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AGCO Corp (AGCO) to Report Q2 Earnings: What's in the Cards?

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AGCO Corporation AGCO is scheduled to report second-quarter 2021 results on Jul 29, before the opening bell.

Trend in Estimates

The Zacks Consensus Estimate for AGCO’s second-quarter earnings per share is pegged at $2.17, suggesting year-over-year growth of 95.5%. The Zacks Consensus Estimate for total revenues is pegged at $8.64 billion, indicating a year-over-year jump of 54%.

Q1 Results

In the last reported quarter, AGCO’s earnings and revenues increased year over year. Both bottom- and top-line figures beat the respective Zacks Consensus Estimate. The company delivered a trailing four quarters average earnings surprise of 428.3%.

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

Key Factors to Consider

Increased spending on agricultural equipment due to pick-up in farm income owing to improved agricultural commodity prices as well as investments in products with premium technologies and smart farming solutions will likely reflect on second-quarter’s revenue numbers. Replacement demand for old equipment is also likely to have aided its top-line performance in the quarter. Its cost-control actions are also likely to have supported the company’s margin during the to-be-reported quarter. However, supply chain-related challenges and higher engineering expenses might have affected AGCO’s quarterly performance.

Improved retail industry demand across North America and South America are likely to have aided AGCO’s performance during the June quarter. The Zacks Consensus Estimate for the North America segment’s quarterly net sales for the quarter under review is currently pegged at $709 million, implying year-over-year growth of 27.5%. The segment’s operating income is projected at $79 million. It had reported $65 million in the prior-year quarter.

The Zacks Consensus Estimate for the South America segment’s sales is pegged at $267 million for the April-June period, suggesting an increase of 49.1% from the year-earlier quarter. The segment is estimated to report an operating profit of $11.5 million in the second quarter. It had reported operating profit of $5.5 million in the prior-year quarter. Elevated commodity prices and favorable exchange rates have been supporting positive economics in South America.

The Zacks Consensus Estimate for net sales of the EME segment stands at $1,585 million, suggesting growth from $1,125 million reported in the year-ago quarter. The segment’s operating profit is pinned at $194 million, suggesting significant year-over-year growth of 113.2%.

The Zacks Consensus Estimate for the Asia/Pacific segment’s sales is pegged at $206 million, implying growth from $148 million reported in the prior-year quarter. The Zacks Consensus Estimate for the segment’s operating profit is currently pegged at $19.6 million. It had reported $14 million in the year-ago quarter.

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

Earnings Whispers

Our proven model doesn’t conclusively predict an earnings beat for AGCO this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

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 is -0.18%.

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

Price Performance

AGCO’s shares have gained 25.5% over the past six months, outperforming the industry’s growth of 23.1%.

Zacks Investment Research
Zacks Investment Research


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Stocks Worth a Look

Here are some Industrial Products stocks worth considering as these have the right combination of elements to post an earnings beat in their upcoming releases:

Pentair plc PNR has an Earnings ESP of +0.28% and sports a Zacks Rank #1, currently.

Terex Corporation TEX has an Earnings ESP of +15.41% and carries a Zacks Rank of 1, at present.

W.W. Grainger, Inc. GWW, currently a Zacks #2 Ranked stock, has an Earnings ESP of +0.71%.


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AGCO Corporation (AGCO) : Free Stock Analysis Report

W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report

Pentair plc (PNR) : Free Stock Analysis Report

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