Agricultural and farm machinery company AGCO (NYSE:AGCO) will be reporting earnings this Thursday before market hours. Here’s what investors should know.
AGCO beat analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $2.05 billion, down 30% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA 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 23.4% year on year to $2.49 billion, a further deceleration from the 15.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.08 per share.
The majority of analysts covering the company have 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 Q2 results, giving us a hint as to what we can expect. Lindsay delivered year-on-year revenue growth of 21.7%, beating analysts’ expectations by 4.6%, and Greenbrier reported revenues up 2.7%, topping estimates by 7.3%. Lindsay traded up 3.9% following the results while Greenbrier was also up 21.1%.
Read our full analysis of Lindsay’s results here and Greenbrier’s results here.
There has been positive sentiment among investors in the heavy machinery segment, with share prices up 5.5% on average over the last month. AGCO is up 4.4% during the same time and is heading into earnings with an average analyst price target of $111.19 (compared to the current share price of $107.67).
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