Spotting Winners: Lindsay (NYSE:LNN) And Agricultural Machinery Stocks In Q3
Looking back on agricultural machinery stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Lindsay (NYSE:LNN) 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 slower Q3. As a group, revenues missed analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 11.1% below.
Thankfully, share prices of the companies have been resilient as they are up 7.4% on average since the latest earnings results.
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 $155 million, down 7.3% year on year. This print exceeded analysts’ expectations by 6.5%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.
“While agricultural markets globally remain challenged due to lower grain prices and grower profitability, I am pleased with the demonstrated resilience and performance of our North America irrigation business. Equipment sales volume in both the fourth quarter and full year grew versus the prior year periods and operating performance also improved. International irrigation results continue to be impacted by lower sales activity in Brazil, following record fourth quarter and full-year sales levels last year. During the fourth quarter we began delivery on the previously announced irrigation project in the MENA region, which helped to offset some of the market softness in Brazil,” said Randy Wood, President and Chief Executive Officer of Lindsay Corporation.
Lindsay Total Revenue
Lindsay pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 13.7% since reporting and currently trades at $129.72.
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 an impressive beat of analysts’ EBITDA estimates.
Deere Total Revenue
The market seems happy with the results as the stock is up 9.5% since reporting. It currently trades at $443.70.
With a history that features both organic growth and acquisitions, AGCO (NYSE:AGCO) designs, manufactures, and sells agricultural machinery and related technology.
AGCO Corporation reported revenues of $2.60 billion, down 24.8% year on year, falling short of analysts’ expectations by 10.4%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations significantly.
AGCO Corporation delivered the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. The stock is flat since the results and currently trades at $97.95.
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. This print came in 5% below analysts' expectations. Overall, it was a disappointing quarter as it also recorded full-year EBITDA guidance missing analysts’ expectations.
Titan International delivered the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is down 1.8% since reporting and currently trades at $7.23.
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 lagged analysts' expectations by 0.7%. It was a softer quarter as it also recorded a miss of analysts’ EPS estimates.
The stock is up 15.6% since reporting and currently trades at $196.09.
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% in November), 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 potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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