AGCO Crushes Q3 Earnings Expectations with Growth in Precision Ag
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AGCO Corp. on Tuesday posted third quarter results that surpassed analyst expectations and pushed up share prices, fueled by strong demand for tractor and precision agriculture equipment, reports Agriculture Dive.
Net sales grew more than 10% to $3.5 billion driven by favorable activity in South America, where demand for high horsepower, higher margin tractors and pricing tailwinds were strong. Net income totaled $280.6 million, an 18% increase from the same period last year, beating Zacks’ consensus expectations for the fourth consecutive time.
Company shares rose 2% on news of the strong quarter. AGCO’s strategy of focusing on margin-rich businesses, including precision technologies, is setting the company up for another record year, CEO Eric Hansotia said in an earnings call. AGCO’s $2 billion deal to acquire an 85% interest in Trimble’s agricultural assets and technologies and create a joint venture is pending regulatory approval.
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