Timken (NYSE:TKR) Releases FY 2025 Earnings Guidance

Key Points

• Timken updated its FY 2025 earnings guidance to $5.100-$5.400 per share, slightly below the consensus estimate of $5.294, while projecting revenue of $4.5 billion-$4.6 billion.
• Recent analyst reports show varied outlooks for Timken, with target prices ranging from $65.00 to $88.00, reflecting both hold and buy ratings from numerous firms.
• The company has increased its quarterly dividend from $0.34 to $0.35 per share, resulting in an annualized dividend of $1.40 and a yield of 1.73%.

Timken (NYSE:TKR - Get Free Report) updated its FY 2025 earnings guidance on Wednesday. The company provided EPS guidance of 5.100-5.400 for the period, compared to the consensus EPS estimate of 5.294. The company issued revenue guidance of $4.5 billion-$4.6 billion, compared to the consensus revenue estimate of $4.5 billion.

Timken Stock Performance

Timken stock traded down $2.62 during midday trading on Friday, hitting $73.47. 1,003,143 shares of the company's stock were exchanged, compared to its average volume of 690,828. The firm's 50 day simple moving average is $74.47 and its 200 day simple moving average is $73.21. Timken has a 12-month low of $56.20 and a 12-month high of $87.52. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.71 and a current ratio of 3.13. The stock has a market cap of $5.12 billion, a price-to-earnings ratio of 16.70, a price-to-earnings-growth ratio of 1.66 and a beta of 1.30.

Timken (NYSE:TKR - Get Free Report) last released its earnings results on Wednesday, July 30th. The industrial products company reported $1.42 EPS for the quarter, topping the consensus estimate of $1.34 by $0.08. The company had revenue of $1.17 billion during the quarter, compared to analysts' expectations of $1.15 billion. Timken had a net margin of 6.86% and a return on equity of 11.78%. The business's revenue was down .8% on a year-over-year basis. During the same quarter last year, the business earned $1.63 EPS. Equities research analysts predict that Timken will post 5.62 EPS for the current year.

Wall Street Analyst Weigh In

TKR has been the subject of several research reports. Loop Capital dropped their price objective on Timken from $85.00 to $65.00 and set a "hold" rating for the company in a research report on Thursday, April 17th. Citigroup lifted their price target on shares of Timken from $75.00 to $80.00 and gave the stock a "buy" rating in a report on Tuesday, June 24th. DA Davidson upped their price objective on shares of Timken from $71.00 to $80.00 and gave the company a "neutral" rating in a research note on Tuesday, July 22nd. Oppenheimer reduced their target price on Timken from $90.00 to $88.00 and set an "outperform" rating on the stock in a research report on Thursday, May 1st. Finally, Evercore ISI lowered their price target on Timken from $102.00 to $85.00 and set an "outperform" rating for the company in a report on Monday, May 19th. Six analysts have rated the stock with a hold rating and four have issued a buy rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $79.90.

Institutional Trading of Timken

Several hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada grew its holdings in Timken by 44.2% in the 1st quarter. Royal Bank of Canada now owns 90,550 shares of the industrial products company's stock worth $6,508,000 after buying an additional 27,750 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Timken by 7.6% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 226,872 shares of the industrial products company's stock worth $16,305,000 after purchasing an additional 16,000 shares in the last quarter. Finally, Goldman Sachs Group Inc. increased its holdings in shares of Timken by 147.0% in the first quarter. Goldman Sachs Group Inc. now owns 355,765 shares of the industrial products company's stock valued at $25,569,000 after buying an additional 211,718 shares in the last quarter. Institutional investors own 89.08% of the company's stock.

About Timken

The Timken Company designs, manufactures, and sells engineered bearings and industrial motion products, and related services in the United States and internationally. The company's Engineered Bearings segment provides various bearing products, including tapered, spherical, and cylindrical roller bearings; plain bearings, metal-polymer bearings, and rod end bearings; radial, angular, and precision ball bearings; thrust and specialty ball bearings; journal bearings; and housed or mounted bearings.