AGCO Corporation (AGCO - Free Report) reported second-quarter adjusted earnings per share of $1.82 per share, up 37.8% year over year. The reported figure also surpassed the Zacks Consensus Estimate of $1.59, delivering a positive earnings surprise of 14.4%.
Revenues declined 4.5% year over year to $2,422.6 million. The revenue figure also missed the Zacks Consensus Estimate of $2,554 million. Excluding unfavorable currency-translation impact of around 4.6%, net sales inched up 0.1% year over year.
The company witnessed strong margin expansion across all regions and significant earnings per share growth during the April-June quarter. Further, price-realization initiatives to counter raw-material inflation and rising productivity drove the company’s profitability significantly during the reported quarter.
Cost of sales went down 6.2% to $1,858.7 million from the year-earlier quarter. Gross profit increased 1.4% to $564 million in the quarter from the $556 million recorded in the year-ago quarter. Gross margin came in at 23.2% during the second quarter, up from the prior-year quarter’s 22.0%.
Selling, general and administrative expenses slipped 4% year over year to $260.7 million. Adjusted income from operations grew 16.8% year over year to $199.6 million. Consequently, operating margin improved 8.2% year over year from the year-ago quarter’s 6.7%.
AGCO Corporation Price, Consensus and EPS Surprise