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Reflecting On Agricultural Machinery Stocks’ Q4 Earnings: Alamo (NYSE:ALG)

ALG Cover Image

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how agricultural machinery stocks fared in Q4, starting with Alamo (NYSE: ALG).

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 mixed Q4. As a group, revenues missed analysts’ consensus estimates by 6.7% while next quarter’s revenue guidance was 1.9% above.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

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 $385.3 million, down 7.7% year on year. This print fell short of analysts’ expectations by 2.9%. Overall, it was a softer quarter for the company with some shareholders anticipating a better outcome.

Alamo Total Revenue

The stock is up 2.2% since reporting and currently trades at $188.01.

Read our full report on Alamo here, it’s free.

Best Q4: 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 $166.3 million, up 3.1% year on year, in line with analysts’ expectations. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates.

Lindsay Total Revenue

Lindsay achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 10.6% since reporting. It currently trades at $129.92.

Is now the time to buy Lindsay? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Deere (NYSE: DE)

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 $6.81 billion, down 35.1% year on year, falling short of analysts’ expectations by 25.6%. It was a softer quarter as it posted and a significant miss of analysts’ adjusted operating income estimates.

Deere delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 1.1% since the results and currently trades at $481.51.

Read our full analysis of Deere’s results here.

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 $383.6 million, down 1.7% year on year. This print came in 2.7% below analysts' expectations. Taking a step back, it was still a strong quarter as it produced an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is flat since reporting and currently trades at $8.73.

Read our full, actionable report on Titan International here, it’s free.

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 $995 million, flat year on year. This number missed analysts’ expectations by 1%. Aside from that, it was a satisfactory quarter as it also produced a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ Residential revenue estimates.

The stock is down 4.7% since reporting and currently trades at $74.38.

Read our full, actionable report on The Toro Company here, it’s free.


Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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