AGCO Corporation (NYSE:AGCO) Just Released Its Yearly Earnings: Here's What Analysts Think

As you might know, AGCO Corporation (NYSE:AGCO) last week released its latest yearly, and things did not turn out so great for shareholders. It was a pretty negative result overall, with revenues of US$12b missing analyst predictions by 2.3%. Worse, the business reported a statutory loss of US$5.69 per share, much larger than the analysts had forecast prior to the result. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for AGCO

After the latest results, the consensus from AGCO's 13 analysts is for revenues of US$9.59b in 2025, which would reflect an uneasy 18% decline in revenue compared to the last year of performance. AGCO is also expected to turn profitable, with statutory earnings of US$3.84 per share. In the lead-up to this report, the analysts had been modelling revenues of US$9.62b and earnings per share (EPS) of US$3.92 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$105, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic AGCO analyst has a price target of US$125 per share, while the most pessimistic values it at US$92.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 18% by the end of 2025. This indicates a significant reduction from annual growth of 9.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.1% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - AGCO is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for AGCO going out to 2027, and you can see them free on our platform here..

Even so, be aware that AGCO is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.