NASDAQ$TITN

Titan Machinery Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Revenue increased by 25.8% and GAAP EPS was $0.97.

Titan Machinery Inc. reported a strong third quarter with revenue increasing by 25.8% to $454.0 million and GAAP EPS of $0.97. The company's performance was driven by the strength of the agriculture sector and increased equipment demand. They also increased fiscal year 2022 EPS expectations to $2.40-$2.60.

  • Revenue for the third quarter of fiscal 2022 increased 25.8% to $454.0 million.
  • GAAP EPS for the third quarter of fiscal 2022 was $0.97 and adjusted EPS was $0.96.
  • Equipment revenue grew 37% on a consolidated basis in the third quarter.
  • The company increased fiscal 2022 modeling assumptions and expects fiscal 2022 EPS in the range of $2.40-$2.60.

Headline financials

Total Revenue

$454M

Previous: $361M+25.8%
EPS (adj)

$0.96

Previous: $0.58+65.5%
Capital Expenditures

-$12.2M

Previous: -$6.8M-78.8%
Free Cash Flow

$9.66M

Previous: $3.11M+210.2%
Net Income

$21.8M

Previous: $9.91M+120.1%
Operating Income

$29.5M

Previous: $15.9M+86.0%
Gross Profit

$92.5M

Previous: $72.6M+27.5%
Cash & Equivalents

$90.5M

Previous: $41.8M+116.6%
Total Assets

$855M

Previous: $901M-5.1%
Stock-Based Comp

$657K

Previous: $691K-4.9%

Revenue & EPS history

Titan Machinery · Revenue · Quarterly

$454M

Q3 2022+25.8%vs Q3 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Titan Machinery · $522M total across 4 segments · Q1 2027

  • Agriculture
    $344M
  • Construction
    $67.5M
  • Europe
    $60.4M
  • Australia
    $50.3M

Forward guidance

The Company's current expectations for fiscal 2022 modeling assumptions are as follows: Agriculture revenue up 23-28%, Construction revenue up 2-7%, International revenue up 35-40%, and Diluted EPS in the range of $2.40 - $2.60.

Tailwinds

  • Agriculture revenue is expected to increase by 23-28%.
  • Construction revenue is expected to increase by 2-7%.
  • International revenue is expected to increase by 35-40%.
  • Diluted EPS is expected to be in the range of $2.40 - $2.60.
  • The company anticipates a partial-quarter contribution from the Jaycox acquisition following its expected closing in early December 2021.

Headwinds

  • Supply chains remain challenged.
  • The construction segment includes the full year impact of the Phoenix and Tucson, AZ store divestitures in January 2021.
  • The international segment assumes an immaterial impact from the divestiture of a single store dealership in Serbia in the third quarter of fiscal 2022.
  • Expenses related to ERP implementation are included in the diluted EPS estimate.
  • The diluted EPS estimate is subject to risks and uncertainties that may cause actual results to differ materially from the forecasted assumptions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-1.0%

Avg return

Earnings day

-0.0%

Avg return

5 days after

-2.2%

Avg return

30 days after

41%

27 / 66 earnings

Positive

+29.1%

Q3 2018

Best reaction

-23.8%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027-13.6%-15.1%
Q4 2026-9.1%+4.4%+30.8%
Q3 2026+18.4%+12.6%-5.3%
Q2 2026-6.6%-1.8%-18.8%
Q1 2026+0.0%-0.7%+1.2%
Q4 2025+12.9%+22.1%+10.9%
Q3 2025+1.8%+0.2%-8.4%
Q2 2025+6.9%-1.6%+1.1%
Q1 2025-19.4%-23.5%-30.2%
Q4 2024-12.4%-12.9%-13.5%
Q3 2024-3.3%-2.1%+13.3%
Q2 2024+1.8%-1.0%-8.6%
Q1 2024-21.4%-26.4%-16.7%
Q4 2023-23.8%-27.5%-25.6%
Q3 2023+21.7%+20.4%+13.9%
Q2 2023+3.3%+3.2%-14.3%
Q1 2023+10.2%+6.1%-4.5%
Q4 2022-17.5%-11.2%-22.4%
Q3 2022-0.9%-4.0%-8.7%
Q2 2022-1.8%-4.0%-14.0%
Q1 2022+20.0%+35.3%+24.4%
Q4 2021-6.6%-13.0%-6.7%
Q3 2021-2.4%-0.9%-0.2%
Q2 2021+9.0%+14.2%+2.6%
Q1 2021-2.7%-3.2%-6.2%
Q4 2020+16.8%+12.0%+14.7%
Q3 2020-21.4%-25.3%-20.1%
Q2 2020-11.0%-14.9%-14.1%
Q1 2020+10.9%+12.5%+36.5%
Q4 2019-20.7%-19.9%-13.0%
Q3 2019+23.6%+18.2%-7.6%
Q2 2019+14.4%+12.7%-1.9%
Q1 2019-18.1%-13.2%-26.0%
Q4 2018+21.6%+21.9%-0.8%
Q3 2018+29.1%+30.6%+26.7%
Q2 2018-22.1%-23.1%-0.1%
Q1 2018+11.0%+9.8%+16.0%
Q4 2017-1.1%-0.1%+2.2%
Q3 2017+7.9%+14.3%+12.4%
Q2 2017-1.3%-1.1%-4.6%
Q1 2017-6.8%-5.7%-0.7%
Q4 2016+5.7%
Q3 2016-18.2%
Q2 2016+28.5%
Q1 2016+17.6%
Q4 2015+1.4%
Q3 2015-2.7%
Q2 2015-1.1%
Q1 2015-3.6%
Q4 2014+25.9%
Q3 2014-6.0%
Q2 2014-2.2%
Q1 2014+0.7%
Q4 2013-16.1%
Q3 2013-16.1%
Q3 2012-1.0%
Q2 2012-22.5%
Q2 2013-22.5%
Q1 2012-18.9%
Q1 2013+0.7%
Q4 2010+28.4%
Q4 2012+10.1%
Q3 2011-3.0%
Q2 2011-22.6%
Q4 2011-22.6%
Q1 2011+0.0%

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