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AGCO Corporation (AGCO - Free Report) delivered an adjusted earnings per share of $2.53 in second-quarter 2024 compared with the prior-year quarter’s $4.29. The reported figure missed the Zacks Consensus Estimate of $2.88.
Including one-time items, AGCO posted a loss of $4.92 per share against the year-ago quarter’s earnings per share of $4.26. Revenues decreased 15.1% year over year to $3.25 billion in the June-end quarter. The top line missed the Zacks Consensus Estimate of $3.49 billion. Excluding the unfavorable currency-translation impacts of 0.9%, net sales fell 14.2% year over year.
AGCO Corporation Price, Consensus and EPS Surprise
Cost of sales decreased 14.5% year over year to $2.41 billion in the second quarter. The gross profit decreased 16.7% year over year to $837.5 million in the reported quarter. The gross margin was 25.8% compared with the prior-year quarter’s 26.3%.
Selling, general and administrative expenses were $380 million compared with the year-ago quarter’s $350 million. The adjusted income from operations fell 33.6% year over year to $333 million. The operating margin was 10.3% compared with the year-earlier quarter’s 13.1%.
Segmental Performance
Sales in the North America segment moved down 16% year over year to $838 million in the second quarter. The reported figure missed our estimate of $916 million. The segment reported an operating income of $77 million compared with the prior-year quarter’s $137 million. Our projection for the segment’s operating income was $111 million. The downside was driven by industry sales, lower end-market demand and low sales of high-horsepower tractors.
Sales in the South America segment decreased 41.7% year over year to $349 million. We expected the segment’s net sales to be $456 million. The variance was caused primarily due to lower sales in Argentina. The segment reported an operating profit of $13 million compared with the prior-year quarter’s $121 million. Our estimate for the segment's operating income was $66 million. The decline was driven by lower sales of tractors and softer industry sales.
The EME (Europe/Middle East) segment’s sales were $1.90 billion compared with the $1.99 billion reported in the year-ago period. The reported figure missed our estimate of $2.01 billion, driven by lower sales across most European markets. The EME’s operating income was $288.5 million compared with the year-ago quarter’s $295 million. We predicted EME’s operating income to be $293 million.
Sales in the Asia/Pacific segment were down 33.6% year over year to $157 million. We expected the segment’s sales to be $203 million. The segment registered an operating profit of $12 million compared with the year-ago quarter’s $21 million. Our projection for the segment’s operating profit was $12 million.
Financial Update
AGCO Corp reported cash and cash equivalents of $657 million at the end of the second quarter of 2024, up from $596 million at the 2023 end. Net cash used in operating activities totaled $135 in the first six months of 2024 compared with an outflow of $365 million in the prior-year comparable period.
Guidance
AGCO Corp expects 2024 net sales of $12.5 billion, including the positive impacts of the PTx Trimble acquisition completed in April 2024. This marks a decline from the $13.5 billion stated earlier due to lower sales volumes. Management lowered its adjusted EPS projection to around $8.00 from the previously stated $12.00 for 2024.
Price Performance
AGCO Corp’s shares have lost 25.4% in the past year compared with the industry’s decline of 13.9%.
Lindsay Corporation (LNN - Free Report) delivered adjusted earnings per share of $1.41 in third-quarter fiscal 2024 (ended on May 31, 2024), beating the Zacks Consensus Estimate of $1.25. The bottom line fell 8% year over year.
LNN generated revenues of $139 million, down 15.4% from the $165 million reported in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $152 million.
CNH Industrial N.V. (CNH - Free Report) came out with second-quarter 2024 earnings of 38 cents per share, in line with the Zacks Consensus Estimate. This compares to earnings of 52 cents a year ago.
The company posted revenues of $5.49 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate of $5.64 billion. The top line decreased 16.4% year over year.
Farm Equipment Stock Awaiting Results
Deere & Company (DE - Free Report) is expected to release its third-quarter fiscal 2024 results soon.
The Zacks Consensus Estimate for the company’s earnings per share is pegged at $5.85 for the fiscal third quarter, suggesting a decline of 42.7% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $10.89 billion, indicating a year-over-year decrease of 23.7%.
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AGCO Corp (AGCO) Misses Q2 Earnings Estimates, Lowers '24 View
AGCO Corporation (AGCO - Free Report) delivered an adjusted earnings per share of $2.53 in second-quarter 2024 compared with the prior-year quarter’s $4.29. The reported figure missed the Zacks Consensus Estimate of $2.88.
Including one-time items, AGCO posted a loss of $4.92 per share against the year-ago quarter’s earnings per share of $4.26.
Revenues decreased 15.1% year over year to $3.25 billion in the June-end quarter. The top line missed the Zacks Consensus Estimate of $3.49 billion. Excluding the unfavorable currency-translation impacts of 0.9%, net sales fell 14.2% 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 14.5% year over year to $2.41 billion in the second quarter. The gross profit decreased 16.7% year over year to $837.5 million in the reported quarter. The gross margin was 25.8% compared with the prior-year quarter’s 26.3%.
Selling, general and administrative expenses were $380 million compared with the year-ago quarter’s $350 million. The adjusted income from operations fell 33.6% year over year to $333 million. The operating margin was 10.3% compared with the year-earlier quarter’s 13.1%.
Segmental Performance
Sales in the North America segment moved down 16% year over year to $838 million in the second quarter. The reported figure missed our estimate of $916 million. The segment reported an operating income of $77 million compared with the prior-year quarter’s $137 million. Our projection for the segment’s operating income was $111 million. The downside was driven by industry sales, lower end-market demand and low sales of high-horsepower tractors.
Sales in the South America segment decreased 41.7% year over year to $349 million. We expected the segment’s net sales to be $456 million. The variance was caused primarily due to lower sales in Argentina. The segment reported an operating profit of $13 million compared with the prior-year quarter’s $121 million. Our estimate for the segment's operating income was $66 million. The decline was driven by lower sales of tractors and softer industry sales.
The EME (Europe/Middle East) segment’s sales were $1.90 billion compared with the $1.99 billion reported in the year-ago period. The reported figure missed our estimate of $2.01 billion, driven by lower sales across most European markets. The EME’s operating income was $288.5 million compared with the year-ago quarter’s $295 million. We predicted EME’s operating income to be $293 million.
Sales in the Asia/Pacific segment were down 33.6% year over year to $157 million. We expected the segment’s sales to be $203 million. The segment registered an operating profit of $12 million compared with the year-ago quarter’s $21 million. Our projection for the segment’s operating profit was $12 million.
Financial Update
AGCO Corp reported cash and cash equivalents of $657 million at the end of the second quarter of 2024, up from $596 million at the 2023 end. Net cash used in operating activities totaled $135 in the first six months of 2024 compared with an outflow of $365 million in the prior-year comparable period.
Guidance
AGCO Corp expects 2024 net sales of $12.5 billion, including the positive impacts of the PTx Trimble acquisition completed in April 2024. This marks a decline from the $13.5 billion stated earlier due to lower sales volumes.
Management lowered its adjusted EPS projection to around $8.00 from the previously stated $12.00 for 2024.
Price Performance
AGCO Corp’s shares have lost 25.4% in the past year compared with the industry’s decline of 13.9%.
Image Source: Zacks Investment Research
Zacks Rank
AGCO currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Peer Performances
Lindsay Corporation (LNN - Free Report) delivered adjusted earnings per share of $1.41 in third-quarter fiscal 2024 (ended on May 31, 2024), beating the Zacks Consensus Estimate of $1.25. The bottom line fell 8% year over year.
LNN generated revenues of $139 million, down 15.4% from the $165 million reported in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $152 million.
CNH Industrial N.V. (CNH - Free Report) came out with second-quarter 2024 earnings of 38 cents per share, in line with the Zacks Consensus Estimate. This compares to earnings of 52 cents a year ago.
The company posted revenues of $5.49 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate of $5.64 billion. The top line decreased 16.4% year over year.
Farm Equipment Stock Awaiting Results
Deere & Company (DE - Free Report) is expected to release its third-quarter fiscal 2024 results soon.
The Zacks Consensus Estimate for the company’s earnings per share is pegged at $5.85 for the fiscal third quarter, suggesting a decline of 42.7% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $10.89 billion, indicating a year-over-year decrease of 23.7%.