ServiceTitan (NASDAQ:TTAN) Posts Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Key Points

• ServiceTitan beat quarterly expectations: The company reported adjusted EPS of $0.40 versus the $0.35 consensus estimate, while revenue of $292.76 million exceeded expectations of $285.90 million. However, it posted a negative net margin of 13.44% and negative return on equity of 5.59%.
• Shares fell 7.2% to $81.58 following the earnings release, with trading volume significantly above average. The stock remains below its 52-week high of $119.99.
• Analysts remain broadly bullish, but insiders have been selling: Fourteen analysts rate TTAN a Buy, with an average price target of $108.93, while insiders sold 514,837 shares worth about $39.2 million over the past three months.

ServiceTitan (NASDAQ:TTAN - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported $0.40 EPS for the quarter, topping the consensus estimate of $0.35 by $0.05, FiscalAI reports. The company had revenue of $292.76 million during the quarter, compared to the consensus estimate of $285.90 million. ServiceTitan had a negative net margin of 13.44% and a negative return on equity of 5.59%.

ServiceTitan Trading Down 7.2%

Shares of TTAN stock traded down $6.34 during trading on Tuesday, reaching $81.58. 3,375,669 shares of the company's stock traded hands, compared to its average volume of 1,422,822. ServiceTitan has a 1 year low of $54.17 and a 1 year high of $119.99. The company has a market capitalization of $7.78 billion, a P/E ratio of -56.26 and a beta of 0.11. The firm's 50-day moving average is $84.45 and its 200 day moving average is $72.57.

Insider Buying and Selling at ServiceTitan

In other news, Director Byron B. Deeter sold 8,845 shares of ServiceTitan stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $63.35, for a total value of $560,330.75. Following the completion of the transaction, the director directly owned 13,782 shares in the company, valued at approximately $873,089.70. The trade was a 39.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Ara Mahdessian sold 38,287 shares of the company's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $84.89, for a total value of $3,250,183.43. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 514,837 shares of company stock worth $39,203,222. Company insiders own 39.89% of the company's stock.

Hedge Funds Weigh In On ServiceTitan

A number of large investors have recently added to or reduced their stakes in TTAN. Northwestern Mutual Wealth Management Co. boosted its holdings in ServiceTitan by 1,005.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 431 shares of the company's stock valued at $46,000 after acquiring an additional 392 shares during the period. Sunbelt Securities Inc. grew its position in ServiceTitan by 391.0% during the 4th quarter. Sunbelt Securities Inc. now owns 491 shares of the company's stock worth $52,000 after acquiring an additional 391 shares during the last quarter. Parallel Advisors LLC boosted its position in ServiceTitan by 161.7% during the 3rd quarter. Parallel Advisors LLC now owns 526 shares of the company's stock valued at $53,000 after buying an additional 325 shares during the period. Daiwa Securities Group Inc. purchased a new position in shares of ServiceTitan in the fourth quarter valued at about $68,000. Finally, EverSource Wealth Advisors LLC purchased a new stake in shares of ServiceTitan during the second quarter worth about $94,000.

Analyst Upgrades and Downgrades

TTAN has been the subject of a number of research analyst reports. UBS Group reaffirmed a "buy" rating on shares of ServiceTitan in a research report on Wednesday, July 22nd. TD Cowen boosted their price target on shares of ServiceTitan from $110.00 to $125.00 and gave the company a "buy" rating in a research note on Friday, June 5th. Stifel Nicolaus set a $125.00 price objective on shares of ServiceTitan in a research note on Wednesday, May 27th. Piper Sandler boosted their target price on shares of ServiceTitan from $100.00 to $115.00 and gave the stock an "overweight" rating in a research report on Friday, June 5th. Finally, Citigroup reaffirmed a "neutral" rating on shares of ServiceTitan in a research report on Monday, June 8th. Fourteen equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $108.93.

ServiceTitan Company Profile

ServiceTitan, Inc NASDAQ: TTAN is a cloud-based software provider specializing in end-to-end business management solutions for residential and commercial trade contractors. The company's platform integrates customer relationship management, scheduling and dispatch, mobile workforce management, invoicing, payments and reporting tools into a single suite. By automating key back-office processes, ServiceTitan helps field service businesses improve operational efficiency, enhance customer experience and drive revenue growth.

At the core of ServiceTitan's offering is a mobile application that allows technicians to access job details, update work orders, capture signatures and process payments from the field.

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