What was the cause?
TWI Stock ,It was predicted that 2018 would be a good year for tire maker Titan International (TWI -1.55%) however it’s not as if it will. The Titan International stock price plummeted 30.6 percent (as at 11:30 p.m. (ET)) due to an earnings report for the second quarter which was wildly off analyst expectations.
Earnings per share of $0.02 was far below analysts’ expectations for $0.18 profit , in spite of the fact that Titan recorded revenues that were $428.9 million, well ahead of Wall Street’s expectations of $427.3 millions in revenue.
So , what’s next?
The sales actually increased by to an astounding 18% over the course of the year at Titan and the $0.02-per-share profits were a more than $0.17 per share Titan was unable to recover in the year prior. Chief Executive Officer Paul Reitz was right to declare”that “Titan experienced another strong quarter of double-digit, year-over-year quarterly revenue growth, along with delivering improved operational performance.” The results weren’t as the company Wall Street had hoped for.
Titan has blamed “currency headwinds, primarily in Latin America and Russia, which … negatively impacted our reported EPS” in the reason for the difference between earnings and expectations, and said it was “the currency impact does not take away from the positive execution across many of our business units during the quarter.”
Now , what do you do?
Management remained on its original guidance for the remainder of this year, and is cutting its expectations as the outlook for the future is clearer. Sales are expected to rise between 9 between 12% and 10% this year. Gross margin is expected to be improved “between 25 percent and 40 percent,” and operating expenses should decrease from year to year. Management did not provide an exact GAAP (generally recognized accounting practices) number for the amount they expect to earn but it did say that the company’s EBITDA (earnings before taxes, interest amortization, depreciation, and taxes) could be as high as double compared to the previous year.
Titan International Returns vs. S&P
| 1 YEAR | 5 YEAR | 5 YEAR ANNUALIZED | SINCE IPO | |
|---|---|---|---|---|
| TWI | ||||
| S&P | 0% |
Titan International Company Info
The Company is a manufacturer of wheels, tires and assemblies for off-highway vehicles used in the agricultural, earthmoving/construction and consumer markets.
Assets
QUARTERLYANNUAL
| Q3 2022 | YOY CHANGE | |
|---|---|---|
| Net Cash | $116.58M | +23.2% |
| Accounts Receivable | $282.15M | +7.9% |
| Inventory | 412.967 | +10.7% |
Liabilities
QUARTERLYANNUAL
| Q3 2022 | YOY CHANGE | |
|---|---|---|
| Long Term Debt | $420.80M | -9.9% |
| Short Term Debt | $39.27M | -0.6% |
Ratios
QUARTERLYANNUAL
| Q3 2022 | YOY CHANGE | |
|---|---|---|
| Return On Assets | 13.5% | +2,962.8% |
| Return On Invested Capital | -3.6% | -43.2% |
Cash Flow
QUARTERLYANNUAL
| Q3 2022 | YOY CHANGE | |
|---|---|---|
| Free Cash Flow | $40.03M | +616.9% |
| Operating Free Cash Flow | $53.32M | +250.9% |
Valuation
QUARTERLYANNUAL
| Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | YOY CHANGE | |
|---|---|---|---|---|---|
| Price to Earnings | 13.91 | 15.63 | 7.37 | 4.75 | -95.3% |
| Price to Book | 3.84 | 4.27 | 3.56 | 2.38 | -3.0% |
| Price to Sales | 0.39 | 0.49 | 0.46 | 0.36 | +29.2% |
| Price to Tangible Book Value | 3.84 | 4.29 | 3.58 | 2.39 | -2.5% |
| Price to Free Cash Flow TTM | 44.99 | 82.73 | 28.49 | 11.30 | – |
| Enterprise Value to EBITDA | 31.36 | 24.72 | 16.68 | 18.44 | -28.2% |
| Free Cash Flow Yield | 2.2% | 1.2% | 3.5% | 8.9% | – |
| Return on Equity | 24.3% | 28.8% | 54.0% | 65.6% | +2,288.3% |
| Total Debt | $504.87M | $538.42M | $500.21M | $460.07M | -9.2% |
