AGCO Beats on Both Top and Bottom Lines

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AGCO (NYS: AGCO) reported earnings on July 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), AGCO beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew.


Gross margins increased, operating margins grew, net margins dropped.

Revenue details
AGCO reported revenue of $3.05 billion. The 13 analysts polled by S&P Capital IQ looked for sales of $2.83 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $2.69 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
EPS came in at $2.15. The 14 earnings estimates compiled by S&P Capital IQ predicted $1.81 per share. GAAP EPS of $2.15 for Q2 were 3.4% higher than the prior-year quarter's $2.08 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Margin details
For the quarter, gross margin was 23.3%, 60 basis points better than the prior-year quarter. Operating margin was 10.7%, 90 basis points better than the prior-year quarter. Net margin was 7.0%, 60 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $2.45 billion. On the bottom line, the average EPS estimate is $1.19.

Next year's average estimate for revenue is $10.53 billion. The average EPS estimate is $5.64.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 312 members out of 333 rating the stock outperform, and 21 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give AGCO a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AGCO is outperform, with an average price target of $59.73.

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The article AGCO Beats on Both Top and Bottom Lines originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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