Zacks Research Issues Negative Estimate for Timken Earnings

Key Points

• Zacks Research slightly lowered Timken’s Q3 2026 earnings estimate to $1.50 per share from $1.51, while still projecting full-year FY2026 EPS of $6.03 and continued growth into 2027 and 2028.
• Timken recently beat Wall Street expectations in its latest quarter, reporting $1.67 EPS on revenue of $1.23 billion, and it raised its FY2026 guidance to $5.75-$6.25 EPS.
• The company also boosted its quarterly dividend to $0.36 per share, even as some insiders sold stock and analysts maintain a generally constructive view with a consensus rating of “Moderate Buy.”

Timken Company (The) (NYSE:TKR - Free Report) - Equities researchers at Zacks Research cut their Q3 2026 earnings estimates for Timken in a report released on Wednesday, May 20th. Zacks Research analyst Team now expects that the industrial products company will earn $1.50 per share for the quarter, down from their previous forecast of $1.51. The consensus estimate for Timken's current full-year earnings is $6.03 per share. Zacks Research also issued estimates for Timken's Q4 2026 earnings at $1.29 EPS, FY2026 earnings at $6.03 EPS, Q1 2027 earnings at $1.62 EPS, Q2 2027 earnings at $1.73 EPS, Q3 2027 earnings at $1.72 EPS, Q4 2027 earnings at $1.62 EPS, FY2027 earnings at $6.69 EPS and FY2028 earnings at $7.27 EPS.

Several other research firms have also issued reports on TKR. Wall Street Zen upgraded shares of Timken from a "hold" rating to a "buy" rating in a research report on Sunday, March 1st. The Goldman Sachs Group restated a "neutral" rating and set a $117.00 price target on shares of Timken in a research report on Wednesday, May 13th. KeyCorp upped their price objective on shares of Timken from $130.00 to $140.00 and gave the company an "overweight" rating in a research note on Thursday, May 7th. Morgan Stanley reaffirmed an "overweight" rating and set a $125.00 price objective on shares of Timken in a research note on Friday, May 8th. Finally, Citigroup upped their price objective on shares of Timken from $125.00 to $140.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Five equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $132.38.

Timken Stock Performance

NYSE TKR opened at $117.26 on Thursday. The company has a 50-day simple moving average of $105.80 and a two-hundred day simple moving average of $96.08. The company has a quick ratio of 1.55, a current ratio of 2.88 and a debt-to-equity ratio of 0.60. Timken has a 12-month low of $67.14 and a 12-month high of $123.67. The firm has a market cap of $8.15 billion, a price-to-earnings ratio of 26.65, a PEG ratio of 1.49 and a beta of 1.18.

Timken (NYSE:TKR - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The industrial products company reported $1.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.50 by $0.17. Timken had a net margin of 6.60% and a return on equity of 11.84%. The business had revenue of $1.23 billion during the quarter, compared to analyst estimates of $1.17 billion. During the same period in the prior year, the business posted $1.40 earnings per share. The company's revenue was up 8.0% on a year-over-year basis. Timken has set its FY 2026 guidance at 5.750-6.250 EPS.

Hedge Funds Weigh In On Timken

Institutional investors and hedge funds have recently made changes to their positions in the business. Gordian Capital Singapore Pte Ltd bought a new position in shares of Timken during the fourth quarter valued at approximately $25,000. Clearstead Advisors LLC increased its stake in shares of Timken by 130.3% during the fourth quarter. Clearstead Advisors LLC now owns 304 shares of the industrial products company's stock valued at $26,000 after purchasing an additional 172 shares in the last quarter. Eastern Bank bought a new position in shares of Timken during the fourth quarter valued at approximately $27,000. V Square Quantitative Management LLC bought a new position in shares of Timken during the fourth quarter valued at approximately $31,000. Finally, Kestra Investment Management LLC bought a new position in shares of Timken during the second quarter valued at approximately $42,000. Institutional investors own 89.08% of the company's stock.

Insider Transactions at Timken

In related news, Director John M. Timken, Jr. sold 15,000 shares of the stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $116.51, for a total value of $1,747,650.00. Following the completion of the transaction, the director directly owned 264,744 shares of the company's stock, valued at $30,845,323.44. This represents a 5.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Richard G. Kyle sold 37,181 shares of the stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $117.34, for a total transaction of $4,362,818.54. Following the completion of the transaction, the director directly owned 206,455 shares of the company's stock, valued at approximately $24,225,429.70. The trade was a 15.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 71,817 shares of company stock valued at $8,230,960. 8.10% of the stock is owned by insiders.

Timken Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Tuesday, May 19th will be paid a $0.36 dividend. The ex-dividend date of this dividend is Tuesday, May 19th. This is an increase from Timken's previous quarterly dividend of $0.35. This represents a $1.44 dividend on an annualized basis and a yield of 1.2%. Timken's payout ratio is currently 32.73%.

Trending Headlines about Timken

Here are the key news stories impacting Timken this week:

• Positive Sentiment: Timken held an Investor Day and outlined 2028 financial targets, saying it plans to accelerate profitable growth, expand margins, and create more shareholder value. That long-term guidance appears to be boosting investor confidence in the stock. Timken Details Strategy and Announces 2028 Financial Targets at Investor Day
• Positive Sentiment: Zacks Research raised earnings estimates across multiple periods, including FY2026, FY2027, and FY2028, signaling expectations for continued earnings growth. Higher forecasts can support a stronger valuation for Timken. The Timken Company (TKR) Analyst/Investor Day - Slideshow
• Neutral Sentiment: Analysts also nudged near-term quarterly EPS estimates slightly higher or lower in some cases, but the broad takeaway was a more constructive earnings outlook overall.

About Timken

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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