AGCO shares fall 3% as Q3 results miss estimates, guidance cut

DULUTH, Georgia - Agricultural equipment maker AGCO Corporation (NYSE:AGCO) saw its shares drop 3.4% after reporting third quarter earnings that fell short of analyst expectations and cutting its full-year outlook.

AGCO posted adjusted earnings per share of $0.68 for Q3, well below the $1.08 analysts were forecasting. Revenue came in at $2.6 billion, missing estimates of $2.9 billion and down 24.8% YoY.

The company cited weakening demand in the agriculture industry as low commodity prices and high input costs led farmers to delay equipment purchases. AGCO said it had to cut production to help reduce inventories at both the company and dealer levels.

"We continue to execute against our Farmer-First strategy focused on enhancing profitability through the cycle with our three high-margin initiatives, recent portfolio moves and aggressive actions to control expenses including our ongoing restructuring program," said Eric Hansotia, AGCO's Chairman, President and CEO.

For the full year 2024, AGCO now expects adjusted EPS of approximately $7.50, down from its previous guidance and below the $7.93 consensus estimate. The company projects full-year revenue of about $12.5 billion.

Despite the disappointing results, AGCO reaffirmed its full-year adjusted operating margin target of 9%, which it said "underscores this transformation, especially considering the significant market downturn in the third quarter."

The company noted it is making progress on its precision agriculture business, introducing new autonomous solutions as part of its goal of full autonomy across the crop cycle by 2030.

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Source: Investing.com