Titan Machinery Inc. (NASDAQ:TITN) shares fell 2.07% in pre-market trading on Thursday after the agricultural and construction equipment dealer reported a wider-than-expected second-quarter loss, although revenue came in ahead of Wall Street forecasts.
The company recorded a loss of $0.40 per share, compared with analyst expectations for a loss of $0.35
Revenue reached $496.4 million, exceeding the consensus estimate of $486.51 million. Sales were nevertheless 9.2% lower than the $546.4 million reported in the corresponding period last year, primarily reflecting softer equipment demand as pressure on grower profitability continued. Gross margin improves as inventory levels decline Despite the weaker sales environment, Titan Machinery recorded an improvement in gross profitability.
Gross margin expanded by 150 basis points to 18.6% from 17.1% a year earlier. The increase reflected stronger equipment margins as the company continued reducing aged inventory, alongside a greater contribution from higher-margin parts and service revenue. “Our fiscal 2027 second quarter results reflect continued progress on improving inventory health, with equipment margins in our Agriculture segment coming in modestly ahead of our expectations for the quarter,” stated Bryan Knutson, President and Chief Executive Officer. Titan also benefited from lower financing costs.