Titan Machinery falls 6% after reporting mixed results

Mar. 24, 2022 11:51 AM ETTITNBy: Urvi Shah, SA News Editor1 Comment
  • Titan Machinery (TITN) -6.3% after reporting adj. EPS of $0.99. EPS includes approximately $0.47 of benefits associated with increased manufacturer incentive plans, gain on sale of Montana and Wyoming construction store locations, and a partial release of an income tax valuation allowance.
  • Revenue of $507M missed consensus by $17M.
  • Revenue breakdown: Equipment revenue is $413.2M, up 16.7% Y/Y, parts revenue of $58.5M, an increase of 17.5%, Service revenue of $26.2M, up 14.4% Y/Y.
  • Agriculture revenue of $346.3M, up 14% Y/Y, Construction revenue of $87.9M, down 1% Y/Y, International revenue of $73.4M, up 64% Y/Y.
  • Gross profit increased to $94.2M and gross margin increased to 18.6% primarily due to robust equipment margins, which were enhanced by increased amounts earned from manufacturer incentives.
  • Adjusted EBITDA of $35.9M compared to $13.7 million for the fourth quarter of fiscal 2021.
  • Acquisition: The Company to acquire the assets of Mark's Machinery. in cash. For the TTM period ended December 31, 2021, Mark's Machinery generated revenue of approximately $34M. The transaction is expected to close in early April 2022 and is expected to be accretive to EPS.
  • FY23 Guidance:
  • Segments: Agriculture revenue to be up in the range of 22-27% from FY22 revenue of $1.07B.
  • Construction revenue to be down in the range of 12-17% from FY22 revenue of $317.16M.
  • International revenue to be down in the range of 8-13% from FY22 revenue of $318M.
  • Diluted EPS in the range of $2.55-$2.83 against FY22 EPS of $2.98 vs. $2.83 consensus.
  • Press Release, Transcript, Presentation

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