The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how agricultural machinery stocks fared in Q2, starting with Lindsay (NYSE:LNN).
Agricultural machinery companies are investing to develop and produce more precise machinery, automated systems, and connected equipment that collects analyzable data to help farmers and other customers improve yields and increase efficiency. On the other hand, agriculture is seasonal and natural disasters or bad weather can impact the entire industry. Additionally, macroeconomic factors such as commodity prices or changes in interest rates–which dictate the willingness of these companies or their customers to invest–can impact demand for agricultural machinery.
The 5 agricultural machinery stocks we track reported a strong Q2. As a group, revenues missed analysts’ consensus estimates by 0.5% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Best Q2: Lindsay (NYSE:LNN)
A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE:LNN) provides a variety of proprietary water management and road infrastructure products and services.
Lindsay reported revenues of $169.5 million, up 21.7% year on year. This print exceeded analysts’ expectations by 4.6%. Overall, it was an incredible quarter for the company with a solid beat of analysts’ organic revenue estimates and a beat of analysts’ EPS estimates.
“Continued strength in our international irrigation business, supported by ongoing project revenues in the MENA region, led to strong irrigation revenue growth for the quarter and a 22 percent increase in our overall revenues compared to last year," said Randy Wood, President and Chief Executive Officer.
Lindsay pulled off the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 2.6% since reporting and currently trades at $140.83.
Is now the time to buy Lindsay? Access our full analysis of the earnings results here, it’s free.
AGCO (NYSE:AGCO)
With a history that features both organic growth and acquisitions, AGCO (NYSE:AGCO) designs, manufactures, and sells agricultural machinery and related technology.
AGCO reported revenues of $2.64 billion, down 18.8% year on year, outperforming analysts’ expectations by 5.9%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
AGCO pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 6.9% since reporting. It currently trades at $114.
Is now the time to buy AGCO? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Titan International (NYSE:TWI)
Acquiring Goodyear’s farm tire business in 2005, Titan (NSYE:TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles.
Titan International reported revenues of $460.8 million, down 13.4% year on year, falling short of analysts’ expectations by 3.6%. It was a slower quarter as it posted EPS in line with analysts’ estimates and EBITDA guidance for next quarter missing analysts’ expectations.
As expected, the stock is down 4.7% since the results and currently trades at $8.66.
Read our full analysis of Titan International’s results here.
Deere (NYSE:DE)
Revolutionizing agriculture with the first self-polishing cast-steel plow in the 1800s, Deere (NYSE:DE) manufactures and distributes advanced agricultural, construction, forestry, and turf care equipment.
Deere reported revenues of $10.36 billion, down 9% year on year. This print came in 11.8% below analysts' expectations. Overall, it was a mixed quarter for the company.
Deere had the weakest performance against analyst estimates among its peers. The stock is down 4.5% since reporting and currently trades at $489.69.
Read our full, actionable report on Deere here, it’s free.
Alamo (NYSE:ALG)
Expanding its markets through acquisitions since its founding, Alamo (NSYE:ALG) designs, manufactures, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural use.
Alamo reported revenues of $419.1 million, flat year on year. This result beat analysts’ expectations by 2.4%. It was a strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates.
The stock is down 2.2% since reporting and currently trades at $220.18.
Read our full, actionable report on Alamo here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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