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AGCO Corp (AGCO) to Post Q1 Earnings: What's in the Offing?

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AGCO Corporation (AGCO - Free Report) is scheduled to report first-quarter 2021 results on Apr 29, before the opening bell.

Which Way are the Estimates Trending?

The Zacks Consensus Estimate for AGCO’s first-quarter earnings per share is pegged at $1.11, suggesting year-over-year growth of 29%. The Zacks Consensus Estimate for total revenues is pegged at $2.21 billion for the period, indicating a year-over-year jump of 14.8%. The company has a trailing four-quarter average earnings surprise of 454.97%.

Let’s see how things have shaped up prior to this announcement.

AGCO Corporation Price and EPS Surprise

AGCO Corporation Price and EPS Surprise

AGCO Corporation price-eps-surprise | AGCO Corporation Quote

Earnings Whispers

Our proven model conclusively predicts an earnings beat for AGCO this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for AGCO is +2.94%.

Zacks Rank: AGCO currently carries a Zacks Rank of 3.

Key Factors to Consider

Replacement demand for old equipment, increased spending on agricultural equipment due to pick-up in farm income, improved agricultural commodity prices as well as AGCO’s continued investments in products with premium technologies and smart farming solutions will likely reflect on the first quarter’s revenue numbers. Further, its cost-control actions are likely to have supported the company’s margin during the to-be-reported quarter. However, uncertainties regarding the COVID-19 pandemic might have affected AGCO’s quarterly performance.

Improved retail industry demand across North America and South America are likely to have aided AGCO’s performance during the March-end quarter. The Zacks Consensus Estimate for the North America segment’s quarterly net sales for the quarter under review is currently pegged at $590 million, calling for year-on-year growth of 6.8%. The segment’s operating income is projected at $60 million, down from the prior-year quarter’s $61 million.

The Zacks Consensus Estimate for the South America segment’s sales is pegged at $216 million for the January-March period, suggesting an increase of 40.2% from the year-earlier quarter. The segment is estimated to report an operating profit of $0.78 million in the first quarter as against the prior-year quarter’s operating loss of $8.80 million. Solid crop production and favorable exchange rates in Brazil and Argentina have been supporting positive economics in South America.

The Zacks Consensus Estimate for net sales of the EME segment is pinned at $1,295 million compared with the $1,113 million reported in the year-ago quarter. The segment’s operating profit is pinned at $133 million, suggesting a year-over-year increase of 30.4%.

The Zacks Consensus Estimate for the Asia/Pacific segment’s sales is pinned at $131 million compared with the prior-year quarter’s $109 million. The Zacks Consensus Estimate for the segment’s operating profit is currently pegged at $3.4 million, as against the year-ago quarter’s operating loss of $1.30 million.

Price Performance

AGCO’s shares have gained 97% over the past six months, outperforming the industry’s growth of 62.9%.



Stocks Worth a Look

Here are some Industrial Products stocks worth considering as these too have the right combination of elements to post an earnings beat in their upcoming releases:

Caterpillar Inc. (CAT - Free Report) carries an Earnings ESP of +3.15% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Zebra Technologies Corporation (ZBRA - Free Report) , currently a Zacks #2 Ranked stock, has an Earnings ESP of +1.63%.

O I Glass, Inc. (OI - Free Report) carries a Zacks Rank #3 and an Earnings ESP of +2.11%, at present.

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