Agricultural and farm machinery company Titan (NSYE:TWI) will be reporting results tomorrow after the bell. Here’s what you need to know.
Titan International missed analysts’ revenue expectations by 5% last quarter, reporting revenues of $448 million, up 11.5% year on year. It was a disappointing quarter for the company, with full-year EBITDA guidance missing analysts’ expectations.
Is Titan International a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Titan International’s revenue to grow 1.1% year on year to $394.4 million, a reversal from the 23.5% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.13 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Titan International’s peers in the heavy machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. AGCO’s revenues decreased 24% year on year, missing analysts’ expectations by 8.5%, and Deere reported a revenue decline of 35.1%, falling short of estimates by 25.6%. AGCO traded down 3.3% following the results while Deere’s stock price was unchanged.
Read our full analysis of AGCO’s results here and Deere’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the heavy machinery stocks have shown solid performance, the group has generally underpeformed, with share prices down 7.4% on average over the last month. Titan International is up 4.4% during the same time and is heading into earnings with an average analyst price target of $12.67 (compared to the current share price of $8.86).
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