Titan Machinery stock soared Wednesday after the heavy equipment retailer topped earnings and revenue views with its third-quarter 2023 results.
The agricultural and construction equipment dealership chain spiked on earnings, positioning shares for a starting-bell breakout Wednesday morning. Titan Machinery stock soared 26.23% to 44.03 during market trading.
Other heavy equipment names including Deere, Cummins, Caterpillar and United Rentals are all showing signs of strength in the current market.
Titan Machinery Earnings
Estimates: Analysts forecast earnings growing 21% to $1.16 per share for the West Fargo, N.D.-based outfit. Wall Street also predicted revenue increasing 31% to $597 million in Q3.
Results: The heavy equipment seller reported earnings ballooning 90% to $1.83. Sales surged 47% to $669 million in the third quarter.
The company's 109 locations primarily sell and service agricultural and farming equipment. Those markets have seen supply chain disruptions and price surges similar to those affecting automakers over the past few years. CEO David Meyer said in a statement Wednesday that the "ongoing strength of the agriculture sector" was a major reason for the company's record earnings in Q3.
In addition, Titan Machinery also announced Wednesday it had increased its fiscal year 2023 guidance. The company now expects EPS of $4.55 — $4.85, up from the previous $3.70-$4.00. Titan Machinery expects revenue from its agriculture business segment to be up around 55%-60% in fiscal year 2023. Also, the company forecasts its construction and international business segments flat to 5% lower.
Titan Machinery Stock: A Breakaway Gap?
Titan Machinery stock scored a huge breakout on Wednesday, after several weeks of tight trade in a four-week handle, formed within a yearlong consolidation. The handle has a buy point at 36.47, and the overall base shows 38.68 buy point, according to MarketSmith analysis.
Titan shares rallied 14% higher in early trade, sending the stock beyond the conventional buy range in a breakaway gap breakout. In instances like these, investors should set their charts five-minute increments, and use the highest point shown in the first five minutes of trade as the entry point.
Titan Machinery stock ranks first in the Retail/Wholesale-Building Products industry group. TITN shares have a Composite Rating of 98. It has a 93 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement. The EPS rating is 99.
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