TWI Earnings Prediction
The chart below shows how TWI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TWI sees a +0.37% change in stock price 10 days leading up to the earnings, and a -5.06% change 10 days following the report. On the earnings day itself, the stock moves by -0.71%. This data can give you a slight idea of what to expect for the next quarter's release.
TWI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
383.57M
-1.70%
-14.38%
Gross Margin
10.09%
-29.54%
-20.05%
Operating Margin
-4.44%
-183.62%
-648.15%
Net Margin
0.32%
196.97%
-107.88%
EPS
0.02
150.00%
-108.00%
No Data Available
TWI Earnings Analysis
Titan International Inc Corporation (TWI.N) Earnings Conference Call
Positive
Farmer Sentiment Improvement: Improvement in farmer sentiment due to government support and positive crop prices, with corn prices over 15% higher than last year.
Brazil Market Demand Growth: Increased demand expected in Brazil, with a strong performance from the local team driving market share and managing costs effectively.
Increased Production Outlook: Positive customer conversations indicating a willingness to ramp up production in the second half of the year, reflecting improved demand outlook.
Aftermarket Business Stability: Steady performance of the aftermarket business, which is expected to continue as a reliable source of revenue.
Acquisition Integration Success: Successful integration of the Carlstar acquisition, enhancing product offerings and synergies across segments.
Gross Margin Resilience: Strong gross margins maintained at nearly 11% during a cyclical low, significantly higher than previous lows, indicating operational efficiency.
Aftermarket Business Profitability: Consumer segment showing profitability with higher-margin aftermarket business accounting for over 60% of sales.
Construction and Mining Demand: Positive outlook for the construction and mining markets, with strong precious metal prices driving demand for aftermarket parts.
Innovation and R&D Investment: Strategic focus on innovation and product development, with increased R&D investment to support future growth.
Q1 2025 Financial Outlook: Financial guidance for Q1 2025 indicates expected sequential improvement in sales and adjusted EBITDA, with a range of $450 million to $500 million in revenue.
Negative
Q4 Operating Loss: Operating loss in Q4 was $17 million, reflecting reduced sales and operational expenses.
SG&A Expense Increase: SG&A expenses increased to $51 million or 13% of sales, up from $32 million or 8% in the prior year, attributed to the Carlstar acquisition.
Negative Free Cash Flow: Free cash flow was negative $4.6 million in Q4, with expectations for Q1 to also show negative free cash flow due to increased accounts receivable.
Net Debt and Leverage Ratio: Net debt at quarter end was $369 million, with a leverage ratio of 2.9x trailing 12-month adjusted EBITDA, compared to approximately 1x entering 2024.
High Tax Expense Impact: Elevated tax expense of $12 million for the year, with an effective rate of 143%, primarily due to low domestic volume and inability to fully deduct interest expenses.
Operational Capacity Decline: Production during the 2024 low was nearly 20% of what was seen in 2019, indicating a significant drop in operational capacity.
Cyclical Downturn Challenges: Despite a positive outlook, the company is still navigating a cyclical downturn with low demand and operational challenges.
TWI FAQs
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TWI Earning Call Sentiment
Titan International, Inc. (TWI) Q4 2024 Earnings Call Transcript
TWI.N
-15.09%Positive
The earnings call reveals financial strain with a negative free cash flow and increased net debt. Despite higher margins and share repurchases, the company faces cyclical demand lows and operational losses. The Q&A section highlights inventory challenges and vague responses on recovery timelines, raising concerns. The financial metrics and cautious guidance suggest a negative sentiment, potentially leading to a stock price decline.
