Agricultural and farm machinery company AGCO (NYSE: AGCO) will be reporting earnings this Friday morning. Here’s what to look for.
AGCO beat analysts’ revenue expectations by 5.9% last quarter, reporting revenues of $2.64 billion, down 18.8% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is AGCO a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting AGCO’s revenue to decline 4.2% year on year to $2.49 billion, improving from the 24.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.22 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AGCO has missed Wall Street’s revenue estimates six 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 posted flat year-on-year revenue, beating analysts’ expectations by 1.6%, and Caterpillar reported revenues up 9.5%, topping estimates by 6.1%. Lindsay traded down 4.9% following the results.
Read our full analysis of Lindsay’s results here and Caterpillar’s results here.
There has been positive sentiment among investors in the heavy machinery segment, with share prices up 2.3% on average over the last month. AGCO is up 1.1% during the same time and is heading into earnings with an average analyst price target of $121.62 (compared to the current share price of $108.30).
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