Let’s dig into the relative performance of The Toro Company (NYSE: TTC) and its peers as we unravel the now-completed Q1 agricultural machinery earnings season.
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 strong Q1. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 2.1% below.
Luckily, agricultural machinery stocks have performed well with share prices up 11% on average since the latest earnings results.
Weakest Q1: 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 $1.32 billion, down 2.3% year on year. This print fell short of analysts’ expectations by 2.3%. Overall, it was a softer quarter for the company with a miss of analysts’ Professional revenue estimates and full-year EPS guidance missing analysts’ expectations.
“Our second-quarter results demonstrate the resilience and agility of The Toro Company and commitment of our dedicated employees and channel partners to deliver innovative solutions and exceptional service to meet our customers’ needs,” said Richard M. Olson, chairman and chief executive officer.
Unsurprisingly, the stock is down 8.3% since reporting and currently trades at $69.30.
Read our full report on The Toro Company here, it’s free.
Best Q1: 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 $187.1 million, up 23.5% year on year, outperforming analysts’ expectations by 4%. The business had an incredible quarter with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EPS estimates.
Lindsay pulled off the fastest revenue growth among its peers. The market seems content with the results as the stock is up 3.7% since reporting. It currently trades at $134.85.
Is now the time to buy Lindsay? Access our full analysis of the earnings results here, it’s free.
Titan International (NYSE: TWI)
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 $490.7 million, up 1.8% year on year, exceeding analysts’ expectations by 5.7%. It was a satisfactory quarter as it also posted a solid beat of analysts’ EBITDA estimates.
Interestingly, the stock is up 23.8% since the results and currently trades at $9.06.
Read our full analysis of Titan International’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 $2.05 billion, down 30% year on year. This result topped analysts’ expectations by 1.8%. Overall, it was an exceptional quarter as it also recorded an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
AGCO had the slowest revenue growth among its peers. The stock is up 21% since reporting and currently trades at $102.52.
Read our full, actionable report on AGCO 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 $391 million, down 8.1% year on year. This print was in line with analysts’ expectations. It was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.
The stock is up 20.4% since reporting and currently trades at $215.04.
Read our full, actionable report on Alamo here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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