Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Deere (NYSE:DE) and its peers.
Agricultural machinery companies are investing to develop and produce more precise machinery, automated systems, and connected equipment that collects analyzable data to help farmers and other customers improve yields and increase efficiency. On the other hand, agriculture is seasonal and natural disasters or bad weather can impact the entire industry. Additionally, macroeconomic factors such as commodity prices or changes in interest rates–which dictate the willingness of these companies or their customers to invest–can impact demand for agricultural machinery.
The 6 agricultural machinery stocks we track reported a strong Q1. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 2.1% below.
Thankfully, share prices of the companies have been resilient as they are up 7.6% on average since the latest earnings results.
Deere (NYSE:DE)
Revolutionizing agriculture with the first self-polishing cast-steel plow in the 1800s, Deere (NYSE:DE) manufactures and distributes advanced agricultural, construction, forestry, and turf care equipment.
Deere reported revenues of $11.17 billion, down 17.9% year on year. This print fell short of analysts’ expectations by 9.7%, but it was still a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates.
Deere delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 5.1% since reporting and currently trades at $522.24.
Is now the time to buy Deere? Access our full analysis of the earnings results here, it’s free.
Best Q1: Lindsay (NYSE:LNN)
A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE:LNN) provides a variety of proprietary water management and road infrastructure products and services.
Lindsay reported revenues of $187.1 million, up 23.5% year on year, outperforming analysts’ expectations by 4%. The business had an incredible quarter with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EPS estimates.
Lindsay scored the fastest revenue growth among its peers. The market seems content with the results as the stock is up 3.8% since reporting. It currently trades at $134.89.
Is now the time to buy Lindsay? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: The Toro Company (NYSE:TTC)
Ceasing all production to support the war effort during World War II, Toro (NYSE:TTC) offers outdoor equipment for residential, commercial, and agricultural use.
The Toro Company reported revenues of $1.32 billion, down 2.3% year on year, falling short of analysts’ expectations by 2.3%. It was a softer quarter as it posted a miss of analysts’ Professional revenue estimates and full-year EPS guidance missing analysts’ expectations.
As expected, the stock is down 9.3% since the results and currently trades at $68.51.
Read our full analysis of The Toro Company’s results here.
Titan International (NYSE:TWI)
Acquiring Goodyear’s farm tire business in 2005, Titan (NSYE:TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles.
Titan International reported revenues of $490.7 million, up 1.8% year on year. This number beat analysts’ expectations by 5.7%. Zooming out, it was a satisfactory quarter as it also produced an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates.
Titan International scored the biggest analyst estimates beat among its peers. The stock is up 10.8% since reporting and currently trades at $8.11.
Read our full, actionable report on Titan International here, it’s free.
Alamo (NYSE:ALG)
Expanding its markets through acquisitions since its founding, Alamo (NSYE:ALG) designs, manufactures, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural use.
Alamo reported revenues of $391 million, down 8.1% year on year. This result met analysts’ expectations. It was a very strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.
The stock is up 16% since reporting and currently trades at $207.16.
Read our full, actionable report on Alamo here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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