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Titan Machinery, Inc. Message Board

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  • froddoislost froddoislost Apr 15, 2010 2:59 PM Flag

    Overdone Down on Earnings Report

    Here's what happened; they missed on earnings.

    Further; they earned less this last year than in the preceding year. That has implications for earnings growth.

    Further; the notes strongly imply that their revenue growth relies on acquisitions. That is not as good as 'organic' or same store sales growth.

    Finally; they threw the CE guys under the bus. Closing Kalispel, can't wait to see what happens with the Midland locations.

    Not to say they're doing wrong; the ag locations they've bought have mostly improved, but I'm not sure they're as committed to CE, esp. with comments like that. Be really interested to watch what actually happens to absorption. They either sink or swim on that number. Should get more toward 90% than it's current 75% to be successful, at least according to Weber.

    All for now.

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    • Revenue grew 33%, exceeding analyst expectations. Profit grew 6%, which was below expectations. Thirty percent growth without adding a lot of debt and still making a good profit--well done.

      The company bought six stores and opened two (organic growth).

      If Titain was selling teen clothing, the stock would be closer to $20 on these facts. Factor in the revenue growth rate, the stock would be pushing $30.

      Titain management is doing a great job. The business is strong and the fundamentals support a stock price much higher. The 12% drop after earnings is overdone.

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