Zacks Research Has Negative Outlook for Timken Q2 Earnings

Timken Company (The) (NYSE:TKR - Free Report) - Equities research analysts at Zacks Research decreased their Q2 2025 earnings estimates for Timken in a research note issued on Wednesday, June 18th. Zacks Research analyst M. Das now forecasts that the industrial products company will earn $1.32 per share for the quarter, down from their previous forecast of $1.33. The consensus estimate for Timken's current full-year earnings is $5.62 per share. Zacks Research also issued estimates for Timken's Q3 2025 earnings at $1.30 EPS, FY2025 earnings at $5.28 EPS, FY2026 earnings at $6.07 EPS, Q1 2027 earnings at $1.67 EPS and FY2027 earnings at $6.42 EPS.

Timken (NYSE:TKR - Get Free Report) last released its quarterly earnings results on Wednesday, April 30th. The industrial products company reported $1.40 earnings per share for the quarter, missing the consensus estimate of $1.43 by ($0.03). The company had revenue of $1.14 billion during the quarter, compared to the consensus estimate of $1.13 billion. Timken had a net margin of 7.24% and a return on equity of 12.62%. The firm's revenue was down 4.2% compared to the same quarter last year. During the same period in the prior year, the company earned $1.77 earnings per share.

TKR has been the subject of a number of other research reports. Citigroup lifted their target price on Timken from $70.00 to $75.00 and gave the stock a "buy" rating in a report on Thursday, May 8th. Morgan Stanley dropped their price objective on shares of Timken from $94.00 to $88.00 and set an "overweight" rating for the company in a research note on Wednesday, April 16th. The Goldman Sachs Group decreased their target price on shares of Timken from $85.00 to $75.00 and set a "neutral" rating on the stock in a research report on Wednesday, April 2nd. Jefferies Financial Group reiterated a "hold" rating and issued a $70.00 price target (down from $90.00) on shares of Timken in a research report on Wednesday, April 2nd. Finally, DA Davidson boosted their price target on Timken from $66.00 to $71.00 and gave the company a "neutral" rating in a research note on Monday, May 5th. Seven research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $78.50.

Timken Stock Performance

TKR opened at $70.57 on Thursday. The company has a debt-to-equity ratio of 0.68, a current ratio of 3.15 and a quick ratio of 1.71. The business has a fifty day simple moving average of $67.93 and a 200 day simple moving average of $72.64. Timken has a 1 year low of $56.20 and a 1 year high of $90.49. The company has a market capitalization of $4.94 billion, a PE ratio of 15.21, a price-to-earnings-growth ratio of 1.67 and a beta of 1.28.

Institutional Investors Weigh In On Timken

A number of hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its stake in Timken by 2.8% in the 1st quarter. Vanguard Group Inc. now owns 6,646,465 shares of the industrial products company's stock valued at $477,681,000 after purchasing an additional 180,705 shares during the last quarter. American Century Companies Inc. lifted its stake in shares of Timken by 7.3% in the 1st quarter. American Century Companies Inc. now owns 3,390,125 shares of the industrial products company's stock valued at $243,648,000 after acquiring an additional 231,435 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of Timken by 6.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,367,167 shares of the industrial products company's stock valued at $170,124,000 after acquiring an additional 133,674 shares in the last quarter. Hotchkis & Wiley Capital Management LLC boosted its holdings in shares of Timken by 2.4% during the 1st quarter. Hotchkis & Wiley Capital Management LLC now owns 1,990,929 shares of the industrial products company's stock valued at $143,088,000 after acquiring an additional 46,090 shares in the last quarter. Finally, Victory Capital Management Inc. grew its position in Timken by 108.8% during the 1st quarter. Victory Capital Management Inc. now owns 1,841,828 shares of the industrial products company's stock worth $132,372,000 after acquiring an additional 959,672 shares during the last quarter. 89.08% of the stock is currently owned by institutional investors and hedge funds.

Timken Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 23rd. Shareholders of record on Tuesday, May 13th were given a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 1.98%. The ex-dividend date of this dividend was Tuesday, May 13th. This is a boost from Timken's previous quarterly dividend of $0.34. Timken's payout ratio is currently 30.17%.

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.

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