By Michael Susin
Titan Machinery backed its guidance for fiscal 2025 despite missing second-quarter earnings expectations.
The full service agricultural and construction equipment dealer network operator on Thursday swung to a loss of $4.3 million in the second quarter ended July 31, or a loss of 19 cents a share, compared with $31.3 million, or $1.38 a share, in the same quarter last year. Analysts polled by FactSet were looking for earnings of 29 cents a share.
Revenue for the quarter was $633.7 million, compared with last year's $642.6 million and the $645.3 million analysts were expecting.
The company said second-quarter performance reflects a challenging market backdrop that is impacting farmer sentiment and agriculture equipment sales.
Looking ahead, it continues to expect between 0 cents and 50 cents in adjusted earnings per share for fiscal 2025. Titan also continues to see revenue in its agriculture segment declining between 5% and 10%. For its construction segment, it now sees revenue coming in between a decline of 2.5% to an increase of 2.5%.
"In response to the softening of retail demand amid a difficult backdrop of significantly lower net farm income, we have implemented a more aggressive strategy to catalyze sales and reduce our inventories. This strategy requires compression of our near-term equipment margins, and we believe these deliberate actions will help shorten the impact of this contractionary cycle on our performance, and accelerate our return to a more normalized margin profile as the industry cycle progresses," President and Chief Executive Officer Bryan Knutson said.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
August 29, 2024 07:08 ET (11:08 GMT)
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