UPDATE 2-Titan Machinery Q4 profit lags Street

* Q4 EPS $0.19 vs est $0.26

* Q4 rev $252.3 mln vs est $207.2 mln

* Sees 2011 rev $920 mln-$980 mln vs est $829.9 mln

* Shares down as much as 14 pct

(Recasts; Adds analyst comment, updates share movement)

By Divya Sharma

BANGALORE, April 15 (BestGrowthStock) – Titan Machinery Inc
(TITN.O: ), which runs agricultural and construction equipment
stores, posted a lower-than-expected quarterly profit, hurt by
higher expenses, and forecast a 2011 earnings range that was
largely below estimates, sending its shares down 14 percent.

The company, which competes with Agco Corp (AGCO.N: ) and
Deere & Co (DE.N: ), sees 2011 earnings of 92 cents to $1.02 per
share, on revenue of $920 million to $980 million.

Analysts on average were expecting earnings of $1.02 a
share, before special items, on revenue of $829.9 million
according to Thomson Reuters I/B/E/S.

While their agriculture segment is strong, construction —
which forms 15 percent of their business — is facing a
difficult operating environment, said Sidoti & Co analyst Paul
Mammola, who has a “buy” rating on the stock.

“We thought that the construction equipment segment could
turn into a 10 to 15 cent drag on earnings per share in 2011,
but it turns out it could be more than that,” Mammola said.

The company which houses CNH Global’s (CNH.N: ) Case and New
Holland brands, said it completed six acquisitions and two
store openings in 2010.

As Titan enters fiscal 2011, farmers in the Upper Midwest
continue to have strong balance sheets and ample access to
credit and a favourable operating environment, Chief Executive
David Meyer said in a statement.

For the fourth quarter, net income was $3.4 million, or 19
cents a share, compared with $3.2 million, or 18 cents a share,
a year ago.

Revenue rose 33.5 percent to $252.3 million. Total cost of
revenue rose 38 percent to 215.3 million.

“The shift in mix away from the high margin service parts
segment and losses in the construction equipment segment
weighed down results,” Stephens Inc analyst Rick Nelson said.

Analysts on average had expected earnings of 26 cents a
share, before special items, on revenue of $207.2 million.

Shares of the company were down 11 percent at $13.43 late
Thursday morning on Nasdaq. The touched a low of $12.96 earlier
in the session.
Stock Market Report

(Reporting by Divya Sharma in Bangalore; Editing by Maju
Samuel, Jarshad Kakkrakandy)

UPDATE 2-Titan Machinery Q4 profit lags Street