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AGCO Corp (AGCO) to Report Q4 Earnings: What's in the Cards?

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AGCO Corporation AGCO is scheduled to report fourth-quarter 2020 results on Feb 4, before the opening bell.

Which Way are the Estimates Trending?

The Zacks Consensus Estimate for AGCO’s fourth-quarter earnings per share is pegged at $1.08, suggesting year-over-year growth of 14.9%. The Zacks Consensus Estimate for total revenues is pegged at $2.49 billion for the period compared with the prior-year quarter’s $2.51 billion. The company has a trailing four-quarter average earnings surprise of 434.48%.

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

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 +3.34%.

Zacks Rank: AGCO currently flaunts a Zacks Rank of 1.

Key Factors to Consider

Replacement demand for old equipment, increased spending on agricultural equipment due to pick up in farm income, improved agricultural commodity prices as well as AGCO’s continued investments in products with premium technologies and smart farming solutions will likely reflect on the fourth quarter’s revenue numbers. Further, its 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.

Improved retail industry demand across North America and South America are likely to have aided AGCO’s performance in the December-end quarter. The Zacks Consensus Estimate for the North America segment’s quarterly net sales for the quarter under review is currently pegged at $493 million, calling for a decline of 8.8% from the year-ago period. The segment’s operating income is projected at $5.8 million, down from the prior-year quarter’s $7.1 million.

The Zacks Consensus Estimate for the South America segment’s sales is pegged at $240 million for the October-December period, suggesting an increase of 8.6% from the year-earlier quarter. The segment is estimated to report an operating profit of $3.68 million in the fourth quarter compared with the prior-year quarter’s $11 million. Solid crop production in Brazil and Argentina as well as favorable exchange rates have been supporting positive economics in South America.

The Zacks Consensus Estimate for net sales of the EME segment is pinned at $1,506 million compared with the $1,515 million reported in the year ago quarter. The segment operating profit is pinned at $177 million, suggesting a year-over-year decline of 1.7%.

The Zacks Consensus Estimate for the Asia/Pacific segment’s sales is pinned at $252 million compared with the prior-year quarter’s $237 million. The Zacks Consensus Estimate for the segment’s operating profit is currently pegged at $16.9 million, indicating a fall of 21.4% from the year-ago period.

Price Performance

AGCO’s shares have gained 69.5% over the past six months outperforming the industry’s growth of 61.8%.



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:

Terex Corporation TEX has an Earnings ESP of +1,900.18% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sealed Air Corporation SEE carries a Zacks Rank of 2 and has an Earnings ESP of +2.90%, at present.

Lincoln Electric Holdings, Inc. LECO, currently a Zacks #3 Ranked stock, has an Earnings ESP of +4.55%.

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