Titan Machinery (TITN) to Post Q2 Earnings: What's in Store?
Titan Machinery Inc. TITN is scheduled to report second-quarter fiscal 2022 results (ended Jul 31, 2021) before the market opens on Aug 26.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $364.5 million, indicating an improvement of 20% from the prior-year quarter. The consensus mark for earnings stands at 45 cents per share, suggesting growth of 55% from the year-ago quarter. The earnings estimates have gone up 2% over the past 60 days.
Q1 Results
In the last reported quarter, Titan Machinery’s revenues and earnings per share improved 20% and 207% respectively. The company beat the Zacks Consensus Estimate on both the counts.
The company has surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 350%.
Titan Machinery Inc. Price and EPS Surprise
Titan Machinery Inc. price-eps-surprise | Titan Machinery Inc. Quote
Factors to Note
The company’s fiscal second-quarter results are likely to reflect improved demand in its end markets. The company’s continued success in controlling operating expense and reducing interest expenses might have favored the to-be-reported quarter’s performance.
Solid agriculture market fundamentals including higher farm income and rising corn, soybean prices and wheat prices may have driven Titan Machinery’s Agriculture segment’s fiscal second-quarter performance. Demand for equipment upgrades along with the need to replace aged fleet may have contributed to revenues as well. Strong part and service performance has been driving the segment’s revenues lately. The Zacks Consensus Estimate for the Agriculture segment’s second-quarter revenues stands at $228 million, indicating year-over-year growth of 35%.
The Construction segment’s revenues in the to-be-reported quarter is likely to reflect strong demand for new and used construction equipment due to the low interest rates scenario, strength in the housing market, and recovery in non-residential sector. The consensus mark for the Construction segment’s second-quarter revenues is pegged at $83 million, indicating growth of 6% from the year-ago quarter.
In the International segment, improved farmer sentiment with strength in global commodity prices and growing preference for technology and precision may have contributed to revenues in the quarter under review. Supply chain issues might have dented these gains somewhat. For the International segment, the consensus mark for revenues is pegged at $67 million, indicating an improvement of 18% from the prior-year reported figure of $57 million.
For the to-be-reported quarter, the Zacks Consensus Estimate for operating profit for the Agriculture segment is pegged at $12.4 million, suggesting year-over-year surge of 84% from the prior-year quarter. The Construction segment is anticipated to report an operating profit of $0.7 million, suggesting a decline of 49% from the year-ago quarter. The Zacks Consensus Estimate for the International segment’s operating profit is pegged at $0.2 million, which suggests a turnaround performance from the year ago quarter’s operating loss of $0.43 million.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Titan Machinery this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Titan Machinery is 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Price Performance
Image Source: Zacks Investment Research
Titan Machinery’s shares have soared 120.2% in the past year compared with the industry’s rally of 61.8%.
Stocks Poised to Beat Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post earnings beat this quarter:
Burlington Stores, Inc. BURL has an Earnings ESP of +20.61% and a Zacks Rank of 1 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
DICKS Sporting Goods, Inc. DKS currently has a Zacks Rank #2 and an Earnings ESP of +1.66%.
Nordstrom, Inc. JWN has an Earnings ESP of +18.69% and a Zacks Rank #3, at present.
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Titan Machinery Inc. (TITN) : Free Stock Analysis Report
Nordstrom, Inc. (JWN) : Free Stock Analysis Report
DICKS Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
Burlington Stores, Inc. (BURL) : Free Stock Analysis Report
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