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AGCO Corp (AGCO) to Report Q1 Earnings: Is a Beat in Store?

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·5 min read
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AGCO Corporation AGCO is scheduled to report first-quarter 2022 results on May 3, before the opening bell.

Which Way Are the Estimates Trending?

The Zacks Consensus Estimate for AGCO’s total revenues is pinned at $2.64 billion for the quarter, calling for a year-over-year improvement of 10.9%. The estimate for earnings per share is pegged at $1.88 for the quarter, suggesting a decline of 6% year over year. Earnings estimates for the first quarter have moved down in the past 30 days.

Q4 Results

In the last reported quarter, AGCO Corporation’s earnings and sales beat the Zacks Consensus Estimate and increased year over year. The company has a trailing four-quarter earnings surprise of 56.6%, on average.

Let’s see how things have shaped up prior to this announcement.

AGCO Corporation Price and EPS Surprise

AGCO Corporation Price and EPS Surprise
AGCO Corporation Price and EPS Surprise

AGCO Corporation price-eps-surprise | AGCO Corporation Quote

What Does Our Model Indicate?

Our proven model conclusively predicts an earnings beat for AGCO Corporation this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for AGCO Corporation is +0.93%.

Zacks Rank: AGCO Corporation currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Factors to Consider

Higher agricultural commodity prices and pick-up in farm income have prompted farmers to boost spending on new agricultural equipment and replace the age-old ones. Along with this, improved sales volumes and positive pricing to mitigate the cost inflation are likely to have contributed to AGCO Corporation’s first-quarter top-line results. Robust order booking, driven by strong production and positive market response to the company’s technology-focused products, is likely to have contributed to AGCO’s performance during the quarter. The company’s consistent focus on investments in precision agriculture, digital initiatives, premium technology and smart farming solutions in order to improve distribution, enhance digital capabilities, expand product lines and factory productivity will drive growth.

However, production disruption due to supply chain and logistics challenges as well as material and freight cost inflation, might have affected the company’s quarterly performance.

Segment Estimates

For the North America segment, the Zacks Consensus Estimate for first-quarter 2022 revenues is pegged at $717 million, suggesting an improvement of 17% from the prior-year quarter’s levels. Sales of high horsepower tractors and combines, driven by extended fleet age and favorable commodity prices, are expected to have driven the segment’s sales. The Zacks Consensus Estimate for operating profit in the segment is pegged at $74 million compared with the prior-year quarter’s $75 million.

The Zacks Consensus Estimate for the South America segment’s March-end quarter sales is at $322 million, suggesting year-over-year growth of 34%. Higher commodity prices and favorable exchange rates might have contributed to the segment’s performance. The consensus mark for the segment’s operating profit is pegged at $18.6 million, calling for 15% growth from the prior-year quarter’s levels.

The consensus mark for the EME (Europe/Middle East) segment’s first-quarter sales is pegged at $1,348 million, indicating growth of 1.6% from the year-ago quarter. The segment is expected to report an operating profit of $143 million in the quarter compared with the prior-year quarter’s $144 million.

The Zacks Consensus Estimate for the Asia/Pacific segment sales stands at $215 million for the January-March quarter, indicating year-over-year growth of 7.5%. The Zacks Consensus Estimate for the segment’s operating profit is pegged at $23 million compared with the prior-year quarter’s $21 million.

Price Performance

AGCO Corporation’s shares have gained 3.7% in the past six months compared with the industry’s growth of 10.1%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Stocks Worth a Look

Here are some Industrial Product stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Deere & Company DE currently has an Earnings ESP of +0.74% and a Zacks Rank of 2. The Zacks Consensus Estimate for Deere’s second-quarter fiscal 2022 earnings is currently pegged at $6.65 per share, suggesting 17% growth from the year-ago quarter’s tally.

The Zacks Consensus Estimate for its quarterly revenues is pinned at $13.4 billion, suggesting year-over-year growth of 22.2%. Deere has a trailing four-quarter earnings surprise of 20.6%, on average. It has a long-term earnings growth of 13.5%.

Illinois Tool Works Inc. ITW currently has an Earnings ESP of +0.46% and a Zacks Rank #3. The Zacks Consensus Estimate for Illinois Tool’s first-quarter 2022 earnings have been stable in the past 30 days and is currently pegged at $2.07 per share. The projection indicates a 1.9% decline from the prior-year quarter’s tally.

The Zacks Consensus Estimate for Illinois Tool’s quarterly revenues is pegged at $3.7 billion, which indicates a year-over-year improvement of 6.3%. ITW has a trailing four-quarter earnings surprise of 3.7%, on average.

Eaton Corporation plc ETN currently has an Earnings ESP of +0.85% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings has been stable in the past 30 days at $1.60 per share, suggesting year-over-year growth of 11.1%.

The Zacks Consensus Estimate for Eaton’s quarterly revenues is pegged at $4.81 billion, which indicates an increase of 2.6% from the prior-year quarter’s levels. It has a trailing four-quarter earnings surprise of 6.98%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report

Eaton Corporation, PLC (ETN) : Free Stock Analysis Report

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AGCO Corporation (AGCO) : Free Stock Analysis Report

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