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Titan Machinery (TITN) to Post Q3 Earnings: What's in Store?

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Titan Machinery Inc. (TITN - Free Report) is scheduled to report third-quarter fiscal 2023 results (ended Oct 31, 2022) before the market opens on Nov 30.

Q3 Estimates

The Zacks Consensus Estimate for TITN’s third-quarter revenues is currently pegged at $655 million, indicating an improvement of 44.3% from the prior-year fiscal quarter’s reported figure. The consensus mark for earnings stands at $1.15 per share, suggesting growth of 19.8% from the year-ago fiscal quarter’s reading. The earnings estimates have been constant over the past 60 days.

Q2 Results

In the last reported quarter, Titan Machinery’s revenues and earnings per share improved from the respective year-ago fiscal quarter’s tallies. TITN beat the Zacks Consensus Estimates on both metrics.
TITN’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 59.5%.

Titan Machinery Inc. Price and EPS Surprise

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 third 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 third quarter is pegged at $393 million, suggesting growth of 39.4% from the year-ago fiscal quarter’s reported figure. The segment’s results are likely to benefit from strong demand in the agricultural sector and recent acquisitions. Strong performance has been driving the segment’s revenues lately. Income before tax for this segment is expected to be $24.4 million compared with the reported income of $19.6 million in the last year's comparable fiscal quarter. 
 
The estimated net sales of the Construction segment are $79 million for the to-be-reported quarter. This indicates a decline from the net sales of $80 million reported in the previous year’s fiscal quarter. The sales are likely to be impacted by the lost contributions from the divestiture of construction stores in Montana and Wyoming, and consumer products stores in North Dakota. Nevertheless, this might have been somewhat negated by strong equipment demand, strength in parts, service and rental and improved oil prices. Income before tax for this segment is estimated at $5.5 million, suggesting a 54.5% increase from the previous fiscal year's quarterly reading.
 
For the International segment, the consensus mark for revenues is pegged at $84 million, suggesting a drop of 9.7% from the prior-year fiscal quarter’s $93 million. The results will bear the impact of disruptions in the Ukraine business. Besides, this segment is likely to have faced supply-chain challenges that might affect the results. The estimated income before taxes for this segment is $6.30 compared with the year-ago fiscal quarter’s $6.26 million. The performance will likely be aided by improved farmer sentiments, global commodity prices and good crop conditions.

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: Titan Machinery has an Earnings ESP of 0.00%.
 
Zacks Rank: Titan Machinery currently carries a Zacks Rank #2.

Price Performance

Titan Machinery’s shares have decreased 0.6% in the past year compared with the industry’s fall of 4.2%.

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Stocks Poised to Beat Estimates

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in the to-be-reported quarter:
 
 
Adobe (ADBE - Free Report) currently has an Earnings ESP of +0.03% and a Zacks Rank of 3. The Zacks Consensus Estimate for ADBE’s fiscal fourth quarter earnings is pegged at $3.50 per share, suggesting a 9.4% increase from the year-ago quarter’s level.
 
The Zacks Consensus Estimate for quarterly revenues is pegged at $4.52 billion, suggesting growth of 10% from the prior-year fiscal period’s tally.
 
AutoZone (AZO - Free Report) has an Earnings ESP of +2.91% and a Zacks Rank #3. The Zacks Consensus Estimate for AZO’s revenues of $3.8 billion for the fiscal first quarter indicates growth of 4.2% from the prior-year quarter’s reading.
 
The Zacks Consensus Estimate for AZO’s fiscal first quarter earnings is pegged at $24.82, suggesting a 3.4% dip from the year-earlier quarter’s reported number. AZO has a trailing four-quarter average surprise of 16.6%.
 
BRP (DOOO - Free Report) currently has an Earnings ESP of +8.09% and is Zacks Rank #2. The Zacks Consensus Estimate for DOOO’s fiscal third quarter earnings per share is currently pegged at $1.80, indicating 52.5% growth from the prior-year quarter’s tally.
 
The Zacks Consensus Estimate for DOOO’s quarterly revenues is pegged at $1.78 billion, indicating 41.4% growth from the year-ago quarter’s reported number. DOOO has a trailing four-quarter earnings surprise of 28.5%, on average.
 
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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