AGCO Q2 2023 Earnings Report
Key Takeaways
AGCO reported record second quarter net sales of $3.8 billion, up nearly 30% year-over-year, and a record operating margin of 13%. The company raised its full-year sales, operating margin, and earnings per share outlook.
Net sales for the second quarter were approximately $3.8 billion, an increase of approximately 29.8% compared to the second quarter of 2022.
Reported net income was $4.26 per share for the second quarter of 2023, and adjusted net income was $4.29 per share.
Europe/Middle East net sales increased 35.7%, North America +34.7%, South America +15.3%, Asia/Pacific/Africa +8.2%.
AGCO’s net sales for 2023 are expected to be approximately $14.7 billion.
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AGCO Revenue by Geographic Location
Forward Guidance
AGCO’s net sales for 2023 are expected to be approximately $14.7 billion, reflecting improved sales volumes and pricing. Based on these assumptions, 2023 reported earnings per share are targeted at approximately $14.82 and adjusted earnings per share at approximately $15.25.
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
- Increases in engineering and other technology investments to support AGCO’s precision agriculture and digital initiatives.
Revenue & Expenses
Visualization of income flow from segment revenue to net income