Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at AGCO (NYSE:AGCO) and the best and worst performers in the agricultural machinery industry.
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 strong Q1. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 2.1% below.
Luckily, agricultural machinery stocks have performed well with share prices up 12% on average since the latest earnings results.
AGCO (NYSE:AGCO)
With a history that features both organic growth and acquisitions, AGCO (NYSE:AGCO) designs, manufactures, and sells agricultural machinery and related technology.
AGCO reported revenues of $2.05 billion, down 30% year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
"AGCO performed well in the first quarter, which better positions us to navigate global trade uncertainties and continued weak industry demand," said Eric Hansotia, AGCO's Chairman, President and Chief Executive Officer.
AGCO delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 21.7% since reporting and currently trades at $103.10.
Is now the time to buy AGCO? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $187.1 million, up 23.5% year on year, outperforming analysts’ expectations by 4%. The business had an incredible quarter with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EPS estimates.
Lindsay pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 6% since reporting. It currently trades at $137.80.
Is now the time to buy Lindsay? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $1.32 billion, down 2.3% year on year, falling short of analysts’ expectations by 2.3%. It was a softer quarter as it posted a miss of analysts’ Professional revenue estimates and full-year EPS guidance missing analysts’ expectations.
As expected, the stock is down 5.4% since the results and currently trades at $71.45.
Read our full analysis of The Toro Company’s results here.
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 $490.7 million, up 1.8% year on year. This result topped analysts’ expectations by 5.7%. More broadly, it was a satisfactory quarter as it also logged an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates.
Titan International delivered the biggest analyst estimates beat among its peers. The stock is up 27.3% since reporting and currently trades at $9.32.
Read our full, actionable report on Titan International here, it’s free.
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 $11.17 billion, down 17.9% year on year. This number lagged analysts' expectations by 9.7%. Taking a step back, it was still a very strong quarter as it put up an impressive beat of analysts’ EBITDA estimates.
Deere had the weakest performance against analyst estimates among its peers. The stock is up 5.1% since reporting and currently trades at $522.20.
Read our full, actionable report on Deere here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.