What Happened?
Shares of agricultural and farm machinery company AGCO (NYSE: AGCO) fell 3% in the afternoon session after it reported mixed third-quarter results, with a significant drop in revenue and a steep sales decline in North America overshadowing an earnings beat. For the quarter, revenue fell 4.7% to $2.48 billion compared to the same period in the previous year. This top-line weakness seemed to overshadow the fact that adjusted earnings per share of $1.35 beat analysts' expectations. A key point of concern for investors was the performance in North America, where sales plunged 32.1%. The company's CEO noted the business was navigating a complex landscape with challenging farm economics and high interest rates. While AGCO increased its full-year adjusted earnings per share outlook to around $5.00 and announced a new $300 million share repurchase plan, the market appeared to focus more on the sharp sales contraction in a critical region and the company's full-year revenue guidance, which was slightly below estimates.
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What Is The Market Telling Us
AGCO’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 11.3% on the news that the company reported second-quarter results that topped Wall Street forecasts and raised its full-year financial outlook. The company posted adjusted earnings of $1.35 per share, surpassing analyst estimates. Revenue landed at $2.6 billion, also beating expectations, even though it represented a decrease from the prior year. Management noted they achieved these results despite a challenging global environment for agriculture. Looking forward, the company lifted its full-year guidance, projecting earnings per share between $4.75 and $5.00. This positive news pushed the stock to a new 52-week high during the trading session.
AGCO is up 12.7% since the beginning of the year, but at $102.95 per share, it is still trading 12.7% below its 52-week high of $117.97 from July 2025. Investors who bought $1,000 worth of AGCO’s shares 5 years ago would now be looking at an investment worth $1,285.
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