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Titan Machinery (TITN) Soars 23.9%: Is Further Upside Left in the Stock?
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Titan Machinery (TITN - Free Report) shares rallied 23.9% in the last trading session to close at $31.67. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.3% loss over the past four weeks.
An impressive first-quarter fiscal 2022 (ended Apr 30, 2021) performance and a raised guidance for fiscal 2022 fueled the spike in Titan Machinery’s share price. The company witnessed a whopping 207% improvement in earnings from the last year quarter, courtesy of increased equipment sales across all the segments — Agricultural, Construction and International.
Revenues in the reported quarter were up 20% year over year to $372.7 million. Revenues in the Agriculture Segment improved 19% year over year to $229.6 million. Construction Segment’s revenues were up 14% to $68.6 million, while the International Segment‘s revenues surged 32% to $74.5 million from first-quarter fiscal 2021.
Adjusted pre-tax income in the Agriculture Segment soared 81% to $11.2 million. The Construction segment reported a pre-tax income of $0.1 million, against an adjusted pre-tax loss of $2.7 million in the quarter last year. International Segment’s adjusted pre-tax income increased 44% to $2.7 million.
Adjusted earnings per share was 46 cents in the quarter compared with 15 cents in the year-ago quarter.
For fiscal 2022, the company expects the Agriculture segment’s revenues to be up 15-20%, compared with its previous guidance of growth of 10-15%. Construction segment’s revenue growth is projected to be 2-7% in contrast to the previous expectation of a decline of 0-5%. International Segment’s revenues are expected to be up 17-22% in fiscal 2022, up from the prior guidance of 12-17% growth. The company expects earnings per share for fiscal 2022 between $1.65 and $1.85, up from the previous range of $1.25 to $1.45. The mid-point of the new guidance projects year-over-year growth of 39%.
Price and Consensus
This agriculture and construction equipment seller is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of -13.3%. Revenues are expected to be $334.8 million, up 7.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Titan Machinery, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TITN going forward to see if this recent jump can turn into more strength down the road.
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Titan Machinery (TITN) Soars 23.9%: Is Further Upside Left in the Stock?
Titan Machinery (TITN - Free Report) shares rallied 23.9% in the last trading session to close at $31.67. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.3% loss over the past four weeks.
An impressive first-quarter fiscal 2022 (ended Apr 30, 2021) performance and a raised guidance for fiscal 2022 fueled the spike in Titan Machinery’s share price. The company witnessed a whopping 207% improvement in earnings from the last year quarter, courtesy of increased equipment sales across all the segments — Agricultural, Construction and International.
Revenues in the reported quarter were up 20% year over year to $372.7 million. Revenues in the Agriculture Segment improved 19% year over year to $229.6 million. Construction Segment’s revenues were up 14% to $68.6 million, while the International Segment‘s revenues surged 32% to $74.5 million from first-quarter fiscal 2021.
Adjusted pre-tax income in the Agriculture Segment soared 81% to $11.2 million. The Construction segment reported a pre-tax income of $0.1 million, against an adjusted pre-tax loss of $2.7 million in the quarter last year. International Segment’s adjusted pre-tax income increased 44% to $2.7 million.
Adjusted earnings per share was 46 cents in the quarter compared with 15 cents in the year-ago quarter.
For fiscal 2022, the company expects the Agriculture segment’s revenues to be up 15-20%, compared with its previous guidance of growth of 10-15%. Construction segment’s revenue growth is projected to be 2-7% in contrast to the previous expectation of a decline of 0-5%. International Segment’s revenues are expected to be up 17-22% in fiscal 2022, up from the prior guidance of 12-17% growth. The company expects earnings per share for fiscal 2022 between $1.65 and $1.85, up from the previous range of $1.25 to $1.45. The mid-point of the new guidance projects year-over-year growth of 39%.
Price and Consensus
This agriculture and construction equipment seller is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of -13.3%. Revenues are expected to be $334.8 million, up 7.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Titan Machinery, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TITN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>