As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at agricultural machinery stocks, starting with Alamo (NYSE:ALG).
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 softer Q3. As a group, revenues missed analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 11.1% below.
In light of this news, share prices of the companies have held steady as they are up 2.6% on average since the latest earnings results.
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 $401.3 million, down 4.4% year on year. This print fell short of analysts’ expectations by 0.7%. Overall, it was a softer quarter for the company with a miss of analysts’ EPS estimates.
Jeff Leonard, Alamo Group's President, and Chief Executive Officer commented, "Our financial results for the third quarter were largely in line with our expectations given the conditions prevalent in our markets. As we experienced in the second quarter, market activity across our two segments continued to diverge.
Alamo Total Revenue
Interestingly, the stock is up 8.8% since reporting and currently trades at $184.53.
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 $9.28 billion, down 32.8% year on year, in line with analysts’ expectations. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates.
Deere Total Revenue
The market seems happy with the results as the stock is up 7.1% since reporting. It currently trades at $433.84.
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 $448 million, up 11.5% year on year, falling short of analysts’ expectations by 5%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations.
Titan International delivered the fastest revenue growth but had the weakest full-year guidance update in the group. As expected, the stock is down 5.8% since the results and currently trades at $6.94.
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 $155 million, down 7.3% year on year. This result topped analysts’ expectations by 6.5%. Zooming out, it was a mixed quarter as it also logged a solid beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.
Lindsay delivered the biggest analyst estimates beat among its peers. The stock is up 13.9% since reporting and currently trades at $129.99.
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 $1.08 billion, up 9.4% year on year. This result lagged analysts' expectations by 1.3%. It was a disappointing quarter as it also logged full-year EPS guidance missing analysts’ expectations.
The stock is down 4.3% since reporting and currently trades at $81.65.
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
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