Agri machinery firm AGCO beats Q2 sales estimates, adjusted EPS rises
Overview
AGCO Q2 net sales of $2.6 bln beat analyst expectations, per LSEG data
Adjusted EPS for Q2 beats consensus, reflecting disciplined cost control
Co announces new $1.0 bln share repurchase program, indicating confidence
Outlook
AGCO expects full-year 2025 net sales of approximately $9.8 bln
Company projects full-year EPS between $4.75 and $5.00
AGCO anticipates adjusted operating margins of approximately 7.5%
Company says tariffs and mitigation strategies factored into projections
Result Drivers
PRODUCTION CUTS - AGCO's strong earnings and cash flow were driven by aggressive production cuts and inventory reduction efforts
COST CONTROL - Operating margins benefited from disciplined cost control and restructuring initiatives
TRADE UNCERTAINTY - Global trade uncertainty impacted farmer confidence and investment decisions, notably in North America and Europe
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $2.64 bln | $2.51 bln (11 Analysts) |
Q2 Adjusted EPS | Beat | $1.35 | $1.08 (13 Analysts) |
Q2 EPS | $4.22 | ||
Q2 Net Income | $314.40 mln | ||
Q2 Gross Profit | $658.60 mln | ||
Q2 Operating Income | $164 mln | ||
Q2 Operating Margin | 6.2% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."
Wall Street's median 12-month price target for AGCO Corp is $112.00, about 4.8% above its July 30 closing price of $106.64
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago
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