AGCO Earnings Prediction
The chart below shows how AGCO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AGCO sees a +3.10% change in stock price 10 days leading up to the earnings, and a -1.44% change 10 days following the report. On the earnings day itself, the stock moves by -2.30%. This data can give you a slight idea of what to expect for the next quarter's release.
AGCO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.89B
-24.03%
11.08%
Gross Margin
22.93%
-10.01%
0.31%
Operating Margin
8.17%
-22.56%
69.15%
Net Margin
-10.86%
-221.75%
-1078.38%
EPS
-3.43
-175.55%
-957.50%
No Data Available
AGCO Earnings Analysis
AGCO Corp Corporation (AGCO.N) Earnings Conference Call
Positive
Adjusted Operating Margin Resilience: Strong adjusted operating margin of 9.9% in Q4 2024, demonstrating resilience in a challenging industry downturn, with a full-year adjusted operating margin of 8.9%.
Earnings Per Share Achievement: Achieved $7.50 in adjusted earnings per share for the full year 2024, reflecting effective cost management and operational improvements despite a 19% decline in sales.
Precision Ag Sales Growth: Precision Ag sales are projected to reach $2 billion by 2029, with over 1,000 PTx dealers established in 2024, indicating strong growth potential in this segment.
Parts Revenue Growth: Consolidated replacement parts revenue increased by 4% year-over-year to approximately $418 million in Q4 2024, showcasing the strength of the parts business even in a declining sales environment.
Special Dividend Commitment: AGCO paid a special variable dividend of $2.50 per share in Q2 2024, contributing to over $1.2 billion in special dividends paid over the last four years, reflecting a commitment to returning value to shareholders.
Negative
Earnings Performance Shortfall: AGCO Corporation reported a fourth quarter EPS of $1.97, missing expectations of $2.01, indicating a shortfall in earnings performance.
Net Sales Decline: Net sales decreased approximately 24% in Q4 2024 compared to Q4 2023, reflecting significant declines in demand across all key markets.
Decline in Net Sales: North American net sales fell approximately 39% year-over-year, driven by lower farm income and reduced purchasing behavior among farmers.
Goodwill Impairment Charge: A goodwill impairment charge of over $350 million was recorded in Q4 2024 related to the PTx Trimble joint venture, highlighting challenges in achieving projected cash flows.
Production Hours Decline: Production hours were down approximately 33% in Q4 2024 compared to Q4 2023, with expectations for further reductions of 15% to 20% in 2025 due to weak industry conditions.
AGCO FAQs
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AGCO Earning Call Sentiment
AGCO Corporation (NYSE:AGCO) Q4 2024 Earnings Call Transcript
AGCO.N
0.51%Positive
The earnings call reveals a decline in key financial metrics, including EPS and net sales, alongside reduced guidance. Despite positive shareholder returns and some product innovation, market conditions and higher costs have negatively impacted margins and sales. The Q&A highlights regional profitability concerns and inventory issues, while management's unclear responses on strategic impacts add uncertainty. The negative sentiment is further supported by a significant goodwill impairment charge and reduced production hours, indicating challenges in market demand and operational efficiency.
