Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Shares of Titan International, Inc. Plunged 15% on Wednesday

What happened 

Shares of giant tire supplier Titan International, Inc. (NYSE: TWI  ) fell as much as 14.8% on Wednesday after the company announced worse-than-expected earnings. The stock recovered slightly in the morning, and by 12:30 p.m. EDT, it was only down 10.7%.  

So what

Revenue only fell by a half-million dollars to $307.3 million in the fourth quarter, coming in ahead of the $305.5 million analysts had expected. And while net loss improved from $57.4 million a year ago to $14.1 million, adjusted loss per share of $0.24 was worse than the $0.09 loss Wall Street anticipated. 

Heavy equipment shown with giant tires and spare tires alongside.

Image source: Getty Images.

Management also announced that market improvements have led the company to abandon the idea of selling the ITM S.p.A. business, which could have resulted in more than $100 million in proceeds. Long term, this may be the right move, but it's leaving the balance sheet more stretched than it would have been had a sale been completed. 

Now what

The core challenge is that investors are hoping for a turnaround in Titan International's business and it's taking longer than hoped. Management thought last summer was the bottom for the market, but the decline in revenue showed that a recovery isn't quite taking hold. In the long run, there could still be a big opportunity for growth given the global economic recovery and slight upturn in some commodities. But today the signs of improvement weren't as strong as hoped and that's why shares are falling.

10 stocks we like better than Titan International
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Titan International wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of February 6, 2017

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 4008387, ~/Articles/ArticleHandler.aspx, 3/23/2017 12:25:16 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
Change up DOW 20733.1 71.8 0.4%
Change up S&P 500 2357.2 8.7 0.4%
Change up NASD 5837.2 15.6 0.3%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

3/23/2017 12:09 PM
TWI $9.66 Up +0.21 +2.22%
Titan Internationa… CAPS Rating: ****

Article registration testing

Revisit this page

Clear article's cache and revisit this page

Or, visit the current page, forcing Test ID to article:interrupt:106919 and

Tookie Value = 62680339911783032937335675566088