The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AGCO beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share improved significantly.
Margins grew across the board.
AGCO booked revenue of $2.10 billion. The 11 analysts polled by S&P Capital IQ predicted revenue of $2.02 billion. Sales were 16% higher than the prior-year quarter's $1.66 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.87. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.75 per share on the same basis. GAAP EPS of $2.90 for Q3 were 230% higher than the prior-year quarter's $0.88 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 20.8%, 190 basis points better than the prior-year quarter. Operating margin was 7.4%, 80 basis points better than the prior-year quarter. Net margin was 11.3%, 740 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.53 billion. On the bottom line, the average EPS estimate is $1.33.
Next year's average estimate for revenue is $8.78 billion. The average EPS estimate is $4.34.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 270 members rating the stock outperform and 25 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 73 give AGCO a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AGCO is hold, with an average price target of $51.73.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.