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Dec 31, 2020
AGCO Q4 2020 Earnings Report
AGCO reported strong operational results, leveraging improving markets to produce sales and earnings growth.
Key Takeaways
AGCO reported net sales of approximately $2.7 billion for the fourth quarter of 2020, an increase of approximately 8.1% compared to the fourth quarter of 2019. Reported net income was $1.78 per share for the fourth quarter of 2020, and adjusted net income was $1.54 per share.
Europe/Middle East (“EME”) sales increased 13.7%.
North America sales decreased 10.2%.
South America sales increased 21.1%.
Asia/Pacific/Africa (“APA”) sales increased 2.1%.
Revenue by Geographic Location
Forward Guidance
AGCO’s net sales for 2021 are expected to range from $10.2 billion to $10.4 billion, reflecting improved sales volumes, pricing and positive foreign currency translation. Based on these assumptions, 2021 earnings per share is targeted in a range from $7.00 to $7.25.
Positive Outlook
- Improved sales volumes.
- Pricing improvements.
- Positive foreign currency translation.
- Gross margins are projected to improve from 2020 levels.
- Operating margins are projected to improve from 2020 levels.
Challenges Ahead
- Potential sales disruptions caused by the COVID-19 pandemic.
- Potential production disruptions caused by the COVID-19 pandemic.
- Increased engineering investments to support precision agriculture.
- Increased technology investments to support precision agriculture.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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