Agricultural and farm machinery company AGCO (NYSE:AGCO) will be reporting earnings tomorrow before the bell. Here’s what to expect.
AGCO missed analysts’ revenue expectations by 8.5% last quarter, reporting revenues of $2.89 billion, down 24% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS and organic revenue estimates.
Is AGCO a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting AGCO’s revenue to decline 31.2% year on year to $2.01 billion, a further deceleration from the 12.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 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 has missed Wall Street’s revenue estimates six times over the last two years.
Looking at AGCO’s peers in the heavy machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Lindsay delivered year-on-year revenue growth of 23.5%, beating analysts’ expectations by 4%, and Shyft reported revenues up 3.4%, topping estimates by 2.8%. Lindsay traded down 8% following the results while Shyft was up 18.1%.
Read our full analysis of Lindsay’s results here and Shyft’s results here.
Investors in the heavy machinery segment have had fairly steady hands going into earnings, with share prices down 1.6% on average over the last month. AGCO is down 4.8% during the same time and is heading into earnings with an average analyst price target of $98.11 (compared to the current share price of $88.40).
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