Why Titan International's Shares Dropped

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 equipment retailer Titan International (NYSE: TWI ) fell 16% today after the company reported earnings.

So what: Revenue jumped 23% to $493.6 million but the company said it lost $3.5 million, or $0.07 per share, in the quarter on one-time costs related to buying Titan Europe PLC. After adjustments, the company made a profit of $0.09 per share, which fell well short of the $0.47 per share analysts estimated.

Now what: Everything was disappointing this quarter as demand fell well short of expectations. Let's keep in mind that the company did grow and the stock still trades at just eight times forward earnings estimates. I wouldn't be a panic seller here but I'd like to see improvement from both the mining and farming sectors, which will drive demand going forward, before I buy in.

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

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Fool contributor Travis Hoium has no position in any stocks mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no position in any of the stocks mentioned. 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.

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