We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AGCO Corp. (AGCO - Free Report) delivered an adjusted EPS of $2.32 in first-quarter 2024 compared with the prior-year quarter’s $3.51. The reported figure topped the Zacks Consensus Estimate of $2.29.
Including one-time items, AGCO posted an EPS of $2.25 compared with the year-ago quarter’s $3.10.
Revenues decreased 12.1% year over year to $2.93 billion in the March-end quarter. The top line missed the Zacks Consensus Estimate of $2.99 billion. Excluding the favorable currency-translation impacts of 1%, net sales fell 13.1% year over year.
AGCO Corporation Price, Consensus and EPS Surprise
Cost of sales decreased 12.9% year over year to $2.16 billion in the first quarter. Gross profit decreased 10% year over year to $770 million in the reported quarter. The gross margin was 26.3% compared with the prior-year quarter’s 25.6%.
Selling, general and administrative expenses were $350 million compared with the year-ago quarter’s $332 million. Adjusted income from operations fell 27.8% year over year to $281 million. The operating margin was 9.6% compared with the year-earlier quarter’s 11.7%
Segmental Performance
Sales in the North America segment moved down 21% year over year to $730 million in the first quarter. The reported figure missed our estimate of $826 million. The segment reported an operating income of $42.4 million compared with the prior-year quarter’s $102.1 million. Our projection for the segment’s operating income was $74.1 million.
Sales in the South America segment decreased 39.8% year over year to $303 million. We expected the segment’s net sales to be $432 million. The segment reported an operating profit of $16.2 million compared with the prior-year quarter’s $99.5 million. Our estimate for the segment's operating income was $57.2 million. The downside was driven by lower commodity prices and farm income.
The EME (Europe/Middle East) segment’s sales were $1.73 billion compared with $1.70 billion in the year-ago period. The reported figure missed our estimate of $1.55 billion. EME’s operating income was $283 million compared with the year-ago quarter’s $239 million. We predicted EME’s operating income to be $211.3 million.
Sales in the Asia/Pacific segment were down 17.7% year over year to $168 million. We expected the segment’s sales to be $188 million. The segment registered an operating profit of $8 million, down 55.8% year over year. Our projection for the segment’s operating profit was $17.4 million.
Financial Update
AGCO Corp reported cash and cash equivalents of $2.46 million as of Mar 31, 2024, up from $596 million as of Dec 31, 2023. Net cash used in operating activities totaled $370 million in the quarter compared with $557 million in the year-ago quarter.
Guidance
AGCO Corp expects net sales of $13.5 billion for 2024. The company anticipates lower sales volumes to impact the 2024 results. This will be partially offset by modest positive pricing and favorable foreign currency translation. Considering these, management lowered its EPS projection to around $12 from the previously stated $13.15 for 2024.
Price Performance
The company’s shares have lost 7.2% in the past year against the the industry’s growth of 1.7%.
CNH Industrial N.V. came out with first-quarter 2024 earnings of 33 cents per share, beating the Zacks Consensus Estimate of 26 cents. This compares to earnings of 35 cents a year ago.
The company posted revenues of $4.82 billion for the quarter ended March 2024, surpassing the Zacks Consensus Estimate of $4.64 billion. The top line decreased 9.8% year over year.
Alamo Group Inc. (ALG - Free Report) reported first-quarter 2024 adjusted earnings per share of $2.67, which beat the Zacks Consensus Estimate of $2.66. The bottom line increased 4% year over year.
Revenues in the reported quarter increased 3.4% year over year to $426 million.
Farm Equipment Stock Awaiting Q1 Results
Deere & Company (DE - Free Report) is expected to release its second-quarter fiscal 2024 results soon.
The Zacks Consensus Estimate for the company’s earnings per share is pegged at $7.83 for the fiscal second quarter, suggesting a decline of 18.8% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $13.3 billion, indicating a year-over-year decrease of 17.7%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
AGCO Corp (AGCO) Tops Q1 Earnings Estimates, Lowers '24 View
AGCO Corp. (AGCO - Free Report) delivered an adjusted EPS of $2.32 in first-quarter 2024 compared with the prior-year quarter’s $3.51. The reported figure topped the Zacks Consensus Estimate of $2.29.
Including one-time items, AGCO posted an EPS of $2.25 compared with the year-ago quarter’s $3.10.
Revenues decreased 12.1% year over year to $2.93 billion in the March-end quarter. The top line missed the Zacks Consensus Estimate of $2.99 billion. Excluding the favorable currency-translation impacts of 1%, net sales fell 13.1% year over year.
AGCO Corporation Price, Consensus and EPS Surprise
AGCO Corporation price-consensus-eps-surprise-chart | AGCO Corporation Quote
Operational Update
Cost of sales decreased 12.9% year over year to $2.16 billion in the first quarter. Gross profit decreased 10% year over year to $770 million in the reported quarter. The gross margin was 26.3% compared with the prior-year quarter’s 25.6%.
Selling, general and administrative expenses were $350 million compared with the year-ago quarter’s $332 million. Adjusted income from operations fell 27.8% year over year to $281 million. The operating margin was 9.6% compared with the year-earlier quarter’s 11.7%
Segmental Performance
Sales in the North America segment moved down 21% year over year to $730 million in the first quarter. The reported figure missed our estimate of $826 million. The segment reported an operating income of $42.4 million compared with the prior-year quarter’s $102.1 million. Our projection for the segment’s operating income was $74.1 million.
Sales in the South America segment decreased 39.8% year over year to $303 million. We expected the segment’s net sales to be $432 million. The segment reported an operating profit of $16.2 million compared with the prior-year quarter’s $99.5 million. Our estimate for the segment's operating income was $57.2 million. The downside was driven by lower commodity prices and farm income.
The EME (Europe/Middle East) segment’s sales were $1.73 billion compared with $1.70 billion in the year-ago period. The reported figure missed our estimate of $1.55 billion. EME’s operating income was $283 million compared with the year-ago quarter’s $239 million. We predicted EME’s operating income to be $211.3 million.
Sales in the Asia/Pacific segment were down 17.7% year over year to $168 million. We expected the segment’s sales to be $188 million. The segment registered an operating profit of $8 million, down 55.8% year over year. Our projection for the segment’s operating profit was $17.4 million.
Financial Update
AGCO Corp reported cash and cash equivalents of $2.46 million as of Mar 31, 2024, up from $596 million as of Dec 31, 2023. Net cash used in operating activities totaled $370 million in the quarter compared with $557 million in the year-ago quarter.
Guidance
AGCO Corp expects net sales of $13.5 billion for 2024. The company anticipates lower sales volumes to impact the 2024 results. This will be partially offset by modest positive pricing and favorable foreign currency translation. Considering these, management lowered its EPS projection to around $12 from the previously stated $13.15 for 2024.
Price Performance
The company’s shares have lost 7.2% in the past year against the the industry’s growth of 1.7%.
Image Source: Zacks Investment Research
Zacks Rank
AGCO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Farm Equipment Stocks
CNH Industrial N.V. came out with first-quarter 2024 earnings of 33 cents per share, beating the Zacks Consensus Estimate of 26 cents. This compares to earnings of 35 cents a year ago.
The company posted revenues of $4.82 billion for the quarter ended March 2024, surpassing the Zacks Consensus Estimate of $4.64 billion. The top line decreased 9.8% year over year.
Alamo Group Inc. (ALG - Free Report) reported first-quarter 2024 adjusted earnings per share of $2.67, which beat the Zacks Consensus Estimate of $2.66. The bottom line increased 4% year over year.
Revenues in the reported quarter increased 3.4% year over year to $426 million.
Farm Equipment Stock Awaiting Q1 Results
Deere & Company (DE - Free Report) is expected to release its second-quarter fiscal 2024 results soon.
The Zacks Consensus Estimate for the company’s earnings per share is pegged at $7.83 for the fiscal second quarter, suggesting a decline of 18.8% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $13.3 billion, indicating a year-over-year decrease of 17.7%.