The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Titan International whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Titan International chalked up revenue of $493.6 million. The five analysts polled by S&P Capital IQ predicted revenue of $584.0 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $402.9 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 $0.09. The five earnings estimates compiled by S&P Capital IQ averaged $0.47 per share. Non-GAAP EPS of $0.09 for Q4 were 76% lower than the prior-year quarter's $0.37 per share. GAAP EPS were -$0.07 for Q4 versus $0.29 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 9.7%, 430 basis points worse than the prior-year quarter. Operating margin was -0.2%, 500 basis points worse than the prior-year quarter. Net margin was -0.7%, 430 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $643.7 million. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $2.62 billion. The average EPS estimate is $2.70.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 211 members out of 232 rating the stock outperform, and 21 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give Titan International 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 International is buy, with an average price target of $28.95.
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