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What: Shares of Titan Machinery
So what: Sales rose 33% at the agriculture and construction retailer to $421.7 million, topping estimates of $393.4 million in revenue from analysts. But the bottom line is where Titan fell short, posting earnings per share of $0.36, $0.02 short of estimates.
Now what: The higher sales were followed by higher cost, primarily blamed on a greater mix of construction revenue. Investors may be disappointed with today's profit, but if we take a step back, management is expecting fiscal 2013 profit of $2.55-$2.75 per share, on par with estimates. This also puts the stock at about a 10 P/E, a great price for a company growing revenue and earnings. I think the stock can recover from today's fall and outperform long-term.
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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.
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