US$17.25 - That's What Analysts Think Titan Machinery Inc. (NASDAQ:TITN) Is Worth After These Results

Investors in Titan Machinery Inc. (NASDAQ:TITN) had a good week, as its shares rose 6.3% to close at US$15.11 following the release of its second-quarter results. Revenues came in at US$634m, in line with forecasts and the company reported a statutory loss of US$0.19 per share, roughly in line with expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Titan Machinery

Taking into account the latest results, the current consensus, from the four analysts covering Titan Machinery, is for revenues of US$2.65b in 2025. This implies a measurable 5.5% reduction in Titan Machinery's revenue over the past 12 months. Earnings are expected to tip over into lossmaking territory, with the analysts forecasting statutory losses of -US$0.23 per share in 2025. Before this latest report, the consensus had been expecting revenues of US$2.67b and US$0.31 per share in losses. Although the revenue estimates have not really changed Titan Machinery'sfuture looks a little different to the past, with a considerable decrease in the loss per share forecasts in particular.

These new estimates led to the consensus price target rising 17% to US$17.25, with lower forecast losses suggesting things could be looking up for Titan Machinery. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Titan Machinery analyst has a price target of US$25.00 per share, while the most pessimistic values it at US$13.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Titan Machinery's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 11% annualised decline to the end of 2025. That is a notable change from historical growth of 18% 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 5.5% 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Titan Machinery's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Titan Machinery analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Titan Machinery (2 are a bit unpleasant) 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.