The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how agricultural machinery stocks fared in Q1, starting with Alamo (NYSE: ALG).
Agricultural machinery companies are investing to develop and produce more precise machinery, automated systems, and connected equipment that collects analyzable data to help farmers and other customers improve yields and increase efficiency. On the other hand, agriculture is seasonal and natural disasters or bad weather can impact the entire industry. Additionally, macroeconomic factors such as commodity prices or changes in interest rates–which dictate the willingness of these companies or their customers to invest–can impact demand for agricultural machinery.
The 6 agricultural machinery stocks we track reported a strong Q1. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 2.1% below.
Luckily, agricultural machinery stocks have performed well with share prices up 10.9% on average since the latest earnings results.
Alamo (NYSE: ALG)
Expanding its markets through acquisitions since its founding, Alamo (NSYE:ALG) designs, manufactures, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural use.
Alamo reported revenues of $391 million, down 8.1% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.
Jeff Leonard, Alamo Group's President and Chief Executive Officer commented, "The Company's first quarter results reflected another strong performance from our Industrial Equipment Division and notable performance improvement in our Vegetation Management Division.
Interestingly, the stock is up 21.5% since reporting and currently trades at $217.
Is now the time to buy Alamo? Access our full analysis of the earnings results here, it’s free.
Best Q1: Lindsay (NYSE: LNN)
A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE: LNN) provides a variety of proprietary water management and road infrastructure products and services.
Lindsay reported revenues of $187.1 million, up 23.5% year on year, outperforming analysts’ expectations by 4%. The business had an incredible quarter with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EPS estimates.
Lindsay achieved the fastest revenue growth among its peers. The market seems content with the results as the stock is up 3.9% since reporting. It currently trades at $135.13.
Is now the time to buy Lindsay? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: The Toro Company (NYSE: TTC)
Ceasing all production to support the war effort during World War II, Toro (NYSE: TTC) offers outdoor equipment for residential, commercial, and agricultural use.
The Toro Company reported revenues of $1.32 billion, down 2.3% year on year, falling short of analysts’ expectations by 2.3%. It was a softer quarter as it posted a miss of analysts’ Professional revenue estimates and full-year EPS guidance missing analysts’ expectations.
As expected, the stock is down 8.5% since the results and currently trades at $69.15.
Read our full analysis of The Toro Company’s results here.
Titan International (NYSE: TWI)
Acquiring Goodyear’s farm tire business in 2005, Titan (NSYE:TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles.
Titan International reported revenues of $490.7 million, up 1.8% year on year. This number beat analysts’ expectations by 5.7%. Zooming out, it was a satisfactory quarter as it also logged an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates.
Titan International achieved the biggest analyst estimates beat among its peers. The stock is up 23.4% since reporting and currently trades at $9.03.
Read our full, actionable report on Titan International here, it’s free.
Deere (NYSE: DE)
Revolutionizing agriculture with the first self-polishing cast-steel plow in the 1800s, Deere (NYSE: DE) manufactures and distributes advanced agricultural, construction, forestry, and turf care equipment.
Deere reported revenues of $11.17 billion, down 17.9% year on year. This result lagged analysts' expectations by 9.7%. In spite of that, it was a very strong quarter as it produced an impressive beat of analysts’ EBITDA estimates.
Deere had the weakest performance against analyst estimates among its peers. The stock is up 4.8% since reporting and currently trades at $521.01.
Read our full, actionable report on Deere here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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