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Titan Machinery (TITN) to Report Q3 Earnings: What's in Store?

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Titan Machinery Inc. (TITN - Free Report) is scheduled to report third-quarter fiscal 2023 results (ended Oct 31, 2023) before market open on Nov 30.

Q3 Estimates

The Zacks Consensus Estimate for TITN’s third-quarter revenues is pegged at $723.3 million, indicating an improvement of 8.2% from the prior-year quarter’s reported figure. The consensus mark for earnings is $1.51 per share, suggesting a decline of 17.5% from the year-ago quarter’s actual. Earnings estimates have been unchanged over the past 30 days.

Q2 Results

In the last reported quarter, Titan Machinery’s revenues and earnings per share improved from the respective year-ago fiscal quarter’s tallies. Both the top line and bottom line beat the respective Zacks Consensus Estimate.

TITN’s earnings have surpassed the consensus estimate in three of the trailing four quarters, while missing in one quarter, the average surprise being 18.5%.

Titan Machinery Inc. Price and EPS Surprise

 

Titan Machinery Inc. Price and EPS Surprise

Titan Machinery Inc. price-eps-surprise | Titan Machinery Inc. Quote

Factors to Note

Titan Machinery’s results for the fiscal third quarter are likely to reflect improved demand in its end markets. TITN’s solid inventory position and continued success in reducing operating expenses and interest expenses are expected to have helped offset higher input costs and the impact of supply-chain headwinds in the quarter.
 
The Zacks Consensus Estimate for the Agriculture segment’s revenues for the fiscal third quarter is pegged at $543 million, suggesting growth of 10% from the year-ago fiscal quarter’s reported figure. The segment’s results are likely to have been benefited from the favorable demand in the agricultural sector as well as from recent acquisitions.
 
The estimated net sales of the Construction segment are $91 million for the to-be-reported quarter. This indicates a 6% rise from the net sales of $86 million reported in the previous year’s fiscal quarter, which is expected to have been supported by robust construction activity through the quarter.
 
For the International segment, the consensus mark for revenues is pegged at $95 million, up 7% from the prior-year fiscal quarter’s $89 million. The company is expected to have witnessed year-over-year growth in parts revenues as well as revenues generated from rental and services.  The Zacks Consensus Estimate for parts revenues for the to-be-reported quarter is $118 million, suggesting 8% year-over-year growth. The estimate for rental revenues is currently $15 million, projecting 24% year-over-year growth. Revenues from services are expected to be around $44 million, indicating 12% year-over-year growth.

What the Zacks Model Indicates

Our proven model does not conclusively predict an earnings beat for Titan Machinery this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here, as you will see below.
 
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
 
Earnings ESP: Titan Machinery has an Earnings ESP of 0.00%.
 
Zacks Rank: Titan Machinery currently carries a Zacks Rank of 2.

Price Performance

Titan Machinery’s shares have lost 43% in the past year against the industry’s 12.8% growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Stocks Poised to Beat Estimates

Here are some companies, which according to our model, have the right combination of elements to beat on earnings in the to-be-reported quarter:
 
Core & Main (CNM - Free Report) has an Earnings ESP of +3.86% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CNM’s fiscal third-quarter 2023 earnings is pegged at 69 cents per share, suggesting a 4.6% increase from the year-ago quarter’s level.
 
The consensus estimate for quarterly revenues is pegged at $1.87 billion, suggesting growth of around 3% from the prior-year fiscal period’s tally. CNM has a trailing four-quarter average surprise of 3.9%.

AutoZone (AZO - Free Report) currently has an Earnings ESP of +1.46% and a Zacks Rank of 3.

The Zacks Consensus Estimate for AZO’s fiscal first-quarter 2024 earnings is pegged at $30.82 per share, suggesting a 12.3% increase from the year-ago quarter’s level.
 
The consensus estimate for quarterly revenues is pegged at $4.17 billion, suggesting growth of 4.5% from the prior-year fiscal period’s tally. AZO has a trailing four-quarter average surprise of 9.9%.

lululemon athletica (LULU - Free Report) has an Earnings ESP of +0.19% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for LULU’s revenues of $2.2 billion for the third quarter of 2023 indicates a 17.8% rise from the prior-year quarter’s reading.
 
The consensus estimate for the quarter’s earnings is pegged at $2.27 per share, suggesting 13.5% growth from the year-earlier quarter’s reported number. LULU has a trailing four-quarter average surprise of 6.8%.
 
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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