AGCO Corp (AGCO) to Report Q3 Earnings: What's in the Offing?
AGCO Corporation AGCO is scheduled to report third-quarter 2020 results on Nov 3, before the opening bell.
Which Way are the Estimates Trending?
The Zacks Consensus Estimate for AGCO’s earnings per share is pegged at $1.02 for the third quarter, suggesting year-over-year growth of 24.4%. The Zacks Consensus Estimate for total revenues is pegged at $2.16 billion for the period, indicating a year-over-year improvement of 2.3%. The company has a trailing four-quarter average earnings surprise of 409.5%.
Let’s see how things have shaped up prior to this announcement.
AGCO Corporation Price and EPS Surprise
AGCO Corporation price-eps-surprise | AGCO Corporation Quote
Earnings Whispers
Our proven model conclusively predicts 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.
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 +6.07%.
Zacks Rank: AGCO currently flaunts a Zacks Rank of 1.
Key Factors to Consider
Replacement demand for old equipment, increased spending on agricultural equipment as well as AGCO’s continued investments in products with premium technologies and smart farming solutions will likely reflect on the third quarter’s revenue numbers. Further, cost-control actions are likely to have supported the company’s margin during the to-be-reported quarter. However, uncertainties regarding the COVID-19 pandemic might have affected AGCO’s quarterly performance.
Bleak retail industry demand across North America, South America and the EME (Europe/Middle East) regions are likely to have marred AGCO’s performance in the September-end quarter. The Zacks Consensus Estimate for the North America segment’s quarterly net sales for the quarter under review is currently pegged at $506 million, calling for a decline of 5.6% from the year-ago quarter. The segment’s operating income is projected at $28.6 million, down from the prior-year quarter’s $32.5 million.
The Zacks Consensus Estimate for the South America segment’s sales is pegged at $235 million for the July-September period, suggesting a fall of 1.7% from the year-earlier quarter. The segment is estimated to report an operating profit of $0.58 million, as against the operating loss of $5.6 million seen in the prior-year quarter.
The Zacks Consensus Estimate for net sales of the EME segment is pegged at $1,290 million, calling for year-over-year growth of 12.6%. The segment operating profit is pinned at $149 million, suggesting year-over-year increase of 22.1%.
The Zacks Consensus Estimate for the Asia/Pacific segment’s sales is pinned at $190 million compared with the prior-year quarter’s $188 million. The Zacks Consensus Estimate for the segment’s operating profit is currently pegged at $10.8 million, indicating a fall of 6.4% from the year-ago quarter.
Price Performance
AGCO’s shares have gained 44.7% over the past six months compared with the industry’s growth of 55.3%.
Other Stocks Worth a Look
Here are some other Industrial Products stocks worth considering as these too have the right combination of elements to post an earnings beat in their upcoming releases:
Flowserve Corporation FLS has an Earnings ESP of +2.56% and currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Emerson Electric Co. EMR has a Zacks Rank of 3 and an Earnings ESP of +1.97%, at present.
Deere & Company DE, currently a Zacks #3 Ranked stock, has an Earnings ESP of +9.76%.
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