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 18.48%.

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Titan Machinery, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 13.1% to $0.73 in the quarter versus EPS of $0.84 in the year-earlier quarter.

Revenue: Rose 29.24% to $784.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Titan Machinery, Inc. reported adjusted EPS income of $0.73 per share. By that measure, the company missed the mean analyst estimate of $0.92. It beat the average revenue estimate of $692.78 million.

Quoting Management: David Meyer, Titan Machinery’s Chairman and Chief Executive Officer, stated, “In the fourth quarter, we continued to generate strong sales, which enabled us to exceed the high end of our fiscal 2013 annual sales guidance. Our Agriculture segment performed well in the fourth quarter and throughout fiscal 2013 despite certain weather related challenges farmers faced earlier in the year. Our Construction business generated top line growth in fiscal 2013; however, our bottom line results for this segment reflect difficult industry conditions as well as us falling short of our operational targets. To improve our overall Construction operating results, we are refocusing on generating stronger revenue growth, improving operating expenses and driving better pre-tax returns.”

Key Stats (on next page)…

Revenue increased 34.77% from $582.11 million in the previous quarter. EPS increased 10.61% from $0.66 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.36 to a profit $0.39. For the current year, the average estimate has moved up from a profit of $2.17 to a profit of $2.19 over the last ninety days.

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