The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AGCO beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.
Margins dropped across the board.
AGCO booked revenue of $2.70 billion. The 14 analysts polled by S&P Capital IQ predicted a top line of $2.60 billion on the same basis. GAAP reported sales were 7.4% higher than the prior-year quarter's $2.52 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.99. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.98 per share. GAAP EPS of $1.04 for Q4 were 64% lower than the prior-year quarter's $2.91 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.5%, 130 basis points worse than the prior-year quarter. Operating margin was 5.2%, 220 basis points worse than the prior-year quarter. Net margin was 3.8%, 750 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.28 billion. On the bottom line, the average EPS estimate is $1.06.
Next year's average estimate for revenue is $10.25 billion. The average EPS estimate is $5.49.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 310 members out of 332 rating the stock outperform, and 22 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give AGCO a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AGCO is outperform, with an average price target of $54.81.
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