As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the agricultural machinery industry, including Deere (NYSE:DE) 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 6 agricultural machinery stocks we track reported a mixed Q4. As a group, revenues missed analysts’ consensus estimates by 6.7% while next quarter’s revenue guidance was 1.9% above.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Weakest Q4: 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 $6.81 billion, down 35.1% year on year. This print fell short of analysts’ expectations by 25.6%. Overall, it was a softer quarter for the company with and a significant miss of analysts’ adjusted operating income estimates.
Deere delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $476.49.
Read our full report on Deere here, it’s free.
Best Q4: 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 $166.3 million, up 3.1% year on year, in line with analysts’ expectations. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates.
Lindsay pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 8.1% since reporting. It currently trades at $127.01.
Is now the time to buy Lindsay? Access our full analysis of the earnings results 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 $385.3 million, down 7.7% year on year, falling short of analysts’ expectations by 2.9%. It was a softer quarter, leaving some shareholders looking for more.
Interestingly, the stock is up 1.5% since the results and currently trades at $186.88.
Read our full analysis of Alamo’s results here.
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 $2.89 billion, down 24% year on year. This print came in 8.5% below analysts' expectations. Overall, it was a slower quarter as it also recorded a significant miss of analysts’ EPS and organic revenue estimates.
The stock is down 8.7% since reporting and currently trades at $94.46.
Read our full, actionable report on AGCO here, it’s free.
The Toro Company (NYSE:TTC)
Ceasing all production to support the war effort during World War II, Toro (NYSE:TTC) offers outdoor equipment for residential, commercial, and agricultural use.
The Toro Company reported revenues of $995 million, flat year on year. This result missed analysts’ expectations by 1%. Aside from that, it was a satisfactory quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates.
The stock is down 7.6% since reporting and currently trades at $72.11.
Read our full, actionable report on The Toro Company here, it’s free.
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