Zacks Investment Research downgraded
Titan International Inc.
) to a Zacks Rank #5 (Strong Sell) on March 1, 2013.
Why the Downgrade?
Despite reporting its record annual results on February 25, 2013,
a lackluster fourth quarter performance resulted in negative
sentiments for Titan International, and hence, the earnings for
the company witnessed a sharp fall. The Zacks Consensus Estimate
for 2013 went down by 6.7% to $2.51 per share while that for 2014
plummeted 12.7% to $2.88 per share.
Titan International reported adjusted earnings per share of 9
cents, down compared with 37 cents reported in the year-ago
quarter and 80.9% below the Zacks Consensus Estimate of 47 cents.
Revenue of $493.6 million represented a 22.5% improvement over
the year-ago quarter. The impact was, however, negated by a 28.4%
increase in cost of sales that led to a12.0% fall in gross
Gross margin came down by 410 basis points over the year-ago
quarter. Along with this, the results also suffered due to an
increase in selling, general, and administrative, research and
development, interest and tax expenses.
BRIGGS & STRATT (BGG): Free Stock Analysis
CNH GLOBAL NV (CNH): Free Stock Analysis
DEERE & CO (DE): Free Stock Analysis
TITAN INTL INC (TWI): Free Stock Analysis
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Decreasing earnings estimates together with two quarters of both
positive and negative earnings surprise, with an average of
-9.6%, raises skepticism over Titan International's performance
in the quarters ahead. For 2013, we have an Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of -4.8%.
Other Stocks to Consider
Other stocks to watch out for in the industry are
Briggs & Stratton Corporation
CNH Global NV
Deere & Company
), each holding a Zacks Rank #2 (Buy).