Titan Machinery Inc., which operates agriculture and construction equipment stores, said Thursday third-quarter profit fell 30 percent as expenses climbed and a challenging construction industry resulted in lower sales in that segment.
The company reported net income of $5.7 million, or 32 cents per share, compared with $8.2 million, or 45 cents per share, a year ago.
Revenue rose 6 percent to $227 million from $214 million a year ago, with all three revenue sources — equipment, parts and service — showing gains.
The results matched the expectations of analysts surveyed by Thomson Reuters. They expected 32 cents per share on revenue of $208.7 million.
Costs increased to $187.4 million from $176.6 million. Operating expenses also climbed.
Shares fell 27 cents, or 2.3 percent, to $11.64 in afternoon trading.
The company said it experienced record agriculture results from last year. However, its concentration of construction stores increased, and those stores are generating lower sales due to the continued challenges in that market.
The company completed six acquisitions and opened a new store this year and expects additional acquisitions in 2010.
It raised its revenue range for the full year ending Jan. 31, 2010, to between $770 million and $800 million compared to the previous range of $750 million to $790 million.
The company narrowed its expected net income range to $16.6 million to $17.6 million from the previous $16.6 million to $18.7 million.
The earnings per share range also was narrowed to 92 cents to 98 cents compared to its previous range of 92 cents to $1.04.