We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AGCO Corp (AGCO) Earnings and Revenues Miss Estimates in Q4
Read MoreHide Full Article
AGCO Corp. (AGCO - Free Report) delivered an adjusted EPS of $3.78 in fourth-quarter 2023 compared with the prior-year quarter’s $4.47 per share. The reported figure missed the Zacks Consensus Estimate of $4.03.
Including one-time items, AGCO posted an EPS of $4.53 compared with the year-ago quarter’s $4.29.
Revenues decreased 2.5% year over year to $3.8 billion in the December-end quarter. The top line missed the Zacks Consensus Estimate of $4.06 billion. Excluding the favorable currency-translation impacts of 1.8%, net sales fell 4.3% year over year.
We predicted net sales to increase 4.9% year over year in the quarter, excluding the impacts of currency translation. Our model predicted a 3.9% favorable impact of currency translation.
AGCO Corporation Price, Consensus and EPS Surprise
Cost of sales decreased 4.7% year over year to $2.82 billion in the fourth quarter. Gross profit increased 4.5% year over year to $983 million in the reported quarter. The gross margin was 25.9% compared with the prior-year quarter’s 24.1%.
Selling, general and administrative expenses were $417 million compared with the year-ago quarter’s $326 million. Adjusted income from operations fell 13.3% year over year to $405 million. The operating margin was 10.7% compared with the year-earlier quarter’s 12%.
Segmental Performance
Sales in the North America segment moved up 8.3% year over year to $892 million in the fourth quarter. The reported figure topped our estimate of $847 million. The segment reported an operating income of $80.5 million compared with the prior-year quarter’s $61 million. Our projection for the segment’s operating income was $94 million.
Sales in the South America segment decreased 38.9% year over year to $412 million. We expected the segment’s net sales to be $744 million. The segment reported an operating profit of $16 million compared with the prior-year quarter’s $135 million. Our estimate for the segment's operating income was $121 million. The downside was driven by lower commodity prices and farm income.
The EME (Europe/Middle East) segment’s sales were $2.26 billion compared with the $2.19-billion reported in the year-ago period. The reported figure missed our estimate of $2.3 billion. The EME’s operating income was $367 million compared with the year-ago quarter’s $319 million. We predicted EME’s operating income to be $261 million.
Sales in the Asia/Pacific segment were up 11.3% year over year to $238 million. We expected the segment’s sales to be $196 million. The segment registered an operating profit of $19 million, flat year over year. Our projection for the segment’s operating profit was $18.5 million.
Financial Update
AGCO Corp reported cash and cash equivalents of $596 million at the end of 2023, down from $790 million at 2022-end. Net cash provided by operating activities totaled $1.1 billion in 2023 compared with $0.84 billion in 2022.
2023 Performance
The company delivered an adjusted EPS of $15.55 compared with $12.42 in 2022. The reported figure missed the Zacks Consensus Estimate of $15.79.
Including one-time items, AGCO posted an EPS of $15.63 compared with the year-ago quarter’s $11.87.
Revenues increased 13.9% year over year to a record $14.41 billion in 2023. The top line missed the Zacks Consensus Estimate of $14.67 billion. Excluding the favorable currency-translation impacts of 0.1%, net sales rose 13.8% year over year.
Guidance
AGCO Corp expects net sales of $13.6 billion for 2024. The company anticipates lower sales volumes to impact the 2024 results. This will be partially offset by modest positive pricing and favorable foreign currency translation. Considering these, management projects an EPS of $13.15 for 2024.
Price Performance
The company’s shares have lost 4.4% in the past year compared with the industry’s decline of 9.6%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
AGCO Corp currently carries a Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.11 per share. The consensus estimate for 2024 earnings has moved 1% north in the past 60 days and suggests year-over-year growth of 16.7%. The company has a trailing four-quarter average earnings surprise of 33%. CDRE shares have gained 49.2% in the past year.
The Zacks Consensus Estimate for AZZ’s fiscal 2024 earnings per share is pegged at $4.19. The consensus estimate for 2024 earnings has moved north by 2% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 37.6%. AZZ shares have rallied 51.8% in the past year.
Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 26.1% in a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AGCO Corp (AGCO) Earnings and Revenues Miss Estimates in Q4
AGCO Corp. (AGCO - Free Report) delivered an adjusted EPS of $3.78 in fourth-quarter 2023 compared with the prior-year quarter’s $4.47 per share. The reported figure missed the Zacks Consensus Estimate of $4.03.
Including one-time items, AGCO posted an EPS of $4.53 compared with the year-ago quarter’s $4.29.
Revenues decreased 2.5% year over year to $3.8 billion in the December-end quarter. The top line missed the Zacks Consensus Estimate of $4.06 billion. Excluding the favorable currency-translation impacts of 1.8%, net sales fell 4.3% year over year.
We predicted net sales to increase 4.9% year over year in the quarter, excluding the impacts of currency translation. Our model predicted a 3.9% favorable impact of currency translation.
AGCO Corporation Price, Consensus and EPS Surprise
AGCO Corporation price-consensus-eps-surprise-chart | AGCO Corporation Quote
Operational Update
Cost of sales decreased 4.7% year over year to $2.82 billion in the fourth quarter. Gross profit increased 4.5% year over year to $983 million in the reported quarter. The gross margin was 25.9% compared with the prior-year quarter’s 24.1%.
Selling, general and administrative expenses were $417 million compared with the year-ago quarter’s $326 million. Adjusted income from operations fell 13.3% year over year to $405 million. The operating margin was 10.7% compared with the year-earlier quarter’s 12%.
Segmental Performance
Sales in the North America segment moved up 8.3% year over year to $892 million in the fourth quarter. The reported figure topped our estimate of $847 million. The segment reported an operating income of $80.5 million compared with the prior-year quarter’s $61 million. Our projection for the segment’s operating income was $94 million.
Sales in the South America segment decreased 38.9% year over year to $412 million. We expected the segment’s net sales to be $744 million. The segment reported an operating profit of $16 million compared with the prior-year quarter’s $135 million. Our estimate for the segment's operating income was $121 million. The downside was driven by lower commodity prices and farm income.
The EME (Europe/Middle East) segment’s sales were $2.26 billion compared with the $2.19-billion reported in the year-ago period. The reported figure missed our estimate of $2.3 billion. The EME’s operating income was $367 million compared with the year-ago quarter’s $319 million. We predicted EME’s operating income to be $261 million.
Sales in the Asia/Pacific segment were up 11.3% year over year to $238 million. We expected the segment’s sales to be $196 million. The segment registered an operating profit of $19 million, flat year over year. Our projection for the segment’s operating profit was $18.5 million.
Financial Update
AGCO Corp reported cash and cash equivalents of $596 million at the end of 2023, down from $790 million at 2022-end. Net cash provided by operating activities totaled $1.1 billion in 2023 compared with $0.84 billion in 2022.
2023 Performance
The company delivered an adjusted EPS of $15.55 compared with $12.42 in 2022. The reported figure missed the Zacks Consensus Estimate of $15.79.
Including one-time items, AGCO posted an EPS of $15.63 compared with the year-ago quarter’s $11.87.
Revenues increased 13.9% year over year to a record $14.41 billion in 2023. The top line missed the Zacks Consensus Estimate of $14.67 billion. Excluding the favorable currency-translation impacts of 0.1%, net sales rose 13.8% year over year.
Guidance
AGCO Corp expects net sales of $13.6 billion for 2024. The company anticipates lower sales volumes to impact the 2024 results. This will be partially offset by modest positive pricing and favorable foreign currency translation. Considering these, management projects an EPS of $13.15 for 2024.
Price Performance
The company’s shares have lost 4.4% in the past year compared with the industry’s decline of 9.6%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
AGCO Corp currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the Industrial Products sector are Cadre Holdings, Inc. (CDRE - Free Report) , AZZ Inc. (AZZ - Free Report) , and Applied Industrial Technologies (AIT - Free Report) . CDRE currently sports a Zacks Rank #1 (Strong Buy), and AZZ and AIT carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Cadre Holdings’ 2024 earnings is pegged at $1.11 per share. The consensus estimate for 2024 earnings has moved 1% north in the past 60 days and suggests year-over-year growth of 16.7%. The company has a trailing four-quarter average earnings surprise of 33%. CDRE shares have gained 49.2% in the past year.
The Zacks Consensus Estimate for AZZ’s fiscal 2024 earnings per share is pegged at $4.19. The consensus estimate for 2024 earnings has moved north by 2% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 37.6%. AZZ shares have rallied 51.8% in the past year.
Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 26.1% in a year.