Titan International Earnings: Everything You Must Know Now

Titan International Inc. (NYSE:TWI) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Titan International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 53.85% to $0.36 in the quarter versus EPS of $0.78 in the year-earlier quarter.

Revenue: Rose 24.9% to $578.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Titan International Inc. reported adjusted EPS income of $0.36 per share. By that measure, the company missed the mean analyst estimate of $0.43. It missed the average revenue estimate of $591.17 million.

Quoting Management: Maurice Taylor, Chairman and CEO of Titan International states, “The first quarter of 2013 again was a good quarter with sales over $578 million and gross profit over $96.7 million. Could Titan have done even better? Yes. What was good about the quarter? We signed a new 4-year agreement with our unionized factories in Bryan, Ohio; Freeport, Illinois; and Des Moines, Iowa which are represented by the United Steel Workers. These talks have been going on since September of 2012. We believe that the increase in costs will be offset with productivity increases and we have begun to see such evidence in March 2013.”

Key Stats (on next page)…

Revenue increased 17.17% from $493.64 million in the previous quarter. EPS increased 300% from $0.09 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.71 to a profit $0.64. For the current year, the average estimate has moved down from a profit of $2.69 to a profit of $2.31 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)