The 10-second takeaway
For the quarter ended Jan. 31 (Q4), Titan Machinery crushed expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.
Margins increased across the board.
Titan Machinery booked revenue of $607.0 million. The five analysts polled by S&P Capital IQ looked for a top line of $438.8 million on the same basis. GAAP reported sales were 65% higher than the prior-year quarter's $368.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.84. The five earnings estimates compiled by S&P Capital IQ averaged $0.53 per share on the same basis. GAAP EPS of $0.85 for Q4 were 52% higher than the prior-year quarter's $0.56 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.3%, 10 basis points better than the prior-year quarter. Operating margin was 5.3%, 60 basis points better than the prior-year quarter. Net margin was 2.9%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $394.9 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $2.01 billion. The average EPS estimate is $2.65.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 466 members out of 486 rating the stock outperform, and 20 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Titan Machinery a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Titan Machinery is buy, with an average price target of $32.42.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.