Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Titan Machinery's Shares Dropped

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of farm equipment retailer Titan Machinery (Nasdaq: TITN  ) fell 22% today after the company released earnings.

So what: Revenue was up 32% in the fiscal second quarter to $410.1 million, and the company made a profit of $5.2 million, or $0.25 per share. Analysts had expected $401.9 million in revenue and earnings per share of $0.43.

What really hit investors was the company's reduced earnings guidance for the full year, which management now expects to be between $2.10 and $2.30, down $0.45 from its previous guidance.

Now what: This year's drought in the Midwest is expected to hurt sales, as farmers are expected to preserve cash in 2013. This isn't good for Titan Machinery, but the reaction from the market today is way overdone, in my opinion. Shares now trade at less than 10 times full-year earnings, and I think this will be a short-term blip in performance for the company, providing long-term upside for the stock.

Interested in more info on Titan Machinery? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 10, 2012, at 2:41 PM, mookdog7 wrote:

    Agree what an opportunity, TITN areas were not hit as hard as IL or Ind. their farmers will make more money this year, but as always the street panics and over reacts, plus when the stop loss selling gets hit, it just rolls up on itself... TITN will see 24 within the next few day, funny how firms that lose money go up when the don't lose as much. TITN profitable in great markets.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2011811, ~/Articles/ArticleHandler.aspx, 10/22/2016 3:27:17 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 6 hours ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
TITN $9.77 Down -0.27 -2.69%
Titan Machinery CAPS Rating: **