We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Titan International (TWI) Issues Q2 Update, Ups 2022 Guidance
Read MoreHide Full Article
Titan International, Inc. provided a business update for second-quarter 2022 and hiked current-year financial guidance. The company expects sales for the quarter will match or exceed the first-quarter sales of $556 million with stronger margins.
Titan International now estimates current year sales to be around $2.2 billion and adjusted EBITDA between $225 million and $240 million. Solid momentum in its business, better-than-expected financial performance in the second quarter and a positive outlook for the remainder of the year have contributed to this upbeat view.
The guidance is revised upward from the sales expectation of $2 billion and adjusted EBITDA of $200 million provided earlier. The company stated that this would be the strongest performance in its history. In 2021, TWI had reported sales of $1.78 billion and an adjusted EBITDA of $135 million.
Improved plant productivity and a stronger product mix will likely drive the company’s bottom-line results. TWI consistently focused on managing supply chain challenges while coping with unprecedented inflationary pressure through pricing actions and savings from productivity improvements across all production facilities.
Titan International will generate around $22 million for non-income tax credits in Brazil in the second quarter of 2022. Cash flow from these tax credits will be realized over the next two years. The company will utilize the additional cash flows to reduce debt over time and fund necessary investments to expand the business. Additional tax credits of $10 million are still pending on formal approval by government authorities and will be recognized when such approval is received.
Titan International’s revenues in first-quarter 2022 surged 37% year over year to $556 million, marking the highest quarterly sales since the second quarter of 2013. It delivered adjusted earnings per share (EPS) of 44 cents, highlighting a solid improvement from 7 cents per share in the prior-year quarter. Adjusted EBITDA soared 116% year on year to $57 million. Adjusted EBITDA margin climbed to 10.2%, the strongest level in close to a decade. The stellar performance was driven by robust performance across all segments.
The company’s Agricultural segment has been benefiting from increased commodity prices, improved farmer income, robust demand for new equipment, and lower equipment inventory levels, especially for used equipment. This momentum will continue to support the segment’s performance in the current year. Improvements in global economic conditions and recovery in construction markets have been driving the Earthmoving/Construction segment’s performance. Meanwhile, the Consumer segment has been witnessing higher volumes related to general market improvements.
Titan International is expected to continue to perform well in the years to come, supported by robust strength in end-markets, higher agricultural commodity prices, low equipment inventory levels and healthy farmer financials.
Price Performance
Titan International’s shares have surged 78.8% in the past year against the industry’s drop of 5.4%.
Some other top-ranked tocks in the Industrial Products sector are Graphic Packaging Holding Co. (GPK - Free Report) , Myers Industries (MYE - Free Report) and Packaging Corporation of America (PKG - Free Report) , each flaunt a Zacks Rank #1.
Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%.
Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 14.8% in a year.
Myers Industries has an expected earnings growth rate of 67% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 27% in the past 60 days.
MYE has a trailing four-quarter earnings surprise of 20.1%, on average. Myers Industries’ shares have gained 13% in the past year.
Packaging Corp. has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings rose 4.2% in the past 60 days.
PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 4% in the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Titan International (TWI) Issues Q2 Update, Ups 2022 Guidance
Titan International, Inc. provided a business update for second-quarter 2022 and hiked current-year financial guidance. The company expects sales for the quarter will match or exceed the first-quarter sales of $556 million with stronger margins.
Titan International now estimates current year sales to be around $2.2 billion and adjusted EBITDA between $225 million and $240 million. Solid momentum in its business, better-than-expected financial performance in the second quarter and a positive outlook for the remainder of the year have contributed to this upbeat view.
The guidance is revised upward from the sales expectation of $2 billion and adjusted EBITDA of $200 million provided earlier. The company stated that this would be the strongest performance in its history. In 2021, TWI had reported sales of $1.78 billion and an adjusted EBITDA of $135 million.
Improved plant productivity and a stronger product mix will likely drive the company’s bottom-line results. TWI consistently focused on managing supply chain challenges while coping with unprecedented inflationary pressure through pricing actions and savings from productivity improvements across all production facilities.
Titan International will generate around $22 million for non-income tax credits in Brazil in the second quarter of 2022. Cash flow from these tax credits will be realized over the next two years. The company will utilize the additional cash flows to reduce debt over time and fund necessary investments to expand the business. Additional tax credits of $10 million are still pending on formal approval by government authorities and will be recognized when such approval is received.
Titan International’s revenues in first-quarter 2022 surged 37% year over year to $556 million, marking the highest quarterly sales since the second quarter of 2013. It delivered adjusted earnings per share (EPS) of 44 cents, highlighting a solid improvement from 7 cents per share in the prior-year quarter. Adjusted EBITDA soared 116% year on year to $57 million. Adjusted EBITDA margin climbed to 10.2%, the strongest level in close to a decade. The stellar performance was driven by robust performance across all segments.
The company’s Agricultural segment has been benefiting from increased commodity prices, improved farmer income, robust demand for new equipment, and lower equipment inventory levels, especially for used equipment. This momentum will continue to support the segment’s performance in the current year. Improvements in global economic conditions and recovery in construction markets have been driving the Earthmoving/Construction segment’s performance. Meanwhile, the Consumer segment has been witnessing higher volumes related to general market improvements.
Titan International is expected to continue to perform well in the years to come, supported by robust strength in end-markets, higher agricultural commodity prices, low equipment inventory levels and healthy farmer financials.
Price Performance
Titan International’s shares have surged 78.8% in the past year against the industry’s drop of 5.4%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Titan International currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other top-ranked tocks in the Industrial Products sector are Graphic Packaging Holding Co. (GPK - Free Report) , Myers Industries (MYE - Free Report) and Packaging Corporation of America (PKG - Free Report) , each flaunt a Zacks Rank #1.
Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%.
Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 14.8% in a year.
Myers Industries has an expected earnings growth rate of 67% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 27% in the past 60 days.
MYE has a trailing four-quarter earnings surprise of 20.1%, on average. Myers Industries’ shares have gained 13% in the past year.
Packaging Corp. has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings rose 4.2% in the past 60 days.
PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 4% in the past year.