Let’s dig into the relative performance of Deere (NYSE: DE) and its peers as we unravel the now-completed Q2 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 satisfactory Q2. As a group, revenues missed analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.1% since the latest earnings results.
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 $10.36 billion, down 9% year on year. This print fell short of analysts’ expectations by 11.8%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates.
Deere delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 8.5% since reporting and currently trades at $469.50.
Is now the time to buy Deere? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $169.5 million, up 21.7% year on year, outperforming analysts’ expectations by 4.6%. The business had an incredible quarter with an impressive beat of analysts’ organic revenue and EPS estimates.
Lindsay scored the fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $137.71.
Is now the time to buy Lindsay? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $1.13 billion, down 2.2% year on year, falling short of analysts’ expectations by 2.2%. It was a softer quarter as it posted and full-year EPS guidance missing analysts’ expectations.
As expected, the stock is down 5.2% since the results and currently trades at $76.45.
Read our full analysis of The Toro Company’s results here.
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 $419.1 million, flat year on year. This result topped analysts’ expectations by 2.4%. It was a strong quarter as it also produced a solid beat of analysts’ EBITDA estimates.
The stock is down 13.7% since reporting and currently trades at $194.11.
Read our full, actionable report on Alamo here, it’s free.
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 $2.64 billion, down 18.8% year on year. This number surpassed analysts’ expectations by 5.9%. It was an exceptional quarter as it also logged a beat of analysts’ EPS and EBITDA estimates.
AGCO delivered the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $107.26.
Read our full, actionable report on AGCO here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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