AGCO Earnings: Here’s Why Investors Like These Results

AGCO Corporation (NYSE:AGCO) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.95%.

AGCO Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 83.65% to $0.34 in the quarter versus EPS of $2.08 in the year-earlier quarter.

Revenue: Rose 13.3% to $3.05 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: AGCO Corporation reported adjusted EPS income of $0.34 per share. By that measure, the company missed the mean analyst estimate of $1.8. It beat the average revenue estimate of $2.83 billion.

Quoting Management: “AGCO’s strong performance in the second quarter produced record earnings and operating margins in excess of 10%,” stated Martin Richenhagen, Chairman, President and Chief Executive Officer. “Healthy market demand in North and South America generated growth in both sales and production. Low levels of material cost inflation coupled with our margin improvement initiatives also contributed to our improved results. We are successfully increasing margins through purchasing actions, factory efficiency projects and new product development. Our performance against our working capital targets is on track, and we are positioned for another year of strong cash flow generation.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS decreased 71.43% from $1.19 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.2 to a profit $1.18. For the current year, the average estimate has moved up from a profit of $5.58 to a profit of $5.62 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , ,  

More from The Cheat Sheet