Loading...
•
Mar 31, 2023
AGCO Q1 2023 Earnings Report
AGCO delivered robust sales growth and margin expansion in the first quarter as healthy farm economics continued to support elevated global demand.
Key Takeaways
AGCO reported record first quarter net sales of $3.3 billion, up 24% year-over-year. Record first quarter operating margin of 11.6%. The company raises full year sales, operating margin and earnings per share outlook. They also announced $5.00 per share special variable dividend and raised quarterly dividend 21%.
Record first quarter net sales of $3.3 billion, up 24% year-over-year
Record first quarter operating margin of 11.6%
Raises full year sales, operating margin and earnings per share outlook
Announced $5.00 per share special variable dividend and raised quarterly dividend 21%
AGCO
AGCO
AGCO Revenue by Geographic Location
Revenue by Geographic Location
North America Revenue
CapyFin.comSouth America Revenue
CapyFin.comEurope/Middle East Revenue
CapyFin.comAsia/Pacific/Africa Revenue
CapyFin.com Forward Guidance
AGCO’s net sales for 2023 are expected to be approximately $14.5 billion, reflecting improved sales volumes and pricing. Gross and operating margins are projected to improve from 2022 levels, reflecting the impact of higher sales and production volumes as well as pricing. Based on these assumptions, 2023 earnings per share are targeted at approximately $14.40.
Positive Outlook
- Improved sales volumes
- Improved pricing
- Gross margins are projected to improve from 2022 levels
- Operating margins are projected to improve from 2022 levels
- Increased engineering and other technology investments to support AGCO’s precision agriculture and digital initiatives
Challenges Ahead
- COVID-19 has negatively impacted our business
- We cannot predict or control the impact of the conflict in Ukraine on our business
- Our financial results depend entirely upon the agricultural industry
- We have experienced substantial and sustained volatility with respect to currency exchange rate and interest rate changes, which can adversely affect our reported results of operations and the competitiveness of our products.
- Our business increasingly is subject to regulations relating to privacy and data protection, and if we violate any of those regulations, or otherwise are the victim of a cyberattack, we could be subject to significant claims, penalties and damages.
Revenue & Expenses
Visualization of income flow from segment revenue to net income