AGCO Earnings: Here’s Why Investors Like These Results

AGCO Corporation (NYSE:AGCO) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.41%.

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AGCO Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 1.65% to $1.19 in the quarter versus EPS of $1.21 in the year-earlier quarter.

Revenue: Rose 5.69% to $2.4 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: AGCO Corporation reported adjusted EPS income of $1.19 per share. By that measure, the company beat the mean analyst estimate of $0.88. It beat the average revenue estimate of $2.24 billion.

Quoting Management: “AGCO delivered healthy sales growth in the first quarter and exceeded its first quarter operating margin targets,” stated Martin Richenhagen, Chairman, President and Chief Executive Officer. “We benefited from strong market demand in North and South America as well as from our margin improvement initiatives focused on purchasing actions and factory productivity. In addition, production rates at our new Fendt assembly facility in Germany increased to normal levels during the first quarter. As expected, sales mix and Fendt productivity negatively impacted EAME’s first quarter operating margins; however, we remain on track to deliver significant EAME margin improvement for the full year of 2013.”

Key Stats (on next page)…

Revenue decreased 11.11% from $2.7 billion in the previous quarter. EPS increased 20.2% from $0.99 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 $1.78 to a profit $1.69. For the current year, the average estimate has moved down from a profit of $5.54 to a profit of $5.34 over the last ninety days.

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