NYSE$AGCO

AGCO Corp · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

AGCO delivered record sales and earnings, driven by the farmer-first strategy and robust market conditions.

AGCO reported record third-quarter net sales of $3.1 billion, up 14.5% year-over-year, with North American sales up approximately 43%. The company's operating margin expanded by 140 basis points to a record 10.6%. Healthy farm fundamentals are supporting order boards that now stretch well into 2023 in some regions.

  • Record net sales of $3.1 billion, up 14.5% year-over-year, driven by North and South America.
  • North American sales up ~43% year-over-year from growth in Fendt and Precision Planting products.
  • Record operating margin of 10.6%, expanded 140 basis points through pricing and improved mix.
  • Reaffirms full year operating margin and earnings per share outlook.

Headline financials

Total Revenue

$3.12B

Previous: $2.73B+14.5%
EPS (adj)

$3.18

Previous: $2.41+32.0%
Operating Margin

10.6%

No prior period
Capital Expenditures

-$271M

Previous: -$199M-36.1%
Free Cash Flow

-$32.6M

Previous: -$17.4M-87.4%
Net Income

$238M

Previous: $181M+31.2%
Operating Income

$332M

Previous: $252M+31.8%
Gross Profit

$739M

Previous: $627M+17.9%
Cash & Equivalents

$607M

Previous: $537M+13.0%
Total Assets

$9.82B

Previous: $8.94B+9.8%
Stock-Based Comp

$7.8M

Previous: $5.9M+32.2%

Revenue & EPS history

AGCO · Revenue · Quarterly

$3.12B

Q3 2022+14.5%vs Q3 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

AGCO anticipates net sales for 2022 to range from $12.5 to $12.6 billion and adjusted earnings per share of $11.70 to $11.90.

Tailwinds

  • Gross and operating margins are projected to improve from 2021 levels.
  • Reflecting the impact of higher sales and production volumes.
  • Favorable pricing to offset material and labor cost inflation.
  • Increased investments in engineering.
  • Increased investments in other technology investments to support AGCO’s precision ag and digital initiatives

Headwinds

  • The ability of the Company’s supply chain to deliver parts and components on schedule remains difficult to predict.
  • AGCO’s results will be impacted if the actual supply chain delivery performance differs from these estimates.
  • COVID-19 has negatively impacted our business
  • Conflict in Ukraine on our business.
  • Potential for natural gas shortages, as well as shortages in other energy sources, throughout Europe, which could negatively impact our production in Europe both directly and through interrupting the supply of parts and components that we use.

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 Q3 2022

Historical avgQ3 2022

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro