Commodities & Metals
Titan Beats Estimates, Raises Revenue Outlook
Published:
Last Updated:
The company raised full fiscal year revenue guidance from a previous range of $1.95 billion to $2.1 billion to a new range of $2.0 billion to $2.15 billion. EPS guidance remained at previously stated range of $2.10 to $2.30. The company dropped its EPS guidance at the end of its second quarter from $2.64 to the current range. The consensus estimates currently call for EPS of $2.14 on revenues of $2.02 billion.
The company’s chairman/CEO said:
In the third quarter, we generated solid top and bottom line growth and ended the quarter with a strong balance sheet. … As we enter the fourth quarter we expect our inventory management strategy will reduce new equipment inventory levels by the end of fiscal 2013. In addition, we expect to improve the construction segment of our business which will enable us to generate stronger operating results in the fourth quarter. We have executed on our organic and acquired growth strategy with strategic acquisitions, both in the United States and internationally.
Titan’s gross margins fell to 16.2% in the second quarter, down from 17.5% in the same period a year ago. The company blamed the drop on a change in sales mix that declined in Titan’s high margin parts and services divisions. That was the same problem the company reported last quarter.
The margin compression experienced by Titan was felt also by Deere & Co. (NYSE: DE) in its most recent quarter. Caterpillar Inc. (NYSE: CAT) escaped the margin problems in its most recently completed quarter, but did note higher manufacturing higher costs as the biggest drag on company profits.
Shares are inactive in premarket trading this morning, having closed at $23.14 last night, in a 52-week range of $19.07 to $36.92. Thomson Reuters had a consensus analyst price target of around $29.70 before today’s results were announced.
Paul Ausick
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.