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Titan Machinery (TITN) Inks Deal to Buy Idaho Dealerships

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Titan Machinery Inc. (TITN - Free Report) announced that it has entered into a definitive purchase agreement to acquire the Idaho dealership assets of Pioneer Farm Equipment Co.  The deal adds five full-line Case IH agriculture dealerships in southeastern Idaho. Two of these also deal with Case Construction equipment.

Pioneer generated revenues of around $60 million last year. It has been catering to customers in the highly productive Snake River Valley area in southeastern Idaho for over two decades. This region is a strategic fit for Titan Machinery as it supports large industry volumes and has similar crops and machine specifications to other markets served by the company.

The acquisition is expected to close in February 2023. It will help TITN build upon the Heartland acquisition that was completed in July this year. The Heartland acquisition provided Titan Machinery access to the Case IH full line of application equipment products. Heartland also has an established presence in Idaho with commercial application equipment customers.

Titan Machinery recently reported adjusted earnings per share (EPS) of $1.83 in third-quarter fiscal 2023 (ended Oct 31, 2022), beating the Zacks Consensus Estimate of $1.15. The bottom line increased 91% from the EPS of 96 cents reported in the year-ago fiscal quarter.

The upside can be attributed to solid performances in the Agricultural segment as well as strong contributions from each of its revenue streams - equipment, parts and service. Total revenues in the reported quarter were $669 million, up 47% from the year-ago fiscal quarter. The top line surpassed the consensus mark of $655 million.

Titan Machinery expects the agriculture segment’s revenues to increase 55-60% in fiscal 2023. TITN expects EPS for fiscal 2023 to be around $4.70 per share, compared to the previously guided range between $3.70 and $4.00. The Zacks Consensus Estimate for the company’s earnings for fiscal 2023 is currently pegged at $4.82, indicating year-over-year growth of 61.7%.

Price Performance

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In the past year, shares of Titan Machinery have gained 23.3% against the industry’s 2.4% decline.

Zacks Rank & Other Stocks to Consider

Titan Machinery currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Some other top-ranked stocks in the Retail - Wholesale sector are Tecnoglass (TGLS - Free Report) , BuildABear Workshop (BBW - Free Report) and Dillard's (DDS - Free Report) .

The Zacks Consensus Estimate for Tecnoglass’ current financial-year sales and earnings per share suggests growth of 43.4% and 82.2%, respectively, from the year-ago reported figures. TGLS has a trailing four-quarter earnings surprise of 26.9%, on average. The company’s shares have gained 25% in the past year. TGLS currently sports a Zacks Rank of 1.

The Zacks Consensus Estimate for BuildABear Workshop fiscal 2023 sales and earnings per share suggests growth of 11.9% and 21.5%, respectively, from the year-ago reported numbers. BBW has a trailing four-quarter earnings surprise of 26.9%, on average. The Zacks Ranked #1 stock has gained 33.5% over the past year.

The Zacks Consensus Estimate for Dillard's fiscal 2023 earnings per share indicates a 4.5% growth from the year-ago reading. The same for revenues suggests 6.2% year-over-year growth. DDS has a trailing four-quarter earnings surprise of 144%, on average. Its shares have gained 30% in the past year. The company sports a Zacks Rank of 1.

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