Titan International, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Titan International, Inc. (NYSE:TWI) shareholders are probably feeling a little disappointed, since its shares fell 5.9% to US$7.01 in the week after its latest first-quarter results. The results don't look great, especially considering that the analysts had been forecasting a profit and Titan International delivered a statutory loss of US$0.01 per share. Revenues of US$491m did beat expectations by 5.7% though. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, Titan International's four analysts currently expect revenues in 2025 to be US$1.86b, approximately in line with the last 12 months. Titan International is also expected to turn profitable, with statutory earnings of US$0.12 per share. In the lead-up to this report, the analysts had been modelling revenues of US$1.84b and earnings per share (EPS) of US$0.25 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

View our latest analysis for Titan International

The consensus price target held steady at US$11.75, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Titan International analyst has a price target of US$16.00 per share, while the most pessimistic values it at US$10.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Titan International's revenue growth is expected to slow, with the forecast 0.5% annualised growth rate until the end of 2025 being well below the historical 7.6% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Titan International.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Titan International. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Titan International's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Titan International. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Titan International going out to 2026, and you can see them free on our platform here..

You can also see whether Titan International is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.