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Oct 31, 2021
Titan Machinery Q3 2022 Earnings Report
Revenue increased by 25.8% and GAAP EPS was $0.97.
Key Takeaways
Titan Machinery Inc. reported a strong third quarter with revenue increasing by 25.8% to $454.0 million and GAAP EPS of $0.97. The company's performance was driven by the strength of the agriculture sector and increased equipment demand. They also increased fiscal year 2022 EPS expectations to $2.40-$2.60.
Revenue for the third quarter of fiscal 2022 increased 25.8% to $454.0 million.
GAAP EPS for the third quarter of fiscal 2022 was $0.97 and adjusted EPS was $0.96.
Equipment revenue grew 37% on a consolidated basis in the third quarter.
The company increased fiscal 2022 modeling assumptions and expects fiscal 2022 EPS in the range of $2.40-$2.60.
Titan Machinery
Titan Machinery
Titan Machinery Revenue by Segment
Revenue by Segment
Agriculture Revenue
CapyFin.comConstruction Revenue
CapyFin.com Forward Guidance
The Company's current expectations for fiscal 2022 modeling assumptions are as follows: Agriculture revenue up 23-28%, Construction revenue up 2-7%, International revenue up 35-40%, and Diluted EPS in the range of $2.40 - $2.60.
Positive Outlook
- Agriculture revenue is expected to increase by 23-28%.
- Construction revenue is expected to increase by 2-7%.
- International revenue is expected to increase by 35-40%.
- Diluted EPS is expected to be in the range of $2.40 - $2.60.
- The company anticipates a partial-quarter contribution from the Jaycox acquisition following its expected closing in early December 2021.
Challenges Ahead
- Supply chains remain challenged.
- The construction segment includes the full year impact of the Phoenix and Tucson, AZ store divestitures in January 2021.
- The international segment assumes an immaterial impact from the divestiture of a single store dealership in Serbia in the third quarter of fiscal 2022.
- Expenses related to ERP implementation are included in the diluted EPS estimate.
- The diluted EPS estimate is subject to risks and uncertainties that may cause actual results to differ materially from the forecasted assumptions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income