Titan Machinery Earnings: Here’s Why Investors are Selling Shares Now

Titan Machinery, Inc. (NASDAQ:TITN) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 4.15%.

Titan Machinery, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 28% to $0.18 in the quarter versus EPS of $0.25 in the year-earlier quarter.

Revenue: Rose 19.05% to $488.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Titan Machinery, Inc. reported adjusted EPS income of $0.18 per share. By that measure, the company missed the mean analyst estimate of $0.20. It beat the average revenue estimate of $463.11 million.

Quoting Management: David Meyer, Titan Machinery’s Chairman and Chief Executive Officer, stated, “In the second quarter of fiscal 2014, we generated solid sales for our Agriculture segment. Our higher margin parts and service sales performed well during the quarter; however, they were partially offset by lower than expected equipment margins. As we look toward the back half of the year for our Agriculture business, we anticipate a challenging environment given lower commodity prices combined with anticipated reduced crop production in our Agriculture footprint. We believe these factors will affect our customers’ sentiment, resulting in lower equipment revenues and pricing pressure on equipment margins.”

Key Stats (on next page)…

Revenue increased 10.54% from $441.67 million in the previous quarter. EPS increased to $0.18 in the quarter versus EPS of $-0.02 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.74 and has not changed. For the current year, the average estimate has moved down from a profit of $1.80 to a profit of $1.79 over the last ninety days.

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