Loading...
•
Oct 31, 2023
Titan Machinery Q3 2024 Earnings Report
Achieved record revenue despite OEM delivery constraints and prioritized customer uptime.
Key Takeaways
Titan Machinery Inc. reported record revenues of $694.1 million for the third quarter of fiscal 2024, despite challenges related to OEM deliveries and increased preparation time for machinery inspections. EPS was $1.32, and the company closed the acquisition of J.J. O'Connor & Sons Pty. Ltd.
Revenue increased to $694.1 million compared to $668.8 million in the third quarter of last year.
Equipment revenue was $521.8 million, up from $509.0 million in the same quarter last year.
Net income was $30.2 million, or $1.32 per diluted share, compared to $41.3 million, or $1.82 per diluted share, for the third quarter of last year.
The company closed on the acquisition of J.J. O'Connor & Sons Pty. Ltd. on October 2, 2023, but those results are not yet consolidated in the reported fiscal 2024 third quarter financials.
Titan Machinery
Titan Machinery
Titan Machinery Revenue by Segment
Titan Machinery Revenue by Geographic Location
Revenue by Segment
Agriculture Revenue
CapyFin.comConstruction Revenue
CapyFin.comEurope Revenue
CapyFin.comRevenue by Geographic Location
Europe Revenue
CapyFin.com Forward Guidance
The Company updated its previous expectations for Fiscal 2024 to reflect the year-to-date performance of its businesses.
Positive Outlook
- Demand in excess of OEM production for high-horsepower tractors and wheel loaders, which we expect will continue through at least the first half of calendar year 2024.
- Positioned well for a strong fourth quarter.
- Expect year-over-year revenue growth in each of our segments in the fourth quarter.
- Ag and CE customers are experiencing the carry-over of three exceptionally strong years putting them in excellent financial position and creating optimism for the future.
- Over the last 24 months acquired some high quality and strategic dealerships which will strengthen our bottom line as they are fully integrated into our system.
Challenges Ahead
- Recognition of equipment revenue will be dependent on both the timing of new machinery received from the OEMs.
- Ability to manage service department workflows as we continue to experience substantially longer preparation time to complete the quality pre-delivery inspection and set-up process required before delivery to our customers due to supply chain challenges.
- Includes an estimated loss of approximately $0.04 per share for the Company's Ukrainian subsidiary, which would be similar to actual results for such subsidiary in Fiscal 2023.
- Includes the partial year impact of the two-store acquisition in Germany which closed in May 2023.
- Includes the assumption of achieving manufacturer incentives similar to the $6.4 million that was recognized in the prior year, all of which, if achieved, would be recognized in this year's fourth quarter and has an estimated impact of $0.22 per diluted share.
Revenue & Expenses
Visualization of income flow from segment revenue to net income