Q3 Earnings Highlights: Alamo (NYSE:ALG) Vs The Rest Of The Agricultural Machinery Stocks

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Alamo (NYSE:ALG) and the best and worst performers in the agricultural machinery industry.

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 mixed Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

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. This print exceeded analysts’ expectations by 3.1%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EBITDA end EPS estimates.

Robert Hureau, Alamo Group's President and Chief Executive Officer commented, "The Company's third quarter results were mixed. The Industrial Equipment Division continued to perform exceptionally well, delivering strong year-over-year double digit net sales growth for the seventh consecutive quarter. While Industrial Equipment orders fluctuate from quarter to quarter, year-to-date bookings in the division reflect modest growth and backlog levels remain healthy. In contrast, the Vegetation Management Division continued to experience softness in its end markets, however, bookings in the division slightly improved. Operationally, in the Vegetation Management Division we have consolidated facilities in an effort to reduce fixed costs and improve manufacturing throughput and materials management. To date, we have realized the fixed cost savings. While productivity improvements are tracking more slowly than anticipated, we are advancing our operational initiatives and expect further benefits in the coming quarters."

Alamo pulled off the biggest analyst estimates beat of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $172.23.

Read our full report on Alamo 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 estimates and a solid beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.2% since reporting. It currently trades at $7.62.

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

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, exceeding analysts’ expectations by 1.6%. Still, it was a slower quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

As expected, the stock is down 2.2% since the results and currently trades at $119.95.

Read our full analysis of Lindsay’s results here.

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 lagged analysts' expectations by 0.5%. Aside from that, it was a mixed quarter as it also recorded 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 flat since reporting and currently trades at $105.77.

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

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 $1.07 billion, flat year on year. This result beat analysts’ expectations by 2%. More broadly, it was a mixed quarter as it also produced a solid beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations significantly.

The stock is up 8% since reporting and currently trades at $78.47.

Read our full, actionable report on The Toro Company 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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