Looking back on agricultural machinery stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Titan International (NYSE:TWI) and its peers.
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.
While some agricultural machinery stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.2% since the latest earnings results.
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. This print fell short of analysts’ expectations by 3.6%. Overall, it was a slower quarter for the company with EPS in line with analysts’ estimates and EBITDA guidance for next quarter missing analysts’ expectations.
Unsurprisingly, the stock is down 6.2% since reporting and currently trades at $8.53.
Read our full report on Titan International here, it’s free.
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, outperforming analysts’ expectations by 4.6%. The business had an incredible quarter with a solid beat of analysts’ organic revenue estimates and a beat of analysts’ EPS estimates.
Lindsay achieved the fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $138.23.
Is now the time to buy Lindsay? Access our full analysis of the earnings results here, it’s free.
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, falling short of analysts’ expectations by 11.8%. It was a mixed quarter as it posted an impressive beat of analysts’ EBITDA estimates.
Deere delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5% since the results and currently trades at $487.49.
Read our full analysis of Deere’s results here.
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 print surpassed analysts’ expectations by 2.4%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates.
The stock is down 5.5% since reporting and currently trades at $212.69.
Read our full, actionable report on Alamo 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. This number topped analysts’ expectations by 5.9%. It was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
AGCO pulled off the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is up 5% since reporting and currently trades at $111.89.
Read our full, actionable report on AGCO here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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