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The Gory Details of Titan Machinery's Earnings Miss

By Seth Jayson – Updated Apr 10, 2017 at 1:52PM

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Just the facts, Fool.

Titan Machinery (Nasdaq: TITN) reported earnings on April 10. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 31 (Q4), Titan Machinery beat expectations on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share contracted.

Margins shrank across the board.

Revenue details
Titan Machinery booked revenue of $784.5 million. The eight analysts polled by S&P Capital IQ expected to see sales of $703.2 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $607.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.73. The nine earnings estimates compiled by S&P Capital IQ predicted $0.92 per share. GAAP EPS of $0.73 for Q4 were 12% lower than the prior-year quarter's $0.83 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 13.3%, 200 basis points worse than the prior-year quarter. Operating margin was 4.1%, 130 basis points worse than the prior-year quarter. Net margin was 2.0%, 90 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $480.5 million. On the bottom line, the average EPS estimate is $0.22.

Next year's average estimate for revenue is $2.39 billion. The average EPS estimate is $2.14.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Titan Machinery is outperform, with an average price target of $32.98.

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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. The Motley Fool has no position in any of the stocks mentioned. 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.

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