Agricultural Machinery Stocks Q3 Teardown: AGCO (NYSE:AGCO) Vs The Rest

By Kayode Omotosho

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at AGCO (NYSE:AGCO) 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 mixed Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

AGCO (NYSE:AGCO)

With a history that features both organic growth and acquisitions, AGCO (NYSE:AGCO) designs, manufactures, and sells agricultural machinery and related technology.

AGCO reported revenues of $2.48 billion, down 4.7% year on year. This print fell short of analysts’ expectations by 0.5%. Overall, it was a mixed quarter for the company with full-year EPS guidance exceeding analysts’ expectations but a significant miss of analysts’ organic revenue estimates.

"AGCO delivered another solid quarter of navigating a complex global landscape shaped by challenging farm economics, high interest rates, and cautious capital investment," said Eric Hansotia, AGCO's Chairman, President and CEO.