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Oct 31, 2022

Titan Machinery Q3 2023 Earnings Report

Reported record financial results with significant revenue growth and EPS increase, driven by strength in the agriculture sector and customer-centric focus.

Key Takeaways

Titan Machinery Inc. reported a strong fiscal third quarter with a 47.3% increase in revenue to $668.8 million and an 88% increase in EPS to a record $1.82. The company's performance was driven by growth across all revenue streams and efficient operations, leading to a consolidated pre-tax margin of 8.2%.

Revenue increased by 47.3% to $668.8 million compared to the third quarter last year.

Earnings per share increased by 88% to a record $1.82.

Consolidated pre-tax margin reached a record 8.2%, with expansion in all operating segments.

Fiscal year 2023 EPS modeling assumption increased to the range of $4.55-$4.85.

Total Revenue
$669M
Previous year: $454M
+47.3%
EPS
$1.83
Previous year: $0.96
+90.6%
Gross Profit
$140M
Previous year: $92.5M
+50.9%
Cash and Equivalents
$45.9M
Previous year: $90.5M
-49.4%
Total Assets
$1.12B
Previous year: $855M
+31.5%

Titan Machinery

Titan Machinery

Titan Machinery Revenue by Segment

Forward Guidance

The Company's current expectations for fiscal 2023 include revenue increases for the Agriculture segment, decreases for the Construction and International segments, and diluted EPS in the range of $4.55-$4.85.

Positive Outlook

  • Agriculture segment revenue is expected to increase by 55-60%.
  • The full-year impact of the Jaycox acquisition is included.
  • The partial-year impact of the Mark's Machinery acquisition is included.
  • The partial-year impact of the Heartland acquisition is included.
  • Diluted EPS is expected to be in the range of $4.55 - $4.85.

Challenges Ahead

  • Construction segment revenue is expected to decrease by 0-5%.
  • Includes the full year impact of the Montana and Wyoming divestiture in January 2022
  • Includes the partial year impact of the North Dakota divestiture in March 2022.
  • International segment revenue is expected to decrease by 0-5%.
  • Includes an estimated loss of approximately $0.05 to $0.10 per share from our Ukrainian subsidiary.

Revenue & Expenses

Visualization of income flow from segment revenue to net income