Titan Machinery Inc. (NASDAQ:TITN) investors will be delighted, with the company turning in some strong numbers with its latest results. The results were impressive, with revenues of US$594m exceeding analyst forecasts by 33%, and statutory losses of US$0.58 were likewise much smaller than the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Titan Machinery after the latest results.
Following the recent earnings report, the consensus from five analysts covering Titan Machinery is for revenues of US$2.24b in 2026. This implies a not inconsiderable 16% decline in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 34% to US$1.75. Before this latest report, the consensus had been expecting revenues of US$2.19b and US$1.80 per share in losses. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrades to both revenue and loss per share forecasts for this year.
See our latest analysis for Titan Machinery
The consensus price target rose 7.8% to US$22.20, with the analysts encouraged by the higher revenue and lower forecast losses for next year. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Titan Machinery at US$25.00 per share, while the most bearish prices it at US$18.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 21% by the end of 2026. This indicates a significant reduction from annual growth of 17% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Titan Machinery is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Titan Machinery going out to 2028, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 1 warning sign for Titan Machinery that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.