Analysts Issue Forecasts for Timken's Q3 Earnings (NYSE:TKR)

Key Points

• Zacks Research cut Timken’s Q3 2026 EPS forecast to $1.43 from $1.50, while analysts’ full-year consensus stands at $6.26 per share. Timken’s own FY2026 guidance is $6.05–$6.35 EPS.
• Timken recently exceeded quarterly expectations, reporting $1.83 EPS versus the $1.62 consensus and $1.26 billion in revenue versus $1.23 billion expected; revenue increased 7.5% year over year.
• Despite the estimate reduction, analysts maintain a generally positive view, with six Buy ratings, three Holds and a $150 consensus price target. Shares opened at $125.61, down 2.8%, while the company announced a quarterly dividend of $0.36 per share.

Timken Company (The) (NYSE:TKR - Free Report) - Investment analysts at Zacks Research dropped their Q3 2026 earnings per share estimates for Timken in a report released on Tuesday, August 18th. Zacks Research analyst Team now expects that the industrial products company will post earnings of $1.43 per share for the quarter, down from their previous forecast of $1.50. The consensus estimate for Timken's current full-year earnings is $6.26 per share. Zacks Research also issued estimates for Timken's Q4 2026 earnings at $1.25 EPS, Q1 2028 earnings at $1.98 EPS and FY2028 earnings at $8.26 EPS.

Timken (NYSE:TKR - Get Free Report) last released its earnings results on Tuesday, August 4th. The industrial products company reported $1.83 earnings per share for the quarter, topping analysts' consensus estimates of $1.62 by $0.21. Timken had a return on equity of 12.63% and a net margin of 5.43%.The firm had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.23 billion. During the same period in the prior year, the firm posted $1.12 earnings per share. The firm's revenue for the quarter was up 7.5% compared to the same quarter last year. Timken has set its FY 2026 guidance at 6.050-6.350 EPS.

Other equities research analysts also recently issued reports about the stock. JPMorgan Chase & Co. upped their price target on shares of Timken from $150.00 to $160.00 and gave the company an "overweight" rating in a report on Monday, July 13th. Morgan Stanley set a $140.00 target price on shares of Timken in a report on Thursday, May 21st. Citigroup increased their target price on shares of Timken from $140.00 to $160.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. Evercore restated an "outperform" rating and set a $158.00 target price on shares of Timken in a report on Monday, May 11th. Finally, DA Davidson set a $130.00 price target on shares of Timken in a research report on Friday, August 14th. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, Timken has an average rating of "Moderate Buy" and a consensus price target of $150.00.

Timken Trading Down 2.8%

Shares of Timken stock opened at $125.61 on Thursday. The business has a fifty day simple moving average of $137.24 and a 200-day simple moving average of $119.14. Timken has a fifty-two week low of $70.57 and a fifty-two week high of $146.37. The firm has a market cap of $8.70 billion, a price-to-earnings ratio of 34.04, a price-to-earnings-growth ratio of 1.52 and a beta of 1.21. The company has a quick ratio of 1.74, a current ratio of 3.10 and a debt-to-equity ratio of 0.61.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Gordian Capital Singapore Pte Ltd bought a new position in Timken during the fourth quarter valued at approximately $25,000. Clearstead Advisors LLC grew its position in Timken by 130.3% in the fourth quarter. Clearstead Advisors LLC now owns 304 shares of the industrial products company's stock worth $26,000 after acquiring an additional 172 shares in the last quarter. Allworth Financial LP acquired a new position in shares of Timken during the 2nd quarter worth $37,000. Elevation Wealth Partners LLC raised its holdings in Timken by 420.0% during the second quarter. Elevation Wealth Partners LLC now owns 260 shares of the industrial products company's stock valued at $38,000 after buying an additional 210 shares in the last quarter. Finally, Trust Co. of Vermont bought a new position in Timken during the second quarter valued at about $41,000. Hedge funds and other institutional investors own 89.08% of the company's stock.

Insider Buying and Selling at Timken

In related news, Director Richard G. Kyle sold 13,637 shares of the stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $126.63, for a total value of $1,726,853.31. Following the completion of the sale, the director directly owned 183,724 shares of the company's stock, valued at approximately $23,264,970.12. This represents a 6.91% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Ajita G. Rajendra sold 8,450 shares of Timken stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $131.34, for a total value of $1,109,823.00. Following the transaction, the director directly owned 20,225 shares in the company, valued at approximately $2,656,351.50. This trade represents a 29.47% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 30,535 shares of company stock worth $3,912,529 over the last three months. 8.10% of the stock is owned by insiders.

Timken Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Tuesday, August 18th will be given a $0.36 dividend. This represents a $1.44 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend is Tuesday, August 18th. Timken's dividend payout ratio (DPR) is 39.02%.

Key Stories Impacting Timken

Here are the key news stories impacting Timken this week:

• Positive Sentiment: CNBC contributor Stephanie Link identified Timken as an attractively valued, lesser-known way to participate in the artificial-intelligence supply chain. The thesis appears to center on Timken’s industrial components being used in infrastructure supporting AI-related demand, potentially giving the stock exposure to the theme without the high multiples of many large AI companies. Stephanie Link is buying this little-known play on the AI food chain. And it's cheap
• Positive Sentiment: Zacks Research raised multiple Timken earnings forecasts, including FY2026 EPS to $6.18 from $6.11, FY2027 EPS to $6.96 from $6.86, Q1 2027 EPS to $1.70 from $1.67, Q2 2027 EPS to $1.84 from $1.78, Q4 2027 EPS to $1.66 from $1.65, and Q2 2028 EPS to $2.22 from $2.11. The revisions signal improving expectations for future profitability, although the FY2026 estimate remains slightly below the broader consensus of $6.25.
• Positive Sentiment: A Seeking Alpha analysis presented a “buy” case for Timken that does not require the stock to receive a higher valuation multiple, suggesting potential upside could come from earnings growth and operating performance rather than further expansion in its price-to-earnings ratio. Timken: Buy Case That Doesn't Need A Higher Multiple
• Neutral Sentiment: Timken India reported proceedings from its annual general meeting. The update is largely administrative and does not appear to introduce a material change to the outlook for Timken Company’s consolidated earnings. Timken India Details Proceedings of 39th Virtual Annual General Meeting

About Timken

The Timken Company is a global manufacturer specializing in engineered bearings and mechanical power transmission products. Its core offerings include tapered and cylindrical roller bearings, spherical and plain bearings, mounted bearing units, and precision gear drives. Timken's products serve a broad range of industries, from industrial machinery and aerospace to automotive, rail, wind energy and heavy equipment.

Beyond bearings, Timken's portfolio extends to industrial chains, belts, couplings and related components designed to optimize power transmission systems.

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