NASDAQ$TITN

Titan Machinery Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported financial results for the fiscal fourth quarter and full year ended January 31, 2023.

Titan Machinery Inc. reported a revenue increase to $583.0 million for the fourth quarter of fiscal 2023, compared to $507.6 million in the fourth quarter last year. Net income for the fourth quarter of fiscal 2023 was $18.1 million, or earnings per diluted share of $0.80, compared to net income of $22.4 million, or earnings per diluted share of $0.99, for the fourth quarter of last year.

  • Revenue for the fourth quarter of fiscal 2023 increased to $583.0 million, compared to $507.6 million in the fourth quarter last year.
  • Equipment revenue was $471.0 million for the fourth quarter of fiscal 2023, compared to $413.2 million in the fourth quarter last year.
  • Net income for the fourth quarter of fiscal 2023 was $18.1 million, or earnings per diluted share of $0.80.
  • The company generated $32.1 million in adjusted EBITDA in the fourth quarter of fiscal 2023, reflecting a decrease of 10.6% versus the $35.9 million generated in the fourth quarter of last year.

Headline financials

Total Revenue

$583M

Previous: $508M+14.9%
EPS (adj)

$0.81

Previous: $0.99-18.2%
Net Income

$18.1M

Previous: $22.4M-19.3%
Operating Income

$25.2M

Previous: $29.7M-15.1%
Gross Profit

$109M

Previous: $94.2M+15.5%
Cash & Equivalents

$43.9M

Previous: $146M-70.0%
Total Assets

$1.19B

Previous: $947M+25.6%
Stock-Based Comp

$922K

Previous: $704K+31.0%

Revenue & EPS history

Titan Machinery · Revenue · Quarterly

$583M

Q4 2023+14.9%vs Q4 2022
Beat estimate in 9 of 14 quarters(64%)
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 2024 modeling assumptions are: Agriculture up 20-25%, Construction flat to up 5%, International up 8-13% and Diluted EPS $4.50 - $5.10.

Tailwinds

  • Agriculture segment revenue is expected to increase by 20-25%.
  • International segment revenue is expected to increase by 8-13%.
  • Diluted EPS is projected to be in the range of $4.50 - $5.10.
  • Includes the full year impact of the Mark's Machinery acquisition, which closed in April 2022.
  • Includes the full year impact of the Heartland acquisition, which closed in August 2022.

Headwinds

  • Construction segment revenue is expected to be flat to up 5%.
  • Equipment availability will likely remain a limiting factor in the near-term.
  • The fourth quarter was negatively impacted by delayed new equipment shipments.
  • Includes an estimated loss of approximately $0.07 per share for our Ukraine subsidiary which would be similar to actual results in Fiscal 2023.
  • The increase in inventory also includes $117.7 million that was attributable to acquisitions made during fiscal 2023.

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 2023

Historical avgQ4 2023

-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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