Stock Story -
Agricultural and farm machinery company AGCO (NYSE:AGCO) will be reporting results tomorrow before market open. Here's what investors should know.
AGCO Corporation missed analysts' revenue expectations by 3% last quarter, reporting revenues of $2.93 billion, down 12.1% year on year. It was a weak quarter for the company, with a miss of analysts' organic revenue estimates.
Is AGCO Corporation a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting AGCO Corporation's revenue to decline 8.9% year on year to $3.48 billion, a reversal from the 29.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.96 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AGCO Corporation has missed Wall Street's revenue estimates four times over the last two years.
Looking at AGCO Corporation's peers in the heavy machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Lindsay's revenues decreased 15.4% year on year, missing analysts' expectations by 3.6%, and PACCAR (NASDAQ:PCAR) reported a revenue decline of 2.1%, in line with consensus estimates. Lindsay traded up 8.6% following the results while PACCAR was down 9.3%.
Read the full analysis of Lindsay's and PACCAR's results on StockStory.
There has been positive sentiment among investors in the heavy machinery segment, with share prices up 10.9% on average over the last month. AGCO Corporation is up 8.3% during the same time and is heading into earnings with an average analyst price target of $117.7 (compared to the current share price of $103.52).
