We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Titan International (TWI) Q4 Earnings & Sales Beat, Rise Y/Y
Read MoreHide Full Article
Titan International delivered fourth-quarter 2021 adjusted earnings per share (EPS) of 39 cents that beat the Zacks Consensus Estimate of 18 cents by a margin of 117%. The bottom-line figure also marked a turnaround from the loss per share of 10 cents reported in the prior-year quarter. The strong performance was driven by higher volumes, stemming from increased demand across all segments, particularly agriculture, along with pricing.
Including one-time items, Titan International posted EPS of 44 cents against the year-ago quarter’s loss of 28 cents per share.
Revenues increased 49% year over year to $488 million in the fourth quarter. The top line surpassed the Zacks Consensus Estimate of $442 million.
Titan International, Inc. Price, Consensus and EPS Surprise
Cost of sales increased 47% year over year to $425 million in the fourth quarter. Gross profit soared 69% year over year to $62 million in the reported quarter. The gross margin came in at 12.8%, indicating a 140-basis-point expansion year over year.
Selling, general and administrative expenses were $33 million, down 11% from the year-ago quarter’s $37 million. Adjusted EBITDA surged 109% year over year to $36 million. The adjusted EBITDA margin came in at 7.4% compared with the year-earlier quarter’s 5.3%.
Segmental Performance
Sales in the Agricultural segment were up 64% year over year to $265 million in the October-December period. The improvement was driven by strong demand across all geographic markets, as well as pricing actions, to counter cost inflation. Demand in the agriculture markets reflects improved farmer income and the need to replace an aging large-equipment fleet. The segment reported an operating income of $23.4 million compared with the prior-year quarter’s $4.4 million on higher sales volume and cost-reduction initiatives executed across global production facilities.
Sales in the Earthmoving/Construction segment increased 33% year over year to $183 million on higher volumes along with pricing. The segment witnessed higher volumes due to improvements in global economic conditions and recovery in construction markets. The segment reported an operating profit of $6.9 million against the prior-year quarter’s loss of $13.4 million. Higher sales volume and improved production efficiencies, as a result of the management actions taken in recent years, led to improved profitability.
The Consumer segment’s sales were $39 million, up 41% from $28 million reported in the year-ago period. Higher volume related to general market improvements, as well as increased pricing, led to higher sales. The segment’s operating income was $2.5 million compared with the year-ago quarter’s income of $0.04 million. Higher volume and the positive impacts on plant efficiencies, particularly in Latin America, led to improved segmental profits.
Financial Position
Titan International reported cash and cash equivalents of $98 million at the end of 2021, down from $117 million at 2020-end. The company generated $10.7 million in cash from operating activities in 2021 compared with $57 million in 2020. TWI’s total debt stood at $485 million at the end of 2021, up from $465 million at the end of 2020.
2021 Performance
Titan International reported an adjusted EPS of 85 cents in 2021 against a loss of 55 cents reported in the prior year. Earnings beat the Zacks Consensus Estimate of 64 cents. Including one-time items, the bottom line was at earnings of 79 cents against a loss of 99 cents reported in 2020.
Sales were up 41% year over year to $1.78 billion. The top line surpassed the Zacks Consensus Estimate of $1.73 billion.
Guidance
Titan International expects to deliver revenues of more than $2 billion in 2022. The company expects an adjusted EBITDA of $175 million for the year.
Price Performance
Image Source: Zacks Investment Research
Titan International’s shares have gained 42.7% in the past year compared with the industry’s growth of 1.9%.
Some other top-ranked stocks in the Industrial Products sector are Applied Industrial Technologies, Inc. (AIT - Free Report) , Dover Corporation (DOV - Free Report) and Silgan Holdings Inc. (SLGN - Free Report) . While AIT sports a Zacks Rank #1, DOV and SLGN carry a Zacks Rank #2 (Buy) at present.
Applied Industrial Technologies reported adjusted EPS of $1.46 in second-quarter fiscal 2022 (ended Dec 31, 2020), up 49% year over year and beating the Zacks Consensus Estimate of $1.09. AIT has a trailing four-quarter earnings surprise of 27.9%, on average.
Applied Industrial Technologies has an expected earnings growth rate of 24.8% for fiscal 2022. The Zacks Consensus Estimate for fiscal 2022 earnings has moved up 9.4% in the past 60 days. AIT’s shares have appreciated 18% in a year.
Dover’s fourth-quarter 2021 adjusted EPS increased 15% year over year to $1.78, beating the Zacks Consensus Estimate of $1.66. DOV has a trailing four-quarter earnings surprise of 12.3%, on average.
Dover has an estimated earnings growth rate of 12.7% for 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 5%. DOV’s shares have rallied around 25% in a year.
Silgan Holdings’ fourth-quarter 2021 adjusted EPS increased 32% year over year to a record 79 cents, beating the Zacks Consensus Estimate of 73 cents. SLGN has a trailing four-quarter earnings surprise of 3.8%, on average.
Silgan has a projected earnings growth rate of 13.5% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 3% in the past 60 days. In a year, SLGN has appreciated 6%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Titan International (TWI) Q4 Earnings & Sales Beat, Rise Y/Y
Titan International delivered fourth-quarter 2021 adjusted earnings per share (EPS) of 39 cents that beat the Zacks Consensus Estimate of 18 cents by a margin of 117%. The bottom-line figure also marked a turnaround from the loss per share of 10 cents reported in the prior-year quarter. The strong performance was driven by higher volumes, stemming from increased demand across all segments, particularly agriculture, along with pricing.
Including one-time items, Titan International posted EPS of 44 cents against the year-ago quarter’s loss of 28 cents per share.
Revenues increased 49% year over year to $488 million in the fourth quarter. The top line surpassed the Zacks Consensus Estimate of $442 million.
Titan International, Inc. Price, Consensus and EPS Surprise
Titan International, Inc. price-consensus-eps-surprise-chart | Titan International, Inc. Quote
Operational Update
Cost of sales increased 47% year over year to $425 million in the fourth quarter. Gross profit soared 69% year over year to $62 million in the reported quarter. The gross margin came in at 12.8%, indicating a 140-basis-point expansion year over year.
Selling, general and administrative expenses were $33 million, down 11% from the year-ago quarter’s $37 million. Adjusted EBITDA surged 109% year over year to $36 million. The adjusted EBITDA margin came in at 7.4% compared with the year-earlier quarter’s 5.3%.
Segmental Performance
Sales in the Agricultural segment were up 64% year over year to $265 million in the October-December period. The improvement was driven by strong demand across all geographic markets, as well as pricing actions, to counter cost inflation. Demand in the agriculture markets reflects improved farmer income and the need to replace an aging large-equipment fleet. The segment reported an operating income of $23.4 million compared with the prior-year quarter’s $4.4 million on higher sales volume and cost-reduction initiatives executed across global production facilities.
Sales in the Earthmoving/Construction segment increased 33% year over year to $183 million on higher volumes along with pricing. The segment witnessed higher volumes due to improvements in global economic conditions and recovery in construction markets. The segment reported an operating profit of $6.9 million against the prior-year quarter’s loss of $13.4 million. Higher sales volume and improved production efficiencies, as a result of the management actions taken in recent years, led to improved profitability.
The Consumer segment’s sales were $39 million, up 41% from $28 million reported in the year-ago period. Higher volume related to general market improvements, as well as increased pricing, led to higher sales. The segment’s operating income was $2.5 million compared with the year-ago quarter’s income of $0.04 million. Higher volume and the positive impacts on plant efficiencies, particularly in Latin America, led to improved segmental profits.
Financial Position
Titan International reported cash and cash equivalents of $98 million at the end of 2021, down from $117 million at 2020-end. The company generated $10.7 million in cash from operating activities in 2021 compared with $57 million in 2020. TWI’s total debt stood at $485 million at the end of 2021, up from $465 million at the end of 2020.
2021 Performance
Titan International reported an adjusted EPS of 85 cents in 2021 against a loss of 55 cents reported in the prior year. Earnings beat the Zacks Consensus Estimate of 64 cents. Including one-time items, the bottom line was at earnings of 79 cents against a loss of 99 cents reported in 2020.
Sales were up 41% year over year to $1.78 billion. The top line surpassed the Zacks Consensus Estimate of $1.73 billion.
Guidance
Titan International expects to deliver revenues of more than $2 billion in 2022. The company expects an adjusted EBITDA of $175 million for the year.
Price Performance
Image Source: Zacks Investment Research
Titan International’s shares have gained 42.7% in the past year compared with the industry’s growth of 1.9%.
Zacks Rank and Other Stocks to Consider
Titan International currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other top-ranked stocks in the Industrial Products sector are Applied Industrial Technologies, Inc. (AIT - Free Report) , Dover Corporation (DOV - Free Report) and Silgan Holdings Inc. (SLGN - Free Report) . While AIT sports a Zacks Rank #1, DOV and SLGN carry a Zacks Rank #2 (Buy) at present.
Applied Industrial Technologies reported adjusted EPS of $1.46 in second-quarter fiscal 2022 (ended Dec 31, 2020), up 49% year over year and beating the Zacks Consensus Estimate of $1.09. AIT has a trailing four-quarter earnings surprise of 27.9%, on average.
Applied Industrial Technologies has an expected earnings growth rate of 24.8% for fiscal 2022. The Zacks Consensus Estimate for fiscal 2022 earnings has moved up 9.4% in the past 60 days. AIT’s shares have appreciated 18% in a year.
Dover’s fourth-quarter 2021 adjusted EPS increased 15% year over year to $1.78, beating the Zacks Consensus Estimate of $1.66. DOV has a trailing four-quarter earnings surprise of 12.3%, on average.
Dover has an estimated earnings growth rate of 12.7% for 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 5%. DOV’s shares have rallied around 25% in a year.
Silgan Holdings’ fourth-quarter 2021 adjusted EPS increased 32% year over year to a record 79 cents, beating the Zacks Consensus Estimate of 73 cents. SLGN has a trailing four-quarter earnings surprise of 3.8%, on average.
Silgan has a projected earnings growth rate of 13.5% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 3% in the past 60 days. In a year, SLGN has appreciated 6%.