The 10-second takeaway
For the quarter ended April 30 (Q1), Titan Machinery beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share contracted.
Gross margins expanded, operating margins contracted, and net margins shrank.
Titan Machinery notched revenue of $421.7 million. The five analysts polled by S&P Capital IQ anticipated sales of $393.4 million on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $318.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.36. The five earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. GAAP EPS of $0.36 for Q1 were 10% lower than the prior-year quarter's $0.40 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 16.7%, 10 basis points better than the prior-year quarter. Operating margin was 3.7%, 50 basis points worse than the prior-year quarter. Net margin was 1.8%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $411.3 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $2.00 billion. The average EPS estimate is $2.65.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 484 members out of 505 rating the stock outperform, and 21 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give Titan Machinery a green thumbs-up, and two 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 $40.79.
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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.