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.
Is Titan International the right retailer for your portfolio? Learn how to maximize your investment income and ""Secure Your Future With 9 Rock-Solid Dividend Stocks,"" including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add Titan International to My Watchlist.
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. 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.