Market Overview

AGCO's Earnings: A Preview


AGCO (NYSE: AGCO) announces its next round of earnings this Tuesday, November 03. Here is Benzinga's everything-that-matters guide for this Tuesday's Q3 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

AGCO earnings will be near $0.97 per share on sales of $2.13 billion, according to analysts. In the same quarter last year, AGCO reported EPS of $0.82 on revenue of $2.11 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Tuesday, EPS would be up 18.29%. Revenue would be up 1.0% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.08 0.42 1.55 0.78
EPS Actual 1.11 0.86 0.94 0.82
Revenue Estimate 1.80 B 1.86 B 2.67 B 2.21 B
Revenue Actual 2.01 B 1.93 B 2.51 B 2.11 B

Stock Performance

Shares of AGCO were trading at $77 as of October 29. Over the last 52-week period, shares are down 2.94%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. AGCO is scheduled to hold the call at 10:00:00 ET and can be accessed here.


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Posted-In: Earnings