Titan Machinery (TITN) to Report Q2 Earnings: What's in Store?
Titan Machinery Inc. TITN is scheduled to report second-quarter fiscal 2023 results (ended Jul 31, 2023) before market open on Aug 31.
Q2 Estimates
The Zacks Consensus Estimate for TITN’s second-quarter revenues is currently pegged at $599.7 million, indicating an improvement of 20.8% from the prior-year fiscal quarter’s reported figure. The consensus mark for earnings stands at $1.15 per share, suggesting growth of 4.6% from the year-ago fiscal quarter’s reading. The earnings estimates have moved down 2% over the past 60 days.
Q1 Results
In the last reported quarter, Titan Machinery’s revenues and earnings per share improved from the respective year-ago fiscal quarter’s tallies. While TITN’s earnings beat the Zacks Consensus Estimates, revenues missed the same.
TITN’s earnings surpassed the consensus estimate in each of the trailing four quarters, the average surprise being 10%.
Titan Machinery Inc. Price and EPS Surprise
Titan Machinery Inc. price-eps-surprise | Titan Machinery Inc. Quote
Factors to Note
Titan Machinery’s results for the fiscal second quarter are likely to reflect improved demand in its end markets. TITN’s solid inventory position and continued success in reducing operating expenses and lowering interest expenses are expected to have helped offset higher input costs and the impact of supply-chain headwinds in the quarter.
The Zacks Consensus Estimate for the Agriculture segment’s revenues for the fiscal second quarter is pegged at $451 million, suggesting growth of 29% from the year-ago fiscal quarter’s reported figure. The segment’s results are likely to benefit from the favorable demand in the agricultural sector as well as recent acquisitions. Strong performance has been driving the segment’s revenues lately. Income before tax for this segment is expected to be $26.7 million compared with the reported income of $24.9 million in last year's comparable fiscal quarter.
The estimated net sales of the Construction segment are $72 million for the to-be-reported quarter. This indicates a 2% rise from the net sales of $70 million reported in the previous year’s fiscal quarter. The sales are likely to be impacted by the lost contributions from the divestiture of consumer products stores in North Dakota. Nevertheless, this is expected to have been somewhat negated by the strong equipment demand, strength in parts, service and rental. Income before tax for this segment is estimated to be $4.3 million, suggesting a 10% increase from the previous fiscal year's quarterly reading.
For the International segment, the consensus mark for revenues is pegged at $81 million, up 4% from the prior-year fiscal quarter’s $78 million. This segment is likely to face supply-chain challenges, which are expected to affect the results. The estimated income before taxes for this segment is $4.70 million compared with the year-ago fiscal quarter’s $5.87 million.
The company is expected to witness year-over-year growth in parts revenues as well as revenues generated from rental and services. The Zacks Consensus Estimate for parts revenues for the to-be-reported quarter is $100 million, suggesting 28% year-over-year growth. The estimate for rental revenues is currently $12.1 million, projecting 18% year-over-year growth. Revenues from services are expected to be $43 million, indicating 29% year-over-year growth.
What the Zacks Model Indicates
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 before they’re reported with our Earnings ESP Filter.
Earnings ESP: Titan Machinery has an Earnings ESP of 0.00%.
Zacks Rank: Titan Machinery currently carries a Zacks Rank of 3.
Price Performance
Titan Machinery’s shares have decreased 10.7% in the past year against the industry’s 22.2% growth.
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Stocks Poised to Beat Estimates
Here are some companies, which according to our model, have the right combination of elements to beat on earnings in the to-be-reported quarter:
The J. M. Smucker Co. SJM currently has an Earnings ESP of +0.24% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for SJM’s fiscal first-quarter 2024 earnings is pegged at $2.07 per share, suggesting a 24% increase from the year-ago quarter’s level.
The consensus estimate for quarterly revenues is pegged at $1.84 billion, suggesting a decline of 1.7% from the prior-year fiscal period’s tally. SJM has a trailing four-quarter average surprise of 14%.
Five Below FIVE has an Earnings ESP of +1.21% and a Zacks Rank of 2. The Zacks Consensus Estimate for FIVE’s revenues of $760 million for the second quarter of 2023 indicates growth of 13.6% from the prior-year quarter’s reading.
The consensus estimate for FIVE’s second-quarter earnings is pegged at 83 cents per share, suggesting 12% growth from the year-earlier quarter’s reported number. FIVE has a trailing four-quarter average surprise of 28%.
American Eagle Outfitters, Inc. AEO currently has an Earnings ESP of +8.52% and a Zacks Rank of 2. The Zacks Consensus Estimate for AEO’s fiscal second-quarter 2023 earnings per share is currently pegged at 15 cents, indicating 275% growth from the prior-year quarter’s tally.
The consensus estimate for AEO’s quarterly revenues is pegged at $1.19 billion, indicating a 0.85% dip from the year-ago quarter’s reported number. AEO has a trailing four-quarter earnings surprise of 9.2%, on average.
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American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
The J. M. Smucker Company (SJM) : Free Stock Analysis Report
Titan Machinery Inc. (TITN) : Free Stock Analysis Report
Five Below, Inc. (FIVE) : Free Stock Analysis Report
