AGCO Shares Drop 3% as Q3 Results Fall Short of Estimates and Guidance is Cut

DULUTH, Georgia - Agricultural equipment manufacturer AGCO Corporation (NYSE:AGCO) shares fell 3.4% after reporting third-quarter earnings that missed analyst expectations and lowering its year-end outlook.
AGCO reported adjusted earnings of $0.68 per share for the third quarter, significantly below analysts' estimates of $1.08. Revenue came in at $2.6 billion, falling short of the $2.9 billion forecast and representing a 24.8% decline year-over-year.
The company cited weakening demand in the agricultural sector due to low commodity prices and high input costs causing farmers to delay equipment purchases. AGCO stated it had to curtail production to help reduce inventory at both the company and dealer levels.
AGCO's Chairman, President, and CEO Eric Hansotia said, "We continue to execute on our Farmer First strategy, focusing on increasing profitability throughout the cycle with aggressive actions to control costs, including our three high-margin initiatives, recent portfolio moves, and ongoing restructuring program."
AGCO has reduced its adjusted earnings per share expectation for 2024 to approximately $7.50, below the previous guidance and the consensus estimate of $7.93. The company anticipates year-end revenue will be around $12.5 billion.
Despite the disappointing results, AGCO reaffirmed its adjusted operating margin target of 9% for the year-end, noting that "this underscores the transformation, especially given the significant market decline in the third quarter."
The company stated it is making progress in precision agriculture and is offering new autonomous solutions as part of its goal to achieve full autonomy throughout the planting cycle by 2030.