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) Q4 Earnings Lag Estimates, Rise Y/Y
Read MoreHide Full Article
Titan International, Inc. delivered fourth-quarter 2022 adjusted earnings per share (EPS) of 44 cents, missing the Zacks Consensus Estimate of 45 cents. Including deferred tax valuation allowances, earnings per share were 14 cents in the prior-year quarter. Including one-time items, Titan International posted EPS of 66 cents compared with the year-ago quarter’s 44 cents.
Revenues increased 4.5% year over year to $510 million in the fourth quarter. The upside was driven by increased volume from higher demand in the Earthmoving/Construction segment, and price increases across all segments. However, the top line missed the Zacks Consensus Estimate of $523 million.
Operational Update
Cost of sales increased 1.9% year over year to $433 million in the fourth quarter. The gross profit rose 22.2% year over year to $77 million in the reported quarter. The gross margin was 15.1%, up from 12.9% in 2021.
Selling, general and administrative expenses were $30 million, down 7.6% from the year-ago quarter’s $33 million. The adjusted EBITDA increased 46.7% year over year to $53 million. The adjusted EBITDA margin was 10.4% compared with the year-earlier quarter’s 7.4%.
Titan International, Inc. Price, Consensus and EPS Surprise
Sales in the Agricultural segment were up 3.8% year over year to $275 million in the October-December period. The improvement was driven by pricing and offset by lower volumes. The segment reported an operating income of $24.3 million compared with the prior-year quarter’s $23.4 million.
Sales in the Earthmoving/Construction segment increased 6.8% year over year to $196 million on higher volumes, along with pricing. The segment witnessed higher volumes due to improvements in global economic conditions and recovery in construction markets. The segment reported an operating profit of $19.8 million compared with the prior-year quarter’s $6.8 million. Higher sales volume and improved production efficiencies, as a result of the management actions taken in recent years, led to improved profitability.
The Consumer segment’s sales were $39 million, down 0.8% from the $35 million reported in the year-ago period. The segment’s operating income was $3.9 million compared with the year-ago quarter’s income of $2.5 million. The upside was driven by the positive impact of pricing, and a favorable mix.
Financial Position
Titan International reported cash and cash equivalents of $160 million at the end of 2022, up from $98 million at 2021 end. The company generated $161 million in cash from operating activities in 2022 compared with $11 million in 2021. TWI’s total debt stood at $446 million at the end of 2022, down from $485 million at the end of 2021.
2022 Performance
Titan International reported an adjusted EPS of $2.22 in 2022 compared with 60 cents reported in the prior year. Earnings were in line with the Zacks Consensus Estimate. Including one-time items, the bottom line was at earnings of $2.77 compared with 79 cents per share reported in 2021.
Sales were up 21.9% year over year to $2.17 billion. The top line missed the Zacks Consensus Estimate of $2.18 billion.
Price Performance
Titan International’s shares have gained 35.2% in the past year compared with the industry’s growth of 15%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Titan International currently has a Zacks Rank #3 (Hold).
OI Glass has an average trailing four-quarter earnings surprise of 16.4%. The Zacks Consensus Estimate for OI’s 2023 earnings is pegged at $2.57 per share. This indicates an 11.7% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved 16% north in the past 60 days. OI’s shares gained 71.3% in the last year.
Tenaris has an average trailing four-quarter earnings surprise of 11.5%. The Zacks Consensus Estimate for TS’ 2023 earnings is pegged at $6.04 per share. This indicates a 39.5% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved north by 17% in the past 60 days. Its shares gained 29.7% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $29.82, suggesting an increase of 28.1% from that reported in the last year. The consensus estimate for fiscal 2023 earnings moved 6% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 4.7%. Its shares gained 15.9% in the last year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Titan International (TWI) Q4 Earnings Lag Estimates, Rise Y/Y
Titan International, Inc. delivered fourth-quarter 2022 adjusted earnings per share (EPS) of 44 cents, missing the Zacks Consensus Estimate of 45 cents. Including deferred tax valuation allowances, earnings per share were 14 cents in the prior-year quarter. Including one-time items, Titan International posted EPS of 66 cents compared with the year-ago quarter’s 44 cents.
Revenues increased 4.5% year over year to $510 million in the fourth quarter. The upside was driven by increased volume from higher demand in the Earthmoving/Construction segment, and price increases across all segments. However, the top line missed the Zacks Consensus Estimate of $523 million.
Operational Update
Cost of sales increased 1.9% year over year to $433 million in the fourth quarter. The gross profit rose 22.2% year over year to $77 million in the reported quarter. The gross margin was 15.1%, up from 12.9% in 2021.
Selling, general and administrative expenses were $30 million, down 7.6% from the year-ago quarter’s $33 million. The adjusted EBITDA increased 46.7% year over year to $53 million. The adjusted EBITDA margin was 10.4% compared with the year-earlier quarter’s 7.4%.
Titan International, Inc. Price, Consensus and EPS Surprise
Titan International, Inc. price-consensus-eps-surprise-chart | Titan International, Inc. Quote
Segmental Performance
Sales in the Agricultural segment were up 3.8% year over year to $275 million in the October-December period. The improvement was driven by pricing and offset by lower volumes. The segment reported an operating income of $24.3 million compared with the prior-year quarter’s $23.4 million.
Sales in the Earthmoving/Construction segment increased 6.8% year over year to $196 million on higher volumes, along with pricing. The segment witnessed higher volumes due to improvements in global economic conditions and recovery in construction markets. The segment reported an operating profit of $19.8 million compared with the prior-year quarter’s $6.8 million. Higher sales volume and improved production efficiencies, as a result of the management actions taken in recent years, led to improved profitability.
The Consumer segment’s sales were $39 million, down 0.8% from the $35 million reported in the year-ago period. The segment’s operating income was $3.9 million compared with the year-ago quarter’s income of $2.5 million. The upside was driven by the positive impact of pricing, and a favorable mix.
Financial Position
Titan International reported cash and cash equivalents of $160 million at the end of 2022, up from $98 million at 2021 end. The company generated $161 million in cash from operating activities in 2022 compared with $11 million in 2021. TWI’s total debt stood at $446 million at the end of 2022, down from $485 million at the end of 2021.
2022 Performance
Titan International reported an adjusted EPS of $2.22 in 2022 compared with 60 cents reported in the prior year. Earnings were in line with the Zacks Consensus Estimate. Including one-time items, the bottom line was at earnings of $2.77 compared with 79 cents per share reported in 2021.
Sales were up 21.9% year over year to $2.17 billion. The top line missed the Zacks Consensus Estimate of $2.18 billion.
Price Performance
Titan International’s shares have gained 35.2% in the past year compared with the industry’s growth of 15%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Titan International currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are OI Glass (OI - Free Report) , Tenaris (TS - Free Report) and Deere & Company (DE - Free Report) . OI and TS flaunt a Zacks Rank #1 (Strong Buy) at present, and DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
OI Glass has an average trailing four-quarter earnings surprise of 16.4%. The Zacks Consensus Estimate for OI’s 2023 earnings is pegged at $2.57 per share. This indicates an 11.7% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved 16% north in the past 60 days. OI’s shares gained 71.3% in the last year.
Tenaris has an average trailing four-quarter earnings surprise of 11.5%. The Zacks Consensus Estimate for TS’ 2023 earnings is pegged at $6.04 per share. This indicates a 39.5% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved north by 17% in the past 60 days. Its shares gained 29.7% in the last year.
The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $29.82, suggesting an increase of 28.1% from that reported in the last year. The consensus estimate for fiscal 2023 earnings moved 6% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 4.7%. Its shares gained 15.9% in the last year.