Winners And Losers Of Q2: AGCO Corporation (NYSE:AGCO) Vs The Rest Of The Agricultural Machinery Stocks
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how AGCO Corporation (NYSE:AGCO) and the rest of the agricultural machinery stocks fared in Q2.
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 5 agricultural machinery stocks we track reported a softer Q2. As a group, revenues missed analysts’ consensus estimates by 4.8% while next quarter’s revenue guidance was 2% below.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and agricultural machinery stocks have had a rough stretch. On average, share prices are down 7.1% since the latest earnings results.
AGCO Corporation (NYSE:AGCO)
With a history that features both organic growth and acquisitions, AGCO (NYSE:AGCO) designs, manufactures, and sells agricultural machinery and related technology.
AGCO Corporation reported revenues of $3.25 billion, down 15.1% year on year. This print fell short of analysts’ expectations by 6.8%. Overall, it was a disappointing quarter for the company with full-year revenue guidance missing analysts’ expectations.
"While we continue to successfully execute our Farmer-first strategy, second quarter results were influenced by weakening market conditions and significant production cuts aimed at reducing our Company and dealer inventories," said Eric Hansotia, AGCO's Chairman, President and Chief Executive Officer.
Unsurprisingly, the stock is down 11.8% since reporting and currently trades at $90.
Read our full report on AGCO Corporation here, it’s free.
Best Q2: Lindsay (NYSE:LNN)
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 $139.2 million, down 15.4% year on year, falling short of analysts’ expectations by 3.6%. The business performed better than its peers, but it was unfortunately a slower quarter with a miss of analysts’ organic revenue estimates.
The market seems content with the results as the stock is up 1.9% since reporting. It currently trades at $115.38.
Is now the time to buy Lindsay? Access our full analysis of the earnings results here, it’s free.
Alamo (NYSE:ALG)
Expanding its markets through acquisitions since its founding, Alamo (NSYE:ALG) designs, manufactures, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural use.
Alamo reported revenues of $416.3 million, down 5.5% year on year, falling short of analysts’ expectations by 2.9%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.
As expected, the stock is down 9.9% since the results and currently trades at $174.11.
Read our full analysis of Alamo’s results here.
Titan International (NYSE:TWI)
Acquiring Goodyear’s farm tire business in 2005, Titan (NSYE:TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles.
Titan International reported revenues of $532.2 million, up 10.6% year on year. This print lagged analysts' expectations by 2.8%. It was a softer quarter as it also recorded a miss of analysts’ earnings estimates and revenue guidance for next quarter missing analysts’ expectations.
Titan International achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 6.1% since reporting and currently trades at $8.
Read our full, actionable report on Titan International here, it’s free.
The Toro Company (NYSE:TTC)
Ceasing all production to support the war effort during World War II, Toro (NYSE:TTC) offers outdoor equipment for residential, commercial, and agricultural use.
The Toro Company reported revenues of $1.16 billion, up 6.9% year on year. This print came in 8.1% below analysts' expectations. Overall, it was a softer quarter as it also recorded a miss of analysts’ earnings estimates.
The Toro Company had the weakest performance against analyst estimates among its peers. The stock is down 9.7% since reporting and currently trades at $82.15.
Read our full, actionable report on The Toro Company here, it’s free.
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