AGCO Corporation Shares Tumble Following Updated Outlook
Shares of AGCO Corporation (NYSE: AGCO) were trading lower by 8 percent Tuesday following the company's revised outlook for the third quarter and full year fiscal 2014.
AGCO, a worldwide manufacturer and distributor of agricultural equipment, announced on Tuesday morning that it expects its third quarter net income per share to be in a range of $0.60 to $0.65, below the consensus estimate of $0.81. AGCO expects its full year fiscal 2014 net income per share to be in a range of $4.10 to $4.30, also falling below the consensus estimate of $4.82.
"During the third quarter, we experienced weaker than anticipated levels of demand and are responding by making more aggressive cuts in production schedule and expenses," AGCO's Chief Executive Officer Martin Richenhagen said in a statement.
The agricultural sector continues to be on close watch. On October 2, fertilizer producer Agrium announced weak guidance for the second half of fiscal 2014. CNBC's Jim Cramer noted at that that that the agricultural sector could see "widespread selling."
"People sell first and ask questions later," Cramer said. "I think people are going to say, ‘Oh, Agrium. Farm complex. Let's sell Monsanto. Let's sell Syngenta. Let's sell AGCO. Let's sell Potash. Let's sell Mosaic."
Shares of AGCO were trading lower by more than ten percent in the pre-market but slightly recovered, recently trading at $43.00, down 8.7 percent.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.