Zacks Research Issues Positive Outlook for Timken Earnings

Key Points

• Zacks Research raised Timken’s Q3 2026 EPS estimate to $1.45 from $1.44, while forecasting full-year 2026 EPS of $6.20 versus the broader consensus of $6.25.
• Timken’s latest quarter exceeded expectations, with EPS of $1.83 versus $1.62 expected and revenue of $1.26 billion, up 7.5% year over year. Management’s FY 2026 EPS guidance remains $6.05–$6.35.
• Analyst sentiment is broadly positive: seven analysts rate the stock Buy and three rate it Hold, producing a “Moderate Buy” consensus and a $145 average price target, compared with a recent share price of $114.11.

Timken Company (The) (NYSE:TKR - Free Report) - Analysts at Zacks Research boosted their Q3 2026 EPS estimates for Timken in a note issued to investors on Tuesday, October 13th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings per share of $1.45 for the quarter, up from their previous forecast of $1.44. The consensus estimate for Timken's current full-year earnings is $6.25 per share. Zacks Research also issued estimates for Timken's FY2026 earnings at $6.20 EPS, Q1 2027 earnings at $1.81 EPS, Q2 2027 earnings at $1.91 EPS, Q3 2027 earnings at $1.80 EPS, Q4 2027 earnings at $1.70 EPS, FY2027 earnings at $7.22 EPS and Q3 2028 earnings at $2.19 EPS.

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

Several other research analysts have also weighed in on the stock. Wall Street Zen lowered shares of Timken from a "buy" rating to a "hold" rating in a research note on Saturday, October 3rd. Citigroup decreased their target price on shares of Timken from $160.00 to $140.00 and set a "buy" rating for the company in a research note on Monday. Bank of America raised shares of Timken from a "neutral" rating to a "buy" rating and lifted their target price for the company from $129.00 to $135.00 in a research note on Tuesday, September 1st. The Goldman Sachs Group boosted their price target on shares of Timken from $128.00 to $142.00 and gave the company a "neutral" rating in a report on Friday, July 10th. Finally, Oppenheimer reaffirmed an "outperform" rating and issued a $150.00 price target on shares of Timken in a research note on Thursday, October 1st. Seven research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $145.00.

Timken Price Performance

TKR opened at $114.11 on Wednesday. The firm has a market capitalization of $7.91 billion, a P/E ratio of 30.92, a PEG ratio of 1.28 and a beta of 1.18. The stock has a fifty day moving average of $121.52 and a 200-day moving average of $123.49. The company has a quick ratio of 1.74, a current ratio of 3.10 and a debt-to-equity ratio of 0.61. Timken has a 12-month low of $71.39 and a 12-month high of $146.37.

Timken Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Tuesday, August 18th were issued a dividend of $0.36 per share. The ex-dividend date was Tuesday, August 18th. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.3%. Timken's dividend payout ratio (DPR) is currently 39.02%.

Insider Activity

In related news, Director Richard Kyle sold 13,637 shares of the company's stock in a transaction on Monday, August 10th. The shares were 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 in the company, valued at approximately $23,264,970.12. This represents a 6.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Insiders own 8.10% of the company's stock.

Hedge Funds Weigh In On Timken

Several institutional investors have recently bought and sold shares of the stock. BlackRock Inc. bought a new stake in shares of Timken during the 2nd quarter worth about $869,997,000. Dimensional Fund Advisors LP raised its stake in shares of Timken by 8.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,886,955 shares of the industrial products company's stock valued at $290,320,000 after acquiring an additional 214,845 shares in the last quarter. Bank of New York Mellon Corp bought a new position in shares of Timken in the 2nd quarter valued at approximately $140,755,000. William Blair Investment Management LLC acquired a new stake in Timken in the 2nd quarter worth approximately $138,757,000. Finally, Nykredit A S acquired a new stake in Timken in the 2nd quarter worth approximately $108,692,000. 89.08% of the stock is currently owned by institutional investors.

Timken Company Profile

Timken NYSE: TKR is an engineered bearings and industrial motion products company. Its offerings include tapered, spherical, cylindrical, needle and precision bearings, as well as seals and lubrication systems designed to reduce friction, manage loads and support the performance of mechanical equipment.

Through its Industrial Motion business, Timken also provides products such as mechanical power transmission components, chains, belts, couplings, linear motion systems and gear drives.

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