The 10-second takeaway
For the quarter ended March 31 (Q1), AGCO beat expectations on revenues and crushed expectations on earnings per share.
Compared with the prior-year quarter, revenue grew significantly and GAAP earnings per share improved significantly.
Margins increased across the board.
AGCO booked revenue of $2.27 billion. The 13 analysts polled by S&P Capital IQ expected to see sales of $2.06 billion on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $1.80 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 $1.21. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.86 per share. GAAP EPS of $1.21 for Q1 were 49% higher than the prior-year quarter's $0.81 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 21.7%, 190 basis points better than the prior-year quarter. Operating margin was 7.5%, 140 basis points better than the prior-year quarter. Net margin was 5.3%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.67 billion. On the bottom line, the average EPS estimate is $1.62.
Next year's average estimate for revenue is $9.90 billion. The average EPS estimate is $5.07.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 272 members out of 297 rating the stock outperform, and 25 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give AGCO a green thumbs-up, and seven 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 $56.27.
Do you have the good savings habits you need to build long-term wealth? Check out our free report detailing three stocks to help build a smarter retirement portfolio.
- Add AGCO to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the 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 don't 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.