Financial News
AGCO Corporation (AGCO) Q3 Earnings Report Preview: What To Look For
Agricultural and farm machinery company AGCO (NYSE:AGCO) will be reporting earnings tomorrow before the bell. Here’s what you need to know.
AGCO Corporation missed analysts’ revenue expectations by 6.8% last quarter, reporting revenues of $3.25 billion, down 15.1% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations.
Is AGCO Corporation a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting AGCO Corporation’s revenue to decline 16.1% year on year to $2.9 billion, a reversal from the 10.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.08 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AGCO Corporation has missed Wall Street’s revenue estimates five times over the last two years.
Looking at AGCO Corporation’s peers in the agricultural machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Lindsay’s revenues decreased 7.3% year on year, beating analysts’ expectations by 6.5%, and Alamo reported a revenue decline of 4.4%, in line with consensus estimates. Lindsay traded up 6.5% following the results while Alamo was also up 10.6%.
Read our full analysis of Lindsay’s results here and Alamo’s results here.
Investors in the agricultural machinery segment have had steady hands going into earnings, with share prices flat over the last month. AGCO Corporation is up 2.6% during the same time and is heading into earnings with an average analyst price target of $110.67 (compared to the current share price of $99.39).
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