Agricultural Machinery Stocks Q3 In Review: Deere (NYSE:DE) Vs Peers

Looking back on agricultural machinery stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Deere (NYSE:DE) and its peers.

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 5 agricultural machinery stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 1.1% on average since the latest earnings results.

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 $10.58 billion, up 14.1% year on year. This print fell short of analysts’ expectations by 9%, but it was still a strong quarter for the company with an impressive beat of analysts’ EBITDA and Construction & Forestry revenue estimates.

Deere scored the fastest revenue growth but had the weakest performance against analyst estimates of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 2% since reporting and currently trades at $488.25.

Is now the time to buy Deere? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: 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 $466.5 million, up 4.1% year on year, outperforming analysts’ expectations by 1.7%. The business had a strong quarter with a beat of analysts’ EPS and EBITDA estimates.

The market seems content with the results as the stock is up 3% since reporting. It currently trades at $8.19.

Is now the time to buy Titan International? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: 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 $420 million, up 4.7% year on year, exceeding analysts’ expectations by 3.1%. Still, it was a slower quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 2.9% since the results and currently trades at $178.15.

Read our full analysis of Alamo’s results here.

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 $153.6 million, flat year on year. This result surpassed analysts’ expectations by 1.6%. Aside from that, it was a slower quarter as it produced a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

The stock is flat since reporting and currently trades at $121.99.

Read our full, actionable report on Lindsay here, it’s free for active Edge members.

AGCO (NYSE:AGCO)

With a history that features both organic growth and acquisitions, AGCO (NYSE:AGCO) designs, manufactures, and sells agricultural machinery and related technology.

AGCO reported revenues of $2.48 billion, down 4.7% year on year. This number came in 0.5% below analysts' expectations. Taking a step back, it was a mixed quarter as it also logged full-year EPS guidance exceeding analysts’ expectations but a significant miss of analysts’ organic revenue estimates.

AGCO had the slowest revenue growth among its peers. The stock is up 2.1% since reporting and currently trades at $108.34.

Read our full, actionable report on AGCO here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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