Timken (NYSE:TKR) Releases Quarterly Earnings Results, Beats Expectations By $0.21 EPS

Key Points

• Timken beat quarterly expectations: EPS was $1.83 versus the $1.62 consensus, while revenue rose 7.5% year over year to $1.26 billion, ahead of estimates.
• The company updated its fiscal 2026 EPS guidance to $6.05–$6.35, and its stock rose 3.1% following the results.
• Timken increased its quarterly dividend to $0.36 per share, while analysts maintained a generally positive outlook with a consensus rating of “Moderate Buy” and a $150 price target.

Timken (NYSE:TKR - Get Free Report) released its quarterly earnings results on Tuesday. The industrial products company reported $1.83 earnings per share for the quarter, beating analysts' consensus estimates of $1.62 by $0.21, FiscalAI reports. Timken had a return on equity of 11.84% and a net margin of 6.60%.The business had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.23 billion. During the same quarter last year, the company posted $1.12 EPS. Timken's revenue for the quarter was up 7.5% on a year-over-year basis. Timken updated its FY 2026 guidance to 6.050-6.350 EPS.

Timken Trading Up 3.1%

NYSE:TKR opened at $141.78 on Tuesday. The stock has a market cap of $9.85 billion, a PE ratio of 32.22, a price-to-earnings-growth ratio of 1.64 and a beta of 1.21. Timken has a fifty-two week low of $70.57 and a fifty-two week high of $146.37. 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 stock's 50-day moving average is $137.40 and its two-hundred day moving average is $116.04.

Timken Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Tuesday, May 19th were paid a dividend of $0.36 per share. This is a boost from Timken's previous quarterly dividend of $0.35. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $1.44 annualized dividend and a yield of 1.0%. Timken's dividend payout ratio (DPR) is presently 32.73%.

Insider Transactions at Timken

In related news, Director John M. Timken, Jr. sold 15,000 shares of the firm's 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 completion of the sale, the director directly owned 264,744 shares in the company, valued at approximately $30,845,323.44. This trade represents a 5.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Richard G. Kyle sold 8,448 shares of the business's stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $127.35, for a total transaction of $1,075,852.80. Following the transaction, the director directly owned 197,361 shares in the company, valued at $25,133,923.35. The trade was a 4.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 69,079 shares of company stock valued at $8,296,144 over the last three months. 8.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Timken

Several institutional investors and hedge funds have recently modified their holdings of the stock. Amundi purchased a new position in Timken in the fourth quarter valued at about $298,000. Fieldview Capital Management LLC acquired a new position in Timken in the 4th quarter worth about $287,000. Johnson Investment Counsel Inc. purchased a new stake in shares of Timken during the 4th quarter worth about $244,000. Smartleaf Asset Management LLC raised its stake in shares of Timken by 25.8% during the 4th quarter. Smartleaf Asset Management LLC now owns 2,679 shares of the industrial products company's stock worth $230,000 after purchasing an additional 549 shares in the last quarter. Finally, Hilltop Holdings Inc. lifted its holdings in shares of Timken by 3.7% during the 3rd quarter. Hilltop Holdings Inc. now owns 3,997 shares of the industrial products company's stock valued at $300,000 after buying an additional 142 shares during the last quarter. 89.08% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the company. Morgan Stanley set a $140.00 price objective on Timken in a report on Thursday, May 21st. Oppenheimer raised their target price on shares of Timken from $147.00 to $150.00 and gave the stock an "outperform" rating in a report on Tuesday, July 21st. Citigroup lifted their target price on shares of Timken from $140.00 to $160.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. KeyCorp upped their price target on shares of Timken from $140.00 to $160.00 and gave the company an "overweight" rating in a research report on Monday, July 13th. Finally, 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. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Timken presently has an average rating of "Moderate Buy" and a consensus price target of $150.00.

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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