Brokers Set Expectations for Timken's Q1 Earnings (NYSE:TKR)

Key Points

• Zacks Research raised its Q1 2028 EPS estimate for Timken to $1.85 from $1.73, reflecting a more upbeat near-term earnings outlook for the industrial products company.
• Timken’s latest quarterly results beat expectations, with EPS of $1.67 versus the $1.50 consensus and revenue of $1.23 billion versus $1.17 billion expected; revenue rose 8% year over year.
• Analysts remain generally constructive on the stock, with a consensus rating of “Moderate Buy” and an average price target of $136, while Timken also increased its quarterly dividend to $0.36 per share.

Timken Company (The) (NYSE:TKR - Free Report) - Analysts at Zacks Research upped their Q1 2028 EPS estimates for Timken in a report issued on Wednesday, May 20th. Zacks Research analyst Team now forecasts that the industrial products company will post earnings per share of $1.85 for the quarter, up from their prior estimate of $1.73. The consensus estimate for Timken's current full-year earnings is $6.05 per share.

Timken (NYSE:TKR - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The industrial products company reported $1.67 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.50 by $0.17. Timken had a net margin of 6.60% and a return on equity of 11.84%. The firm had revenue of $1.23 billion for the quarter, compared to the consensus estimate of $1.17 billion. During the same period last year, the firm earned $1.40 earnings per share. The company's quarterly revenue was up 8.0% on a year-over-year basis. Timken has set its FY 2026 guidance at 5.750-6.250 EPS.

Other equities analysts also recently issued reports about the stock. Weiss Ratings reiterated a "hold (c+)" rating on shares of Timken in a research note on Monday, April 20th. KeyCorp increased their price objective on shares of Timken from $130.00 to $140.00 and gave the company an "overweight" rating in a research note on Thursday, May 7th. The Goldman Sachs Group set a $128.00 target price on shares of Timken in a research report on Friday. JPMorgan Chase & Co. raised shares of Timken from an "underweight" rating to a "neutral" rating and increased their target price for the company from $110.00 to $130.00 in a research report on Friday, May 15th. Finally, DA Davidson increased their target price on shares of Timken from $117.00 to $120.00 and gave the company a "neutral" rating in a research report on Thursday. Five investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $136.00.

Timken Price Performance

NYSE TKR opened at $118.99 on Friday. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.55 and a current ratio of 2.88. The firm's 50 day moving average price is $106.14 and its 200-day moving average price is $96.36. Timken has a 52-week low of $67.14 and a 52-week high of $123.67. The company has a market cap of $8.27 billion, a PE ratio of 27.04, a P/E/G ratio of 1.59 and a beta of 1.18.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in TKR. Gordian Capital Singapore Pte Ltd purchased a new position in shares of Timken in the fourth quarter worth $25,000. Clearstead Advisors LLC raised its holdings in shares of 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 buying an additional 172 shares during the last quarter. Eastern Bank purchased a new position in shares of Timken in the fourth quarter worth $27,000. V Square Quantitative Management LLC purchased a new position in shares of Timken in the fourth quarter worth $31,000. Finally, Kestra Investment Management LLC purchased a new position in shares of Timken in the second quarter worth $42,000. Hedge funds and other institutional investors own 89.08% of the company's stock.

Insider Buying and Selling

In related news, Director Richard G. Kyle sold 37,181 shares of the stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $117.34, for a total transaction of $4,362,818.54. Following the completion of the sale, the director owned 206,455 shares of the company's stock, valued at $24,225,429.70. This represents a 15.26% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director John M. Timken, Jr. sold 15,000 shares of the stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $116.51, for a total transaction of $1,747,650.00. Following the sale, the director directly owned 264,744 shares of the company's stock, valued at $30,845,323.44. The trade was a 5.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 8.10% of the company's stock.

Timken Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Tuesday, May 19th will be given a dividend of $0.36 per share. The ex-dividend date of this dividend is Tuesday, May 19th. This is a positive change from Timken's previous quarterly dividend of $0.35. This represents a $1.44 dividend on an annualized basis and a yield of 1.2%. Timken's dividend payout ratio is currently 32.73%.

Trending Headlines about Timken

Here are the key news stories impacting Timken this week:

• Positive Sentiment: Timken laid out new 2028 financial targets at its Investor Day, highlighting plans to accelerate growth and structurally improve margins. Timken Details Strategy and Announces 2028 Financial Targets at Investor Day
• Positive Sentiment: Zacks Research raised multiple EPS estimates for Timken, including FY2026 to $6.03, FY2027 to $6.69, and FY2028 to $7.27, signaling improved earnings outlook.
• Positive Sentiment: DA Davidson raised its price target on Timken to $120 from $117, implying a modest upside from recent trading levels, while keeping a neutral rating. Benzinga

Timken Company Profile

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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