Agricultural and farm machinery company AGCO (NYSE:AGCO) will be reporting earnings tomorrow before the bell. Here’s what to look for.
AGCO Corporation missed analysts’ revenue expectations by 10.2% last quarter, reporting revenues of $2.60 billion, down 24.8% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly.
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 17% year on year to $3.15 billion, a further deceleration from the 2.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.83 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 Corporation has missed Wall Street’s revenue estimates five times over the last two years.
Looking at AGCO Corporation’s peers in the heavy machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Lindsay delivered year-on-year revenue growth of 3.1%, meeting analysts’ expectations, and Cummins reported a revenue decline of 1.1%, topping estimates by 4.7%. Lindsay traded up 4.9% following the results.
Read our full analysis of Lindsay’s results here and Cummins’s results here.
Investors in the heavy machinery segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. AGCO Corporation is up 10.3% during the same time and is heading into earnings with an average analyst price target of $105.85 (compared to the current share price of $101.03).
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