Titan Machinery Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

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Investors in Titan Machinery Inc. (NASDAQ:TITN) had a good week, as its shares rose 3.6% to close at US$15.69 following the release of its quarterly results. Revenues were US$680m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.07, an impressive 150% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Titan Machinery after the latest results.

View our latest analysis for Titan Machinery

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NasdaqGS:TITN Earnings and Revenue Growth November 29th 2024

Taking into account the latest results, the five analysts covering Titan Machinery provided consensus estimates of US$2.43b revenue in 2026, which would reflect a chunky 13% decline over the past 12 months. The company is forecast to report a statutory loss of US$0.91 in 2026, a sharp decline from a profit over the last year. Before this earnings announcement, the analysts had been modelling revenues of US$2.51b and losses of US$0.60 per share in 2026. While next year's revenue estimates dropped there was also a regrettable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The analysts lifted their price target 6.0% to US$17.80, implicitly signalling that lower earnings per share are not expected to have a longer-term impact on the stock's value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Titan Machinery analyst has a price target of US$25.00 per share, while the most pessimistic values it at US$14.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 11% annualised decline to the end of 2026. That is a notable change from historical growth of 18% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.5% per year. It's pretty clear that Titan Machinery's revenues are expected to perform substantially worse than the wider industry.