As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at agricultural machinery stocks, starting with The Toro Company (NYSE:TTC).
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 6 agricultural machinery stocks we track reported a mixed Q1; on average, revenues missed analyst consensus estimates by 1.8%. while next quarter's revenue guidance was 11.6% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the agricultural machinery stocks have fared somewhat better than others, they collectively declined, with share prices falling 3.5% on average since the previous earnings results.
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 $1.35 billion, flat year on year, in line with analysts' expectations. Overall, it was a strong quarter for the company with a solid beat of analysts' Residential revenue estimates and a decent beat of analysts' earnings estimates.
“We executed well in the second quarter, delivering results aligned with our expectations and achieving record net sales,” said Richard M. Olson, chairman and chief executive officer.
The stock is up 23.3% since reporting and currently trades at $98.22.
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Best Q1: Alamo Group (NYSE:ALG) Expanding its markets through acquisitions since its founding, Alamo (NSYE:ALG) designs, manufactures, and services high-quality vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural use.
Alamo Group reported revenues of $425.6 million, up 3.4% year on year, outperforming analysts' expectations by 3.6%. It was an impressive quarter for the company with a decent beat of analysts' earnings estimates.
Alamo Group achieved the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 5.4% since reporting. It currently trades at $184.75.
Weakest Q1: 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 $482.2 million, down 12.1% year on year, falling short of analysts' expectations by 10.3%. It was a weak quarter for the company with revenue guidance for next quarter missing analysts' expectations and a miss of analysts' earnings estimates.
Titan International posted the weakest performance against analyst estimates in the group. As expected, the stock is down 27.3% since the results and currently trades at $8.12.
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%. Zooming out, it was a weak quarter for the company with a miss of analysts' organic revenue estimates.
Lindsay had the slowest revenue growth among its peers. The stock is up 6.8% since reporting and currently trades at $120.95.
Deere (NYSE:DE) Revolutionizing agriculture with the first self-polishing cast-steel plow in the 1800s, Deere (NYSE:DE) manufactures and distributes advanced agricultural, construction, forestry, and turf care equipment.
Deere reported revenues of $13.61 billion, down 15.4% year on year, surpassing analysts' expectations by 2.2%. More broadly, it was a very strong quarter for the company with a decent beat of analysts' earnings estimates.
The stock is down 8.1% since reporting and currently trades at $380.64.
This content was originally published on Stock Story
