was 25.8% compared with 29.5% in the year-ago quarter.Selling, general and administrative expenses were up 6% year over year to $141 million. Adjusted EBITDA increased 3% year over year to $179 million. Adjusted EBITDA margin in the quarter was 17.2% compared with 19.4% in the prior-year quarter.Segment PerformanceThe Mobile Industries segment revenues improved 14% to $487 million from the year-ago quarter. Higher shipments in the off-highway, heavy truck sectors, and the favorable impact of currency translation led to the uptick. This was partially offset by lower revenues in the automotive sector. The segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) declined 15% year over year to $58 million as higher operating costs offset the favorable impact of higher volume and related manufacturing utilization, and positive price/mix.The Process Industries segment revenues rose 18% year over year to $550 million in third-quarter 2021, primarily on account of strong organic growth in most sectors led by distribution, general industrial sectors, improved pricing and favorable impact of currency translation. The segment’s adjusted EBITDA climbed 13.5% year over year to $131 million. Impact of higher volume and related manufacturing utilization, positive price/mix, and favorable currency were partially offset by higher operating costs.Financial PositionTimken had cash and cash equivalents of $262 million at the end of the third quarter of 2021, down from the $320 million at the end of the 2020. Cash flow from operations was around $285 million in the first nine-month period ended Sep 30, 2021 compared with $457 million in the comparable period last year. During the third quarter, Timken returned $53.1 million of cash to shareholders through dividends and the share repurchases.Long-term debt as of Sep 30, 2021 was $1.42 billion, compared with $1.43 billion as of Dec 31, 2020. Net debt to adjusted EBITDA was at 1.6 at the end of third-quarter 2021.Timken completed the acquisition of Intelligent Machine Solutions, thus augmenting its growing linear motion portfolio.Guidance for 2021While strong demand is expected to continue, revenues in the fourth quarter will be down sequentially due to seasonal factors and fewer shipping days. Timken anticipates cost inflation and supply chain issues to remain in the fourth quarter. Adjusted EBITDA margins are likely to be lower than third-quarter 2021 due to lower revenues.In 2022, a strong demand environment will continue, with supply chain issues persisting through at least the early part of the year. The company expects significant price realization and operational excellence initiatives to offset these headwinds.Share Price Performance Image Source: Zacks Investment ResearchOver the past year, shares of Timken have gained 12.4% compared with the industry’s rally of 24.1%.Zacks Rank & Stocks to ConsiderTimken currently has a Zacks Rank #5 (Strong Sell).Some better-ranked stocks in the Industrial Products sector include The Manitowoc Company, Inc. MTW, Encore Wire Corporation WIRE and Heritage-Crystal Clean, Inc. HCCI. All of these stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Manitowoc has an anticipated earnings growth rate of 340% for fiscal 2021. The company’s shares have soared around 169% in a year.Encore Wire has an estimated earnings growth rate of 491% for the ongoing fiscal year. The company’s shares have appreciated 194% in the past year.Heritage-Crystal Clean has a projected earnings growth rate of 553% for the current year. The stock has appreciated around 104% in a year’s time. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. You know this company from its past glory days, but few would expect that it's poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks' Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Timken Company The (TKR): Free Stock Analysis Report The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report Encore Wire Corporation (WIRE): Free Stock Analysis Report HeritageCrystal Clean, Inc. (HCCI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research