Associated Press, Published June 09 2011
Titan Machinery shares jump after earnings reportWEST FARGO - Titan Machinery Inc., an agriculture and construction equipment dealership chain, said Thursday that its profit more than quadrupled in its fiscal first quarter on acquisitions and strong demand for equipment.
The West Fargo company also raised its earnings and revenue guidance for the full year. Its shares jumped $2.24, or 8.3 percent, to $29.34 in morning trading.
For the quarter ending April 30, Titan reported net income of $7.3 million, or 40 cents per share, compared with $1.6 million, or 9 cents per share, a year earlier. Revenue rose by almost 55 percent to $318.2 million from $205.5 million.
That soundly beat Wall Street's expectations. Analysts polled by FactSet expected 23 cents per share on revenue of $258.3 million.
CEO David Meyer said in a statement that agriculture sales at stores open at least a year rose 37.6 percent during the quarter, while construction sales were up 33.1 percent.
"We see additional growth opportunities through acquisitions, and with our recently completed follow-on equity offering of $75 million, we have the financial ability to capitalize on these opportunities," Meyer said.
Titan said that based on its strong first-quarter results, it now expects net income for fiscal year ending Jan. 31, 2012 to be in the range of $31.2 million to $33.3 million, up from the previous range of $27.5 million to $29.4 million. Earnings per share are expected to rise to $1.53 to $1.63, up from previous guidance of $1.50 to $1.60. The company forecast full-year revenue of $1.31 billion to $1.39 billion, up from $1.28 billion to $1.35 billion.
Analysts expected full year earnings per share of $1.46 on revenue of $1.34 billion.
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