Titan Machinery shares rise 2% on earnings, revenue beat
TITN
+3.03%
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WEST FARGO, N.D. – Titan Machinery Inc. (NASDAQ:TITN) reported a robust finish to fiscal 2024, with fourth-quarter earnings and revenue surpassing analyst expectations.
The company, a leading provider of full-service agricultural and construction equipment, announced an earnings per share (EPS) of $1.05, which was $0.07 higher than the consensus estimate of $0.98. Revenue also outperformed, reaching $852.13 million against the predicted $739.73 million.
The strong quarterly performance led to a 2.34% increase in Titan Machinery’s stock.
Bryan Knutson, President & Chief Executive Officer of Titan Machinery, highlighted the company’s growth across all legacy operating segments, which contributed to record annual revenue of $2.8 billion, a significant 24.9% increase from the previous year. The company’s consolidated pre-tax margin stood at 5.5%, and the record EPS of $4.93 marked a 9.8% improvement.
The fourth quarter’s success included contributions from the recent O’Connors acquisition, with integration efforts aligning with Titan’s strategic vision. Knutson also noted the domestic team’s efforts in meeting demand through improved customer delivery rates and the advancement of the customer care strategy, which drove double-digit same-store growth for recurring parts and service business.
Looking ahead, Titan Machinery provided guidance for fiscal 2025, projecting EPS in the range of $3.00 to $3.50. This forecast falls below the analyst consensus of $4.34, setting a conservative expectation amidst anticipated equipment margin compression and continued investment in customer care strategies.
For the fiscal year 2024, Titan Machinery’s net income reached $112.4 million, with an EBITDA of $189.3 million, representing a 14.6% increase from the previous year. The company’s balance sheet showed $38.1 million in cash at the end of the fourth quarter, with inventories rising to $1.3 billion, reflecting both organic growth and the impact of acquisitions.
In his concluding remarks, Knutson expressed confidence in the company’s strength and the durability of its earnings, emphasizing the multi-year effort to enhance organizational efficiency. Despite anticipating some margin pressures, the company’s leadership remains optimistic about achieving the set targets for the coming fiscal year.
