Timken (NYSE:TKR) Issues FY 2026 Earnings Guidance

Key Points

• Timken issued FY 2026 guidance for EPS of $6.05–$6.35, broadly in line with the $6.14 analyst consensus, and revenue of approximately $4.8 billion.
• The company’s latest quarter exceeded expectations, with EPS of $1.83 versus the $1.62 consensus and revenue of $1.26 billion, up 7.5% year over year.
• Shares fell 6.8% to $132.07, despite analysts maintaining a “Moderate Buy” consensus and an average price target of $150; Timken also raised its quarterly dividend to $0.36 per share.

Timken (NYSE:TKR - Get Free Report) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided EPS guidance of 6.050-6.350 for the period, compared to the consensus EPS estimate of 6.140. The company issued revenue guidance of $4.8 billion-$4.8 billion, compared to the consensus revenue estimate of $4.8 billion.

Analysts Set New Price Targets

TKR has been the topic of several research analyst reports. The Goldman Sachs Group raised their price objective on shares of Timken from $128.00 to $142.00 and gave the stock a "neutral" rating in a research note on Friday, July 10th. Oppenheimer upped their target price on shares of Timken from $147.00 to $150.00 and gave the company an "outperform" rating in a research note on Tuesday, July 21st. DA Davidson initiated coverage on shares of Timken in a report on Tuesday, June 16th. They issued a "neutral" rating and a $130.00 price target for the company. KeyCorp raised their price target on shares of Timken from $140.00 to $160.00 and gave the stock an "overweight" rating in a research report on Monday, July 13th. Finally, Morgan Stanley set a $140.00 price objective on shares of Timken in a research report on Thursday, May 21st. Six investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $150.00.

Timken Trading Down 6.8%

Shares of Timken stock opened at $132.07 on Tuesday. Timken has a 52-week low of $70.57 and a 52-week high of $146.37. The firm has a market capitalization of $9.18 billion, a PE ratio of 29.90, a price-to-earnings-growth ratio of 1.64 and a beta of 1.21. The company has a debt-to-equity ratio of 0.60, a current ratio of 2.88 and a quick ratio of 1.55. The company's fifty day moving average price is $137.40 and its two-hundred day moving average price is $116.04.

Timken (NYSE:TKR - Get Free Report) last posted its earnings results on Tuesday, August 4th. The industrial products company reported $1.83 earnings per share for the quarter, beating analysts' consensus estimates of $1.62 by $0.21. Timken had a net margin of 6.60% and a return on equity of 11.84%. The business had revenue of $1.26 billion for the quarter, compared to analysts' expectations of $1.23 billion. During the same quarter in the previous year, the firm posted $1.12 earnings per share. The firm's revenue for the quarter was up 7.5% on a year-over-year basis. Timken has set its FY 2026 guidance at 6.050-6.350 EPS. On average, analysts expect that Timken will post 6.16 EPS for the current year.

Timken Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Tuesday, May 19th were given a dividend of $0.36 per share. This is a boost from Timken's previous quarterly dividend of $0.35. The ex-dividend date was Tuesday, May 19th. This represents a $1.44 annualized dividend and a dividend yield of 1.1%. Timken's dividend payout ratio is 32.73%.

Insider Buying and Selling at Timken

In other Timken news, Director John M. Timken, Jr. sold 15,000 shares of the stock in a transaction on Friday, May 8th. The stock was sold at an average price of $116.51, for a total transaction of $1,747,650.00. Following the completion of the transaction, the director directly owned 264,744 shares in the company, valued at $30,845,323.44. This represents a 5.36% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Ajita G. Rajendra sold 8,450 shares of Timken stock in a transaction on 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 of the company's stock, valued at approximately $2,656,351.50. The trade was a 29.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 69,079 shares of company stock worth $8,296,144 over the last three months. Company insiders own 8.10% of the company's stock.

Institutional Investors Weigh In On Timken

Large investors have recently bought and sold shares of the business. Amundi bought a new stake in shares of Timken during the fourth quarter worth $298,000. Fieldview Capital Management LLC acquired a new stake in shares of Timken in the fourth quarter valued at $287,000. Johnson Investment Counsel Inc. bought a new position in shares of Timken in the fourth quarter valued at about $244,000. Smartleaf Asset Management LLC raised its holdings in shares of Timken by 25.8% in the fourth quarter. Smartleaf Asset Management LLC now owns 2,679 shares of the industrial products company's stock valued at $230,000 after buying an additional 549 shares during the last quarter. Finally, Hilltop Holdings Inc. lifted its position in Timken by 3.7% during the 3rd quarter. Hilltop Holdings Inc. now owns 3,997 shares of the industrial products company's stock worth $300,000 after buying an additional 142 shares in the last quarter. 89.08% of the stock is currently owned by institutional investors.

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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