Titan Machinery Inc. (NASDAQ:TITN) Reports Impressive 4Q11 Results & FY12 Outlook Even Better

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Titan Machinery Inc. (NASDAQ:TITN) reported fourth fiscal quarter results that were massively above Street estimate on Monday. The Company reported fourth fiscal quarter net revenue of $368.1 million, up 45.9% year over year compared to $252.3 million a year ago. Equipment sales were $310.9 million for the fourth quarter of fiscal 2011, compared to $203.8 million in the fourth quarter last year. Parts sales were $29.9 million for the fourth quarter of fiscal 2011, compared to $27.7 million in the fourth quarter last year. Revenue generated from service was $19.6 million for the fourth quarter of fiscal 2011, compared to $14.9 million in the fourth quarter last year. Net income of $10.4 million or 57 cents a share has been posted for the fourth fiscal quarter compared to $3.4 million or 19 cents a share in the same quarter a year ago, above the consensus of 35 cents a share. Agriculture comps were up 41%, construction equipment (CE) comps up 49%, and total comps up 42%.  The booming farm economy has been supplanted with a rebounding market for CE. Inventories were up 24% on the 45.9% revenue increase, showing strong NEW and USED equipment cycles. Gross Profit Margins of 15.24% has been recorded for the quarter up from 14.66% last year driven by strong pricing and manufacturer incentives. The Company also said that it expects to report revenue for fiscal 2012 to be in a range of $1.275 billion to $1.350 billion. Net income for the year 2012 of $27.5 million to $29.4 million has been expected resulting in earnings per diluted share (EPS) to be in the range of $1.50 to $1.60. Analysts were expecting the Company to report revenue of $1.20 billion, net income of $25.27 million and EPS of $1.38 for fiscal 2012. Shares of the company went up by 14.96% to $30.97. Volume of 1.89 million shares has been traded compared to the daily average of 207,686 shares. The stock surged to new annual high of $31.73, its annual low being $11.93. The market capital of the stock stands at $554.38 million with P/E of 36.54. Titan Machinery Inc. owns and operates a network of agricultural and construction equipment stores in the United States. The Company is a retail dealer of Case IH Agriculture equipment and a retail dealer of New Holland Agriculture, Case Construction and New Holland Construction equipment in the United States. The Company operates in two segments: Agriculture and Construction.