Associated Press, Published April 10 2013
Titan Machinery’s 4th-quarter net income fallsWEST FARGO – Titan Machinery Inc.’s fiscal fourth-quarter net income fell 12.5 percent as operating expenses rose and its construction segment dealt with tough industry conditions.
The agricultural and construction equipment provider’s earnings missed Wall Street’s estimates while revenue topped analysts’ view. Its fiscal 2014 earnings forecast was below analysts’ expectations while its revenue outlook beat.
Shares dropped more than 15 percent in premarket trading Wednesday.
Titan reported net income available to common shareholders of $15.4 million, or 73 cents per share, for the period ended Jan. 31, compared with $17.6 million, or 84 cents per share, a year ago. Analysts surveyed by FactSet forecast earnings of 92 cents per share.
Titan’s stock declined $3.97, or 15.3 percent, to $22.13 with about 45 minutes left before the market open.
Revenue rose 29 percent to $784.5 million from $607 million on strength across its business segments. Wall Street expected $685.4 million in revenue.
While cost of revenue climbed for each unit, the biggest jump came in the equipment division, with cost of revenue increasing to $614.8 million from
Operating expenses increased to $72.2 million from $60.3 million.
For the year, Titan earned $42 million, or $2 per share. In the previous year the West Fargo-based company earned $43.8 million, or $2.18 per share.
Annual revenue increased 33 percent to $2.2 billion from $1.66 billion.
The company anticipates fiscal 2014 earnings between $2 and $2.30 per share on revenue in a range of $2.35 billion to $2.55 billion. Analysts expect earnings of $2.60 per share on revenue of $2.28 billion.