The record setting days for the big machinery sellers are over.
Titan Machinery Inc.
) missed the Zacks Consensus Estimate for its fiscal fourth quarter
The agriculture and construction equipment industry is facing a
tough 2013. Farmers are still recovering from last year's drought
and the construction segment, while improving, is only slowly
coming off the mat. Fiscal 2014 estimates have been cut. Titan has
fallen to a Zacks Rank #5 (Strong Sell).
Titan Machinery doesn't make the equipment, it simply sells it at
106 dealerships in the United States and 14 in Europe. It sells the
CNH Brands, which is owned by Fiat, including CaseIH, New Holland
Agriculture, Case Construction, New Holland Construction Kobelco
and CNH Capital.
Big Miss in the Fiscal Fourth Quarter
On Apr 10, Titan reported its fiscal fourth quarter results and
missed the Zacks Consensus by 18 cents. It was the third miss in
the last four quarters.
The agriculture segment appears to be on its way to a recovery from
last year's drought. Titan said it performed well in the fourth
quarter. However, it was the construction business which wasn't
quite so great as it still faced "difficult industry conditions."
Guidance Below Consensus
Titan provided full year Fiscal 2014 guidance of $2.00 to $2.30.
This was well below the Zacks Consensus of $2.62.
Not surprisingly, 5 estimates have been cut since the earnings
report which has pushed the Zacks Consensus down to $2.19.
Shares got pummeled on the report.
Some analysts believe this is a buying opportunity for long-term
investors. Remember, the Zacks Rank is a short-term recommendation
of 1 to 3 months. So in the short term, according to the Zacks
Rank, Titan is a Strong Sell.
However, if you'd still like to be in this sector and you want to
buy right now, you might want to consider buying the brands that
) is a Zacks Rank #2 (Buy).
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Tracey Ryniec is the Value Stock Strategist for Zacks.com. She
is also the Editor of the
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