NYSE$AGCO

AGCO Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

AGCO reported record third-quarter results driven by robust demand and successful execution of its Farmer-First strategy.

AGCO reported record third-quarter net sales of $3.5 billion, a 10.7% increase compared to the third quarter of 2022. Reported net income was $3.74 per share, and adjusted net income was $3.97 per share. The company raised its full-year operating margin and earnings per share outlook.

  • Net sales for the third quarter were approximately $3.5 billion, an increase of 10.7% compared to the third quarter of 2022.
  • Reported net income was $3.74 per share for the third quarter of 2023, and adjusted net income was $3.97 per share.
  • Europe/Middle East sales increased 14.2%, North America sales increased 3.4%, South America sales increased 26.0%, and Asia/Pacific/Africa sales decreased 16.9%.
  • The company announced the planned acquisition of Trimble’s ag assets and technologies through the formation of a joint venture with Trimble.

Headline financials

Total Revenue

$3.46B

Previous: $3.12B+10.7%
EPS (adj)

$3.97

Previous: $3.18+24.8%
Operating Margin

12.3%

Previous: 10.6%+16.0%
Capital Expenditures

-$358M

Previous: -$271M-32.2%
Free Cash Flow

-$77.1M

Previous: -$32.6M-136.5%
Net Income

$281M

Previous: $238M+17.9%
Operating Income

$424M

Previous: $332M+27.6%
Gross Profit

$934M

Previous: $739M+26.4%
Cash & Equivalents

$681M

Previous: $607M+12.1%
Total Assets

$11.4B

Previous: $9.82B+15.6%
Stock-Based Comp

$10.2M

Previous: $7.8M+30.8%

Revenue & EPS history

AGCO · Revenue · Quarterly

$3.46B

Q3 2023+10.7%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

AGCO’s net sales for 2023 are expected to be approximately $14.7 billion, reflecting improved sales volumes and pricing. Gross and operating margins are projected to improve from 2022 levels. 2023 reported earnings per share are targeted at approximately $15.08 and adjusted earnings per share at approximately $15.75.

Tailwinds

  • Improved sales volumes
  • Improved pricing
  • Gross margin improvement
  • Operating margin improvement
  • Increased engineering and technology investments

Headwinds

  • Adverse effects on the agricultural industry
  • Risks related to foreign laws, taxes and tariffs
  • Uncertain impact of the conflict in Ukraine
  • Volatility with respect to currency exchange rate and interest rate changes
  • Dependence on suppliers for components, parts and raw materials

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 2023

Historical avgQ3 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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