- Titan Machinery Inc. TITN shares are plunging after reporting its first-quarter FY24 results. The company warned about ebbs and flows between quarters for the balance of its fiscal year due to timeliness of equipment shipments and supply chain constraints.
- The agricultural and construction equipment stores company registered an EPS of $1.19, beating the consensus of $1.02.
- The company recorded revenue growth of 23.6% year-on-year to $569.63 million, missing the consensus of $589.20 million.
- Segment Results: Agriculture Segment revenues totaled $423.2 million (+32.9%), Construction totaled nearly $72 million (+7.5%), and International totaled $74.4 million (-1.4%).
- Equipment sales increased by 20.5% Y/Y, and Parts sales rose by 40.8%.
- The gross profit margin increased to 20.8% in the first quarter of fiscal 2024, up 160 basis points Y/Y.
- The company exited the quarter with cash worth $38.4 million. Inventories increased to $854.2 million compared to $703.9 million Y/Y.
- David Meyer, Titan Machinery's Chairman and CEO, said, "While we continue to see strong demand in all three of our operating segments, we anticipate ebbs and flows between quarters for the balance of our fiscal year due to timeliness of equipment shipments and supply chain constraints."
- Operating cash flow was negative $(77.7) million versus $5.3 million a year ago.
- FY24 Outlook: The company reiterated its FY24 outlook. Titan Machinery sees EPS of $4.50 - $5.10 against the consensus of $4.91.
- Price Action: TITN shares are trading lower by 14.1% at $29.85 on the last check Thursday.
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