AGCO Corporation AGCO shares are trading lower after the company reported worse-than-expected second-quarter financial results results and lowered its FY24 guidance.
The company reported that the second quarter adjusted earnings per share was $2.53, missing the analyst consensus of $2.90.
Quarterly sales of $3.247 billion (down 15.1% year-over-year) missed the street view of $3.482 billion.
“While we continue to successfully execute our Farmer-first strategy, second quarter results were influenced by weakening market conditions and significant production cuts aimed at reducing our Company and dealer inventories,” said Eric Hansotia, AGCO’s Chairman, President and Chief Executive Officer.
On April 1, AGCO acquired an 85% stake in PTx Trimble. AGCO began consolidating the PTx Trimble joint venture into its consolidated financial statements on April 1.
In addition, on July 25, AGCO announced the entry into a definitive agreement to sell its Grain & Protein business, which is expected to be completed prior to year-end.
AGCO’s net sales for 2024, including the positive impact of PTx Trimble, are expected to be approximately $12.5 billion (estimate: $13.13 billion), down from the prior view of $13.5 billion, reflecting lower sales volumes and adverse foreign currency translation.
The company’s 2024 adjusted earnings per share are targeted at approximately $8.00 ($10.96 estimate), down from the previous expectation of $12.00.
Price Action: AGCO shares are trading lower by 4.65% to $97.30 at last check Tuesday.
Image via Unsplash
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