NYSE$AGCO

AGCO Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

AGCO delivered robust sales growth and margin expansion in the first quarter as healthy farm economics continued to support elevated global demand.

AGCO reported record first quarter net sales of $3.3 billion, up 24% year-over-year. Record first quarter operating margin of 11.6%. The company raises full year sales, operating margin and earnings per share outlook. They also announced $5.00 per share special variable dividend and raised quarterly dividend 21%.

  • Record first quarter net sales of $3.3 billion, up 24% year-over-year
  • Record first quarter operating margin of 11.6%
  • Raises full year sales, operating margin and earnings per share outlook
  • Announced $5.00 per share special variable dividend and raised quarterly dividend 21%

Headline financials

Total Revenue

$3.33B

Previous: $2.69B+24.1%
EPS (adj)

$3.51

Previous: $2.39+46.9%
Operating Margin

11.6%

No prior period
Capital Expenditures

-$125M

Previous: -$66.3M-89.0%
Free Cash Flow

$107M

Previous: $85.5M+25.5%
Net Income

$233M

Previous: $152M+53.2%
Operating Income

$387M

Previous: $204M+89.9%
Gross Profit

$855M

Previous: $631M+35.4%
Cash & Equivalents

$559M

Previous: $656M-14.8%
Total Assets

$10.8B

Previous: $9.88B+9.5%
Stock-Based Comp

$14M

Previous: $7M+100.0%

Revenue & EPS history

AGCO · Revenue · Quarterly

$3.33B

Q1 2023+24.1%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

AGCO’s net sales for 2023 are expected to be approximately $14.5 billion, reflecting improved sales volumes and pricing. Gross and operating margins are projected to improve from 2022 levels, reflecting the impact of higher sales and production volumes as well as pricing. Based on these assumptions, 2023 earnings per share are targeted at approximately $14.40.

Tailwinds

  • Improved sales volumes
  • Improved pricing
  • Gross margins are projected to improve from 2022 levels
  • Operating margins are projected to improve from 2022 levels
  • Increased engineering and other technology investments to support AGCO’s precision agriculture and digital initiatives

Headwinds

  • COVID-19 has negatively impacted our business
  • We cannot predict or control the impact of the conflict in Ukraine on our business
  • Our financial results depend entirely upon the agricultural industry
  • We have experienced substantial and sustained volatility with respect to currency exchange rate and interest rate changes, which can adversely affect our reported results of operations and the competitiveness of our products.
  • Our business increasingly is subject to regulations relating to privacy and data protection, and if we violate any of those regulations, or otherwise are the victim of a cyberattack, we could be subject to significant claims, penalties and damages.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.5%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+0.8%

Avg return

30 days after

51%

35 / 68 earnings

Positive

+13.1%

Q4 2021

Best reaction

-12.2%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.9%-3.3%-1.1%
Q4 2025+2.2%+11.6%+1.8%
Q3 2025-0.6%+0.6%-0.2%
Q1 2025+10.1%+11.2%+15.5%
Q4 2024-5.1%-6.9%-0.6%
Q3 2024-3.4%-6.1%-0.4%
Q2 2024-7.5%-12.2%-11.4%
Q1 2024-0.3%+4.4%-4.3%
Q4 2023-2.5%-4.9%-6.5%
Q3 2023+4.8%+6.8%+1.2%
Q2 2023-3.2%-2.6%-12.9%
Q1 2023+2.3%+1.9%-10.4%
Q4 2022-0.4%+2.6%+2.0%
Q3 2022-6.9%-2.6%+5.9%
Q2 2022+4.9%+1.6%+6.5%
Q1 2022+5.6%-4.3%+0.8%
Q4 2021+13.1%+10.7%+12.1%
Q3 2021-3.4%-1.4%-7.3%
Q2 2021+5.0%+6.7%+11.3%
Q1 2021-6.6%-2.3%-11.4%
Q4 2020+1.6%+3.3%+13.3%
Q3 2020+7.9%+13.2%+16.1%
Q2 2020+3.5%+7.1%+14.3%
Q1 2020-2.3%+3.0%+23.0%
Q4 2019-8.7%-8.0%-16.1%
Q3 2019-1.1%+0.9%+2.6%
Q2 2019+0.8%-4.2%-10.2%
Q1 2019+6.8%+4.4%-5.0%
Q4 2018-2.3%-4.4%+0.9%
Q3 2018+8.1%+10.2%+12.8%
Q2 2018+2.2%+3.8%-0.5%
Q1 2018-5.5%-4.0%+1.5%
Q4 2017-2.0%-3.7%-6.5%
Q3 2017-2.8%-3.4%-0.9%
Q2 2017+0.2%+0.1%-6.8%
Q1 2017+1.3%-0.3%-0.2%
Q4 2016+1.6%+2.6%-6.2%
Q3 2016-3.3%-1.2%+9.3%
Q2 2016-0.7%-0.1%-2.4%
Q1 2016+0.2%
Q4 2015-7.8%
Q3 2015+9.5%
Q2 2015+6.0%
Q1 2015+6.5%
Q4 2014+6.5%
Q3 2014-0.7%
Q2 2014-5.2%
Q1 2014-1.9%
Q4 2013-4.2%
Q3 2013-8.8%
Q2 2013+4.2%
Q1 2013+1.1%
Q4 2012+3.6%
Q3 2012-1.2%
Q2 2012+10.9%
Q1 2012+5.3%
Q4 2008-0.5%
Q4 2011-0.5%
Q3 2011+2.6%
Q2 2011-12.2%
Q1 2010+2.4%
Q1 2011+1.5%
Q4 2010+3.7%
Q3 2009+0.2%
Q3 2010+0.2%
Q2 2009-1.3%
Q2 2010-1.3%
Q4 2009-1.3%

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