Titan Machinery Posts Narrower-Than-Expected Q1 Loss

reported a narrower-than-expected loss for the first quarter on Thursday. The West Fargo, North Dakota-based company reported a quarterly loss of $6.2 million, or $0.29 per share, versus $6.5 million, or $0.31 per share, in the year-ago period. Excluding non-recurring items, the company lost $0.13 per share. Its revenue declined 24.1 percent year-over-year to $353.2 million. However, analysts were expecting a loss of $0.22 per share on revenue of $355.2 million. The average estimate among 3 Estimize users was for a loss of $0.23 per share and revenue of $351.89 million. Its equipment sales dropped to $245.0 million for the first quarter, versus $345.0 million in the year-ago quarter. Parts sales slipped to $61.5 million from $68.4 million, while revenue generated from service fell to $32.9 million from $37.1 million. Its revenue from rental and other dipped to $13.8 million from $15.0 million. Its gross profit margin widened to 17.1 percent from 16.3 percent. Operating expenses fell to $57.1 million, versus $71.2 million. Titan Machinery ended the first quarter with cash of $104.4 million. David Meyer, Titan Machinery's Chairman and Chief Executive Officer, stated, "Our financial results in the first quarter were in-line with our expectations, as ongoing headwinds in the agriculture industry continue to impact our results. In the first quarter, we remained focused on managing the controllable aspects of our business, including implementing a realignment plan that significantly reduces our operating costs and is expected to generate approximately $20 million in cost savings beginning in the current fiscal year. We also continue to diligently manage our inventory levels and expect to achieve meaningful reductions in fiscal 2016." The company reaffirmed its forecast for FY16. Titan Machinery shares gained 0.97 percent to close at $13.51 yesterday.