AGCO Corp. AGCO delivered an adjusted earnings per share (EPS) of $1.97 in fourth-quarter 2024 compared with the prior-year quarter’s $3.78. However, the reported figure beat the Zacks Consensus Estimate for EPS of $1.80.
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Including one-time items, AGCO posted a loss of $5.69 against the EPS of $15.63 in 2023.
Net sales decreased 24% year over year to $2.89 billion in the December-end quarter. The top line missed the Zacks Consensus Estimate of $3.16 billion. Excluding the unfavorable currency-translation impacts of 1.8%, net sales fell 22.2% year over year.
AGCO Corporation Price, Consensus and EPS Surprise
AGCO Corporation price-consensus-eps-surprise-chart | AGCO Corporation Quote
AGCO Corp’s Q4 Operational Update
Cost of sales decreased 22% year over year to $2.2 billion in the fourth quarter. Gross profit decreased 29.9% year over year to $689 million in the reported quarter. The gross margin was 23.9% compared with the prior-year quarter’s 25.9%.
Selling, general and administrative costs were $323 million compared with the year-ago quarter’s $417 million. Adjusted income from operations fell 29.6% year over year to $285 million. The operating margin was 9.9% compared with the year-earlier quarter’s 10.7%.
AGCO’s Q4 Segmental Performance
Sales in the North America segment moved down 38.7% year over year to $547 million in the fourth quarter. The reported figure missed our estimate of $686 million. The segment reported an operating income of $4 million compared with the prior-year quarter’s $80.5 million. Our projection for the segment’s operating income was $69 million. The downside was led by soft industry sales and lower end-market demand.
Sales in the South America segment decreased 31.6% year over year to $282 million. We expected the segment’s net sales to be $260 million. The downside was led by decreased sales, low production volumes and negative pricing. The segment reported an operating profit of $30 million compared with the prior-year quarter’s $15.7 million. Our estimate for the segment's operating income was $36.6 million.
The EME (Europe/Middle East) segment’s sales were $1.88 billion compared with $2.26 billion in the year-ago period. The reported figure missed our estimate of $2.02 billion. EME’s operating income was $271 million compared with the year-ago quarter’s $367 million. We predicted EME’s operating income to be $269.5 million.
Sales in the Asia/Pacific segment were down 26.2% year over year to $176 million. We expected the segment’s sales to be $199 million. The segment registered an operating profit of $5.3 million, down 72.3% year over year. Our projection for the segment’s operating profit was $10.3 million.
AGCO Corp’s Cash Flow Update
AGCO reported cash and cash equivalents of $613 million at the end of 2024, up from $596 million at 2023-end. Net cash provided by operating activities totaled $0.69 billion in 2024 compared with $1.10 billion in 2023.
AGCO’s 2024 Performance
The company delivered an adjusted EPS of $7.50 compared with $15.55 in 2023. The reported figure surpassed the Zacks Consensus Estimate of $7.33.
Including one-time items, AGCO posted a loss of $5.69 against the year-ago’s EPS of $15.63.
Sales decreased 19.1% year over year to $11.66 billion in 2024. The top line missed the Zacks Consensus Estimate of $11.93 billion. Excluding the unfavorable currency-translation impacts of 0.6%, net sales fell 18.5% year over year.
AGCO Corp’s 2025 Guidance
AGCO expects net sales of $9.6 billion for 2025. The company anticipates lower sales volumes and unfavorable foreign currency translation to impact the 2025 results. Pricing is expected to be fairly flat. Considering these, management projects an EPS of $4.00-$4.50 for 2025.
AGCO Stock’s Price Performance
The company’s shares have lost 13.6% in the past year against the industry’s growth of 20.8%.
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AGCO Corp’s Zacks Rank
AGCO currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
AGCO’s Peer Performances
CNH Industrial CNH reported fourth-quarter 2024 adjusted EPS of 15 cents, which declined from 42 cents in the prior-year quarter. The figure also missed the Zacks Consensus Estimate for EPS of 19 cents.
In the fourth quarter, consolidated sales declined nearly 28% from the year-ago level to $4.88 billion and missed the consensus mark of $4.89 billion. CNH’s net sales from industrial activities came in at $4.13 billion, down 31% due to lower shipment volumes.
Lindsay Corporation LNN delivered EPS of $1.57 in first-quarter fiscal 2025 (ended Nov. 30, 2024), beating the Zacks Consensus Estimate of $1.34. The bottom line improved 15% year over year.
LNN generated sales of $166 million, up from $161 million in the year-ago quarter. The top line met the Zacks Consensus Estimate.
Farm Equipment Stocks Awaiting Results
Deere & Company DE is scheduled to release its first-quarter fiscal 2025 results on Feb. 13.
The Zacks Consensus Estimate for DE’s EPS is pegged at $3.14 for the fiscal first quarter, implying a decline of 49.6% from the year-ago reported figure. The Zacks Consensus Estimate for total sales is pinned at $7.70 billion, indicating a year-over-year decrease of 26.6%
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