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AGCO Corp's (AGCO) Subsidiary AgRev to Expand in Harrisburg

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AGCO Corporation (AGCO - Free Report) announced that its wholly-owned subsidiary, AgRevolution, is planning to acquire a M&S Implement location in Harrisburg. The acquisition would be subject to the completion of due diligence.

With this acquisition, AgRevolution intends to provide greater services in southern Illinois. Southern Illinois farmers will now have access to AGCO’s full brand portfolio, which includes the company’s precision ag solutions from Fendt.

AgRevolution is an agricultural equipment dealership serving the farming community in Kentucky, southern Indiana and southern Illinois with industry-leading products and support services.

AGCO has been gaining from its recent investments. In 2022, AGCO announced an ambitious growth plan in North America to reform and extend its North America dealership network to meet growing farmer demand. Moreover, the company aimed to offer improved customer experiences with its brands and services.

AgRevolution's plan to acquire M&S Implement location is in sync with AGCO’s plan to meet those goals and provide Illinois farmers with access to its well-known goods and services.

AGCO delivered an adjusted earnings per share of $4.29 in second-quarter 2023 compared with the prior-year quarter’s $2.38. The reported figure beat the Zacks Consensus Estimate of $3.72. Revenues increased 29.8% year over year to a record $3,823 million in the June-end quarter.

Price Performance

AGCO Corp’s shares have gained 14% in the past year compared with the industry’s growth of 9.2%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Stocks to Consider

AGCO Corp currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Industrial Products sector are Caterpillar Inc. (CAT - Free Report) , Astec Industries, Inc. (ASTE - Free Report) and Eaton Corporation plc. (ETN - Free Report) . CAT and ASTE sport a Zacks Rank #1 (Strong Buy), and ETN has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Caterpillar has an average trailing four-quarter earnings surprise of 18.5%. The Zacks Consensus Estimate for CAT’s 2023 earnings is pegged at $19.81 per share. The consensus estimate for 2023 earnings has moved north by 11.4% in the past 60 days. Its shares gained 51.6% in the last year.

Astec has an average trailing four-quarter earnings surprise of 20%. The Zacks Consensus Estimate for ASTE’s 2023 earnings is pegged at $2.81 per share. The consensus estimate for 2023 earnings has moved 4% north in the past 60 days. ASTE’s shares gained 22.8% in the last year.

The Zacks Consensus Estimate for Eaton’s 2023 earnings per share is pegged at $8.80. The consensus estimate for 2023 earnings has moved 4% north in the past 60 days. It has a trailing four-quarter average earnings surprise of 3%. Shares of ETN rallied 68.8% in the last year.

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