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The Zacks Consensus Estimate for AGCO’s first-quarter earnings per share is pegged at $2.66, suggesting year-over-year growth of 11.3%. The consensus mark for total revenues is pegged at $3.15 billion, indicating a year-over-year improvement of 17.2%.
Q4 Results
In the last reported quarter, AGCO’s earnings and revenues increased year over year. Both top and bottom-line figures beat the respective Zacks Consensus Estimate. The company delivered a trailing four-quarters average earnings surprise of 13.4%.
Increased spending on agricultural equipment due to a pick-up in farm income owing to improved agricultural commodity prices as well as investments in products with premium technologies and smart farming solutions are likely to have reflected in first-quarter revenue numbers. Demand for its Precision Planting solutions, technology-rich Fendt full lineup of equipment and replacement parts are also likely to have benefited its top-line performance in the quarter.
AGCO’s cost-control actions are also likely to have supported the company’s margin during the to-be-reported quarter. However, supply chain-related challenges and higher engineering expenses might have affected AGCO’s quarterly performance.
Increased sales of tractors and precision planting equipment, along with the effects of pricing are likely to mitigate inflationary cost pressure in North America. The Zacks Consensus Estimate for the North America segment’s quarterly net sales is currently pegged at $828 million, implying year-over-year growth of 18.1%. The segment’s operating income is projected to be $72 million. It had reported $55 million in the prior-year quarter.
South American sales are likely to grow strongly across all markets, owing to robust industry demand and favorable pricing impacts. The Zacks Consensus Estimate for the South America segment’s sales is pegged at $497 million for the first quarter, suggesting an increase of 39.6% from the year-earlier quarter. The segment is estimated to report an operating profit of $77 million in the first quarter. It had reported an operating profit of $46.10 million in the prior-year quarter.
The Zacks Consensus Estimate for net sales of the EME segment stands at $1,561 million, suggesting growth from $1,403 million reported in the year-ago quarter. The segment’s operating profit is expected to be $187 million, suggesting year-over-year growth of 15.4%.
The consensus mark for the Asia/Pacific segment’s sales is pegged at $215 million, implying a fall from the $225 million reported in the prior-year quarter. The consensus mark for the segment’s operating profit is currently pegged at $25.84 million. It had reported $34 million in the year-ago quarter.
Earnings Whispers
Our model predicts an earnings beat for AGCO this quarter. 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. This is precisely the case here.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for AGCO is +6.35%.
AGCO’s shares have lost 3.1% over the past year compared with the industry’s 1% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider
Here are some Industrial Products stocks, which according to our model, also have the right combination of elements to beat on earnings in their upcoming releases.
Ingersoll Rand Inc. (IR - Free Report) is scheduled to report first-quarter 2023 results on May 3. It has an Earnings ESP of +2.32% and currently sports a Zacks Rank #1. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 52 cents per share. This suggests year-over-year growth of 6.1%.
The consensus mark for IR’s quarterly revenues is pegged at $1.5 billion, indicating year-over-year growth of 10.7%. IR has a trailing four-quarter earnings surprise of 8.5%, on average.
A. O. Smith Corporation (AOS - Free Report) is set to release its first-quarter 2023 results on Apr 27. AOS currently has an Earnings ESP of +5.78% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 77 cents per share, suggesting no year-over-year change.
The consensus mark for AOS’ quarterly revenues is pegged at $913 million, indicating a year-over-year decline of 6.5%. The company has a trailing four-quarter earnings surprise of 3.2%, on average.
Illinois Tool Works (ITW - Free Report) is scheduled to report first-quarter 2023 results on May 2. The company currently has an Earnings ESP of +1.49% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at $2.19 per share. This suggests year-over-year growth of 3.8%
The consensus mark for quarterly revenues is pegged at $4 billion, indicating growth of 0.6% from the prior-year quarter’s reported level. ITW has a trailing four-quarter earnings surprise of 0.9%, on average.
Image: Bigstock
AGCO Gears Up to Report Q1 Earnings: What's in the Cards?
AGCO Corporation (AGCO - Free Report) is scheduled to report first-quarter 2023 results on May 2, before the opening bell.
Trend in Estimates
The Zacks Consensus Estimate for AGCO’s first-quarter earnings per share is pegged at $2.66, suggesting year-over-year growth of 11.3%. The consensus mark for total revenues is pegged at $3.15 billion, indicating a year-over-year improvement of 17.2%.
Q4 Results
In the last reported quarter, AGCO’s earnings and revenues increased year over year. Both top and bottom-line figures beat the respective Zacks Consensus Estimate. The company delivered a trailing four-quarters average earnings surprise of 13.4%.
AGCO Corporation Price and EPS Surprise
AGCO Corporation price-eps-surprise | AGCO Corporation Quote
Key Factors
Increased spending on agricultural equipment due to a pick-up in farm income owing to improved agricultural commodity prices as well as investments in products with premium technologies and smart farming solutions are likely to have reflected in first-quarter revenue numbers. Demand for its Precision Planting solutions, technology-rich Fendt full lineup of equipment and replacement parts are also likely to have benefited its top-line performance in the quarter.
AGCO’s cost-control actions are also likely to have supported the company’s margin during the to-be-reported quarter. However, supply chain-related challenges and higher engineering expenses might have affected AGCO’s quarterly performance.
Increased sales of tractors and precision planting equipment, along with the effects of pricing are likely to mitigate inflationary cost pressure in North America. The Zacks Consensus Estimate for the North America segment’s quarterly net sales is currently pegged at $828 million, implying year-over-year growth of 18.1%. The segment’s operating income is projected to be $72 million. It had reported $55 million in the prior-year quarter.
South American sales are likely to grow strongly across all markets, owing to robust industry demand and favorable pricing impacts. The Zacks Consensus Estimate for the South America segment’s sales is pegged at $497 million for the first quarter, suggesting an increase of 39.6% from the year-earlier quarter. The segment is estimated to report an operating profit of $77 million in the first quarter. It had reported an operating profit of $46.10 million in the prior-year quarter.
The Zacks Consensus Estimate for net sales of the EME segment stands at $1,561 million, suggesting growth from $1,403 million reported in the year-ago quarter. The segment’s operating profit is expected to be $187 million, suggesting year-over-year growth of 15.4%.
The consensus mark for the Asia/Pacific segment’s sales is pegged at $215 million, implying a fall from the $225 million reported in the prior-year quarter. The consensus mark for the segment’s operating profit is currently pegged at $25.84 million. It had reported $34 million in the year-ago quarter.
Earnings Whispers
Our model predicts an earnings beat for AGCO this quarter. 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. This is precisely the case here.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for AGCO is +6.35%.
Zacks Rank: AGCO currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
AGCO’s shares have lost 3.1% over the past year compared with the industry’s 1% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider
Here are some Industrial Products stocks, which according to our model, also have the right combination of elements to beat on earnings in their upcoming releases.
Ingersoll Rand Inc. (IR - Free Report) is scheduled to report first-quarter 2023 results on May 3. It has an Earnings ESP of +2.32% and currently sports a Zacks Rank #1. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 52 cents per share. This suggests year-over-year growth of 6.1%.
The consensus mark for IR’s quarterly revenues is pegged at $1.5 billion, indicating year-over-year growth of 10.7%. IR has a trailing four-quarter earnings surprise of 8.5%, on average.
A. O. Smith Corporation (AOS - Free Report) is set to release its first-quarter 2023 results on Apr 27. AOS currently has an Earnings ESP of +5.78% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 77 cents per share, suggesting no year-over-year change.
The consensus mark for AOS’ quarterly revenues is pegged at $913 million, indicating a year-over-year decline of 6.5%. The company has a trailing four-quarter earnings surprise of 3.2%, on average.
Illinois Tool Works (ITW - Free Report) is scheduled to report first-quarter 2023 results on May 2. The company currently has an Earnings ESP of +1.49% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at $2.19 per share. This suggests year-over-year growth of 3.8%
The consensus mark for quarterly revenues is pegged at $4 billion, indicating growth of 0.6% from the prior-year quarter’s reported level. ITW has a trailing four-quarter earnings surprise of 0.9%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.