Titan Machinery Inc. (NASDAQGS:TITN) is scheduled to release financial results for the third quarter ended October 31, 2019, on Tuesday, November 26, 2019. The report will be followed by an investor conference call at 7:30 a.m. CT (8:30 a.m. ET).
The company is expected to report earnings of $0.48/share on revenue of $371.6 million. The consensus earnings per share (EPS) of $0.48/share is based on a poll of 4 analysts and represents a decline of -2.0% over the same quarter last year when the company reported earnings of $0.49/share.
The revenue forecast of $371.6 million based on a poll of 4 analysts implies a year-over-year (YoY) growth of 2.2%. Last year the company reported $363.6 million in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters. What are your expectations from Titan Machinery for earnings this quarter? Let us know in the comments!
One question we always consider here at the Bankers’ Tribune is how important are earnings reports to Titan Machinery’s stock price performance? It’s more important for some companies than for others.
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending July 31, 2019, the stock price reacted by falling by -11.0%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
Fundamentals And Technical Analysis
Titan Machinery is currently trading at $18.02/share, up 1.5% for the day. The company is trading at approximately 82.4% of its 52-week high of $21.88/share. The company’s stock price is up 19.7% since the last earnings report and up 1.5% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 66.02 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 28.5x and a forward P/E multiple of 21.0x. Titan Machinery’s current share price also implies a price-to-book (P/B) multiple of 1.2x. The following table summarizes some other key fundamental ratios:
|Last Fiscal Period||FY2020.Q2|
|Period End Date||July 31, 2019|
|Stock Price (Current)||$18.02|
|P/E Ratio (Fwd)||21.0x|
|Total Debt to Capital (%)||60.6%|
|Levered Free Cash Flow||$35.842 million|
|Enterprise Value / EBITDA||17.5x|
Company Profile: Titan Machinery Inc.
Titan Machinery Inc. is a small-cap stock with a market capitalization of $390.3 million and a total enterprise value of $942.1 million. The company operates in the Industrials sector and Trading Companies & Distributors industry.
Titan Machinery Inc. owns and operates a network of full-service agricultural and construction equipment stores. It operates through three segments: Agriculture, Construction, and International. The company sells new and used equipment, including agricultural and construction equipment manufactured under the CNH Industrial family of brands, as well as equipment from various other manufacturers. Its agricultural equipment includes machinery and attachments for use in the production of food, fiber, feed grain, and renewable energy; and home and garden applications, as well as maintenance of commercial, residential, and government properties. The company’s construction equipment comprises of heavy construction machinery, light industrial machinery for commercial and residential construction, road and highway construction machinery, and mining operations equipment.
It also sells maintenance and replacement parts. In addition, the company offers repair and maintenance services that include warranty repairs, off-site and on-site repair services, scheduling off-season maintenance services, and notifying customers of periodic service requirements; and training programs to customers. Further, it rents equipment; and provides ancillary equipment support services.
The company operates in Arizona, Colorado, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, South Dakota, Wisconsin, and Wyoming, the United States; and Bulgaria, Germany, Romania, Serbia, and Ukraine, Europe.
Titan Machinery Inc. was founded in 1980 and is headquartered in West Fargo, North Dakota.