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Titan International Increases Sales but Misses Estimates on Earnings

Thursday - 4/25/2013, 2:00am  ET

Titan International reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Titan International met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share contracted significantly.

Margins shrank across the board.

Revenue details
Titan International reported revenue of $578.4 million. The five analysts polled by S&P Capital IQ expected sales of $586.4 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $463.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.36. The six earnings estimates compiled by S&P Capital IQ predicted $0.37 per share. Non-GAAP EPS of $0.36 for Q1 were 54% lower than the prior-year quarter's $0.78 per share. GAAP EPS of $0.30 for Q1 were 56% lower than the prior-year quarter's $0.68 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 16.1%, 360 basis points worse than the prior-year quarter. Operating margin was 8.3%, 440 basis points worse than the prior-year quarter. Net margin was 3.4%, 420 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $637.7 million. On the bottom line, the average EPS estimate is $0.63.

Next year's average estimate for revenue is $2.47 billion. The average EPS estimate is $2.23.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 209 members out of 233 rating the stock outperform, and 24 members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Titan International a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Titan International is buy, with an average price target of $28.00.

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This article was originally published as Titan International Increases Sales but Misses Estimates on Earningson Fool.com

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