Wrapping up Q4 earnings, we look at the numbers and key takeaways for the agricultural machinery stocks, including 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 Q4. As a group, revenues missed analysts’ consensus estimates by 6.7% while next quarter’s revenue guidance was 1.9% above.
In light of this news, share prices of the companies have held steady as they are up 2.3% on average since the latest earnings results.
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 $2.89 billion, down 24% year on year. This print fell short of analysts’ expectations by 8.5%. Overall, it was a slower quarter for the company with a significant miss of analysts’ EPS and organic revenue estimates.
«AGCO delivered strong fourth quarter results with an adjusted operating margin of 9.9%, even with challenging market dynamics and aggressive production cuts,» said Eric Hansotia, AGCO’s Chairman, President and Chief Executive Officer.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $102.62.
Read our full report on AGCO here, it’s free.
A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE:LNN) provides a variety of proprietary water management and road infrastructure products and services.
Lindsay reported revenues of $166.3 million, up 3.1% year on year, in line with analysts’ expectations. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates.
Lindsay pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 11.5% since reporting. It currently trades at $130.91.
Is now the time to buy Lindsay? Access our full analysis of the earnings results here, it’s free.
Story Continues
