Agricultural and farm machinery company AGCO (NYSE: AGCO) will be reporting results this Thursday before market open. Here’s what to look for.
AGCO missed analysts’ revenue expectations last quarter, reporting revenues of $2.61 billion, flat year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ EPS estimates.
Is AGCO a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting AGCO’s revenue to decline 6.1% year on year, a further deceleration from the 4.7% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. AGCO has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at AGCO’s peers in the heavy machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Lindsay delivered year-on-year revenue growth of 5.2%, beating analysts’ expectations by 7.3%, and Wabtec reported revenues up 8.1%, falling short of estimates by 2.6%. Lindsay’s stock price was unchanged after the resultswhile Wabtec was down 2.5%.
Read our full analysis of Lindsay’s results here and Wabtec’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the heavy machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.7% on average over the last month. AGCO is down 12.7% during the same time and is heading into earnings with an average analyst price target of $125.07 (compared to the current share price of $102.70).
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