Zacks Research Issues Positive Forecast for Timken Earnings

Key Points

• Zacks Research raised its Q2 2028 EPS estimate for Timken to $2.11 from $2.09, signaling a slightly more optimistic outlook for the industrial products company. The current full-year consensus estimate is $6.14 per share.
• Wall Street sentiment remains positive, with several analysts lifting price targets and the stock carrying a consensus rating of “Moderate Buy.” The average price target is $141.62.
• Timken reported strong recent results and boosted its dividend, topping earnings and revenue estimates in its latest quarter and increasing its quarterly payout to $0.36 per share. The company also reaffirmed FY 2026 EPS guidance of 5.75 to 6.25.

Timken Company (The) (NYSE:TKR - Free Report) - Equities research analysts at Zacks Research boosted their Q2 2028 EPS estimates for Timken in a research report issued to clients and investors on Friday, June 26th. Zacks Research analyst Team now forecasts that the industrial products company will post earnings of $2.11 per share for the quarter, up from their prior estimate of $2.09. The consensus estimate for Timken's current full-year earnings is $6.14 per share.

Several other research analysts have also recently commented on the stock. KeyCorp raised their target price on shares of Timken from $130.00 to $140.00 and gave the stock an "overweight" rating in a report on Thursday, May 7th. The Goldman Sachs Group set a $128.00 price target on Timken in a research note on Friday, May 22nd. Morgan Stanley set a $140.00 price objective on Timken in a research note on Thursday, May 21st. Citigroup lifted their price objective on Timken from $125.00 to $140.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Finally, Oppenheimer upped their target price on Timken from $137.00 to $147.00 and gave the company an "outperform" rating in a research report on Friday, June 5th. Six equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Timken has an average rating of "Moderate Buy" and a consensus price target of $141.62.

Timken Stock Performance

NYSE TKR opened at $142.09 on Thursday. The firm has a 50-day moving average price of $125.77 and a two-hundred day moving average price of $107.69. Timken has a 12-month low of $70.57 and a 12-month high of $146.37. The company has a market capitalization of $9.88 billion, a P/E ratio of 32.29, a P/E/G ratio of 1.74 and a beta of 1.20. 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 (NYSE:TKR - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The industrial products company reported $1.67 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 for the quarter, compared to the consensus estimate of $1.17 billion. During the same period in the prior year, the company posted $1.40 earnings per share. Timken's revenue was up 8.0% compared to the same quarter last year. Timken has set its FY 2026 guidance at 5.750-6.250 EPS.

Hedge Funds Weigh In On Timken

Several large investors have recently modified their holdings of TKR. Dimensional Fund Advisors LP grew its stake in shares of Timken by 8.0% in the first quarter. Dimensional Fund Advisors LP now owns 2,886,955 shares of the industrial products company's stock worth $290,320,000 after purchasing an additional 214,845 shares during the last quarter. UBS Group AG grew its position in shares of Timken by 734.7% in the 3rd quarter. UBS Group AG now owns 2,286,250 shares of the industrial products company's stock valued at $171,880,000 after buying an additional 2,012,352 shares during the last quarter. Victory Capital Management Inc. increased its stake in shares of Timken by 15.5% in the fourth quarter. Victory Capital Management Inc. now owns 1,843,042 shares of the industrial products company's stock valued at $155,055,000 after buying an additional 247,000 shares during the period. Invesco Ltd. lifted its stake in shares of Timken by 1.0% in the fourth quarter. Invesco Ltd. now owns 1,371,613 shares of the industrial products company's stock worth $115,394,000 after acquiring an additional 13,459 shares during the period. Finally, Brown Advisory Inc. boosted its holdings in Timken by 5.6% in the fourth quarter. Brown Advisory Inc. now owns 1,273,668 shares of the industrial products company's stock valued at $107,154,000 after acquiring an additional 67,573 shares during the last quarter. Institutional investors own 89.08% of the company's stock.

Insider Transactions at Timken

In other news, Director Richard G. Kyle sold 8,448 shares of the company's stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $127.35, for a total value of $1,075,852.80. Following the completion of the transaction, the director owned 197,361 shares of the company's stock, valued at $25,133,923.35. This represents a 4.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, 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 transaction, the director owned 264,744 shares of the company's stock, valued at approximately $30,845,323.44. This trade represents a 5.36% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 69,079 shares of company stock worth $8,296,144. Insiders own 8.10% of the company's stock.

Timken Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Tuesday, May 19th were paid a dividend of $0.36 per share. The ex-dividend date of this dividend was Tuesday, May 19th. This is a positive change from Timken's previous quarterly dividend of $0.35. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.0%. Timken's payout ratio is 32.73%.

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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