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Titan Machinery (TITN) to Report Q2 Earnings: What's in Store?

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Titan Machinery Inc. (TITN - Free Report) is scheduled to report second-quarter fiscal 2025  results (ended Jul 31, 2024) before market open on Aug 29.

The Zacks Consensus Estimate for TITN’s fiscal second-quarter revenues is pegged at $633 million, indicating a 1.5% fall from the year-ago reported figure.

The consensus estimate for earnings is pegged at 27 cents per share. The Zacks Consensus Estimate for Titan Machinery’s fiscal second-quarter earnings has moved down 56% in the past 60 days. The estimate indicates a year-over-year decline of 80.4%.

 

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Image Source: Zacks Investment Research

 

Titan Machinery’s Earnings Surprise History

The company’s earnings beat the Zacks Consensus Estimates in two of the trailing four quarters and missed in the other two, the average surprise being a negative 6.3%.

 

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Image Source: Zacks Investment Research

 

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 are reported with our Earnings ESP Filter.

Earnings ESP: Titan Machinery has an Earnings ESP of -145.28%.

Zacks Rank: TITN currently carries a Zacks Rank of 4 (Sell).

Factors Likely to Have Shaped TITN’s Q2 Performance

Titan Machinery’s results for the fiscal second quarter are likely to reflect the impacts of incrementally softer retail demand.

Commodity prices for significant cash crops in the company's footprint have been consistently dropping since the beginning of the year. The metric fell an additional 10-20% in the fiscal second quarter.  The inconsistent growing conditions across Titan Machinery's footprint have had an adverse impact on farmer sentiment, resulting in decreased agricultural equipment revenues. Lower commodity prices and persistently high interest rates are expected to have impacted the Agriculture segment's revenues in the fiscal second quarter. 

The Zacks Consensus Estimate for Equipment’s revenues for the fiscal second quarter is pegged at $464 million, suggesting a decline of 3.3% from the year-ago quarter’s reported figure. 

The Zacks Consensus Estimate for Rental’s revenues for the fiscal second quarter is pegged at $11.45 million, suggesting a decline of 0.1% from the year-ago quarter’s reported figure. 

Despite the difficult environment, the company has been taking cost-cutting initiatives and strengthening its customer customer care strategy to grow parts and service businesses. The Zacks Consensus Estimate for Parts’ revenues for the fiscal second quarter is pegged at $110 million, suggesting a rise from the year-ago quarter’s reported number of $108 million. The Zacks Consensus Estimate for Service’s revenues for the fiscal second quarter is pegged at $48 million, implying growth from the year-ago quarter’s reported figure of $43 million.

Titan Machinery’s Price Performance

Titan Machinery’s shares have lost 50.7% in the past year against the industry’s 6.9% growth.

 

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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:

Abercrombie & Fitch (ANF - Free Report) , scheduled to release second-quarter 2024 earnings on Aug 28, currently has an Earnings ESP of +3.50% and a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ANF’s earnings is pegged at $2.13 per share, indicating a significant jump of 93.64% from the prior-year quarter’s reported figure. It has a trailing four-quarter average earnings surprise of 210%.

The J. M. Smucker Co. (SJM - Free Report) , scheduled to release first-quarter fiscal 2025 earnings on Aug 28, currently has an Earnings ESP of +1.89% and a Zacks Rank of 3. 

The consensus estimate for SJM’s earnings for the first quarter of fiscal 2025 is pegged at $2.18 per share. It has a trailing four-quarter average surprise of 8.9%.

Costco Wholesale Corporation (COST - Free Report) , scheduled to release fourth-quarter fiscal 2024 earnings on Sep 26, currently has an Earnings ESP of +0.67% and a Zacks Rank of 3.

The Zacks Consensus Estimate for COST’s earnings for the fiscal fourth quarter is pegged at $5.02, suggesting a year-over-year increase of 3.3%. It has a trailing four-quarter average earnings surprise of 2.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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