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Titan Machinery (TITN) to Post Q1 Earnings: What's in Store?

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Titan Machinery Inc. (TITN - Free Report) is scheduled to report first-quarter fiscal 2023 results (ended Apr 30, 2021) before the market opens on May 26.

Q1 Estimates

The Zacks Consensus Estimate for fiscal first-quarter revenues is currently pegged at $406 million, indicating an increase of 9% from the prior-year level. The consensus mark for earnings is pegged at 51 cents per share, suggesting growth of 10.9% from the year-ago level. Earnings estimates have been stable in the past 60 days.

Q4 Results

In the last reported quarter, Titan Machinery’s revenues and earnings per share both improved year on year. While earnings beat the Zacks Consensus Estimate, revenues missed the same.

Titan Machinery surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with the average surprise being 102.1%.

Titan Machinery Inc. Price, Consensus and EPS Surprise Titan Machinery Inc. Price, Consensus and EPS Surprise

Titan Machinery Inc. price-consensus-eps-surprise-chart | Titan Machinery Inc. Quote

Factors to Note

Titan Machinery’s fiscal first-quarter results are likely to reflect improved demand in the end markets across segments. The company’s solid inventory position and continued success in reducing operating expenses and lower interest expenses might have helped offset higher input costs and the impact of supply chain headwinds in the quarter.

Solid agriculture market fundamentals — including higher farm income and rising corn, soybean and wheat prices — might have driven Titan Machinery’s Agriculture segment’s fiscal first-quarter performance. Demand for technological advancement of the existing equipment and the need to replace the aged fleet might have contributed to the top line. Strong part and service performance has been driving the segment’s revenues lately.

The Zacks Consensus Estimate for the Agriculture segment’s fiscal first-quarter revenues is pegged at $284 million, suggesting year-over-year growth of 23%.

The Construction segment’s fiscal third-quarter revenues are likely to reflect strong demand for new and used construction equipment, strength in the housing market and improved oil prices. However, lost sales contributions from the Montana and Wyoming divestiture in January 2022 and the North Dakota divestiture in March 2022 are likely to have impacted sales. The consensus mark for the Construction segment’s quarterly revenues is pegged at $55 million, suggesting a decline from the prior-year quarter’s $69 million.

In the International segment, improved farmer sentiment backed by strength in global commodity prices and good crop conditions across its international footprint might have contributed to revenues in the quarter under review. Supply chain issues might have somewhat dented these gains. Also, results in the segment are likely to bear the impact of the Ukraine business disruption. For the International segment, the consensus mark for revenues is pegged at $67 million, suggesting a drop of 11% from the prior-year reported figure of $75 million.

For the to-be-reported quarter, the Zacks Consensus Estimate for operating profit for the Agriculture segment is pegged at $14.3 million, suggesting year-over-year growth of 27% from the prior-year level. The Construction segment is anticipated to report an operating profit of $0.5 million, suggesting a substantial improvement from the $0.14 million in the prior-year quarter. The Zacks Consensus Estimate for the International segment’s operating profit is pegged at $1 million, suggesting a plunge from the year-ago figure of $2.8 million.

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 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

Titan Machinery’s shares have fallen 7.7% in the past year against the industry’s gain of 2.4%.

 

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Stocks Poised to Beat Estimates

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter:

Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +1.90% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for the company’s revenues of $51.7 billion for the third quarter of fiscal 2022 indicates year-over-year growth of 14.3%.

The Zacks Consensus Estimate for the company’s third-quarter fiscal 2022 earnings is $3.04, suggesting year-over-year growth of 10.6%. COST’s earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 13.3%.

Star Bulk Carriers Corp. (SBLK - Free Report) currently has an Earnings ESP of +1.77% and a Zacks Rank of 2. The Zacks Consensus Estimate for Star Bulk Carriers’ first-quarter 2022 earnings is pegged at $1.41 per share, suggesting a 291.6% surge from the year-ago level.

The Zacks Consensus Estimate for its quarterly revenues is pegged at $339 million, suggesting year-over-year growth of 69%.

Advance Auto Parts, Inc. (AAP - Free Report) currently has an Earnings ESP of +4.89% and a Zacks Rank #3. The Zacks Consensus Estimate for Advance Auto Parts’ first-quarter 2022 earnings per share is currently pegged at $3.50, indicating 4.8% growth from the prior-year quarter’s tally.

The Zacks Consensus Estimate for AAP’s quarterly revenues is pegged at $3.4 million, which indicates year-over-year growth of 1.3%. The company has a trailing four-quarter earnings surprise of 11%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.