TITN Raises FY12 Guidance

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Last Update: 09-Jun-11 10:07 ET

Titan Machinery (TITN $28.84 +1.74) reported first quarter earnings of $0.40 per share, $0.18 better than the Capital IQ Consensus Estimate of $0.22.

Revenues rose 54.7% year/year to $318 million versus the $257.5 million consensus.

For its fiscal year 2012, the company raised earnings guidance to $1.53 to $1.63 versus $1.48 Capital IQ Consensus Estimate, up from $1.50 to $1.60. On the top line, the company raised revenues guidance to $1.310 billion to $1.385 billion versus the $1.35 billion Capital IQ Consensus Estimate, up from $1.275 billion to $1.350 billion.

All three of the co's main revenue sources -- equipment, parts and service -- contributed to this period-over-period revenue growth. "We are pleased with our strong agriculture and construction business results for the first quarter of fiscal 2012. These results were driven by organic and acquired growth in both businesses. Agriculture same store sales increased 37.6% and our Construction same store sales increased 33.1%.

In addition, our Construction business generated pre-tax income of $0.7 million for the first quarter compared to a loss of $1.9 million for the same period last year." We continue to experience strong demand for our equipment offerings, parts and service in both our Agriculture and Construction segments. In recent months, we have closed several strategic agriculture and construction acquisitions and we now have dealerships in eight states throughout the upper Midwest and Northwest. We see additional growth opportunities through acquisitions, and with our recently completed follow-on equity offering of $75 million, we have the financial ability to capitalize on these opportunities and execute on our long-term business strategy of strong organic and acquired growth.