NASDAQ$TITN

Titan Machinery Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Delivered record earnings through sound management of dealership network.

Titan Machinery Inc. reported an exceptional fiscal year 2022, delivering record earnings and significant operating leverage across all business segments. The company's strong balance sheet has provided greater flexibility for accretive acquisitions.

  • Revenue for the fourth quarter of fiscal 2022 was $507.6 million, compared to $436.7 million in the fourth quarter last year.
  • Net income for the fourth quarter of fiscal 2022 was $22.4 million, or earnings per diluted share of $0.99, compared to fiscal 2021 fourth quarter net income of $0.8 million and earnings per diluted share of $0.03.
  • Agriculture segment revenue for the fourth quarter of fiscal 2022 was $346.3 million, compared to $303.2 million in the fourth quarter last year.
  • Construction segment revenue for the fourth quarter of fiscal 2022 was $87.9 million, compared to $88.9 million in the fourth quarter last year.

Headline financials

Total Revenue

$508M

Previous: $437M+16.2%
EPS (adj)

$0.99

Previous: $0.23+330.4%
Net Income

$22.4M

Previous: $782K+2768.9%
Operating Income

$29.7M

Previous: $6.78M+337.4%
Gross Profit

$94.2M

Previous: $67.7M+39.2%
Cash & Equivalents

$146M

Previous: $79M+85.0%
Total Assets

$947M

Previous: $816M+16.0%
Stock-Based Comp

$704K

Previous: $643K+9.5%

Revenue & EPS history

Titan Machinery · Revenue · Quarterly

$508M

Q4 2022+16.2%vs Q4 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 provided its current expectations for fiscal 2023 modeling assumptions, including segment revenue and diluted EPS.

Tailwinds

  • Agriculture segment revenue is expected to be up 22-27%, including the full year impact of the Jaycox and Mark's Machinery acquisitions.
  • Adjusting full year fiscal 2022 net sales by approximately $73 million, representing the fiscal 2022 net sales of these divested stores, results in a same-store sales assumption of up approximately 8-13% for the Construction segment.
  • Strong industry fundamentals.
  • Team's continuous improvement efforts.
  • Diluted EPS is expected to be $2.55 - $2.85

Headwinds

  • Construction segment revenue is expected to be down 12-17%, including the full year impact of the Montana and Wyoming divestiture in January 2022 and the North Dakota divestiture in March 2022.
  • International segment revenue is expected to be down 8-13%, including a reduction in revenue of approximately 75% from our Ukraine subsidiary compared to fiscal 2022.
  • Challenges around inflation remain in focus.
  • Challenges around the supply chain remain in focus.
  • Includes an estimated loss of approximately $0.25 per share for our Ukraine subsidiary.

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 Q4 2022

Historical avgQ4 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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