A Look Back at Agricultural Machinery Stocks' Q4 Earnings: The Toro Company (NYSE:TTC) Vs The Rest Of The Pack

Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at The Toro Company (NYSE:TTC) 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 6 agricultural machinery stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 0.6% above.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.5% since the latest earnings results.

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 $1.04 billion, up 4.2% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is down 1.3% since reporting and currently trades at $99.45.

Is now the time to buy The Toro Company? Access our full analysis of the earnings results here, it’s free.

Best Q4: 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 $9.61 billion, up 13% year on year, outperforming analysts’ expectations by 5.9%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

Deere delivered the fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $589.09.

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

Weakest Q4: 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 $373.7 million, down 3% year on year, falling short of analysts’ expectations by 7.8%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates.

Alamo delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 23% since the results and currently trades at $168.16.

Read our full analysis of Alamo’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 $2.92 billion, up 1.1% year on year. This result beat analysts’ expectations by 9.6%. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

AGCO achieved the biggest analyst estimates beat but had the weakest full-year guidance update among its peers. The stock is flat since reporting and currently trades at $122.15.

Read our full, actionable report on AGCO here, it’s free.

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 $155.8 million, down 6.3% year on year. This number missed analysts’ expectations by 7%. Overall, it was a slower quarter as it also recorded a significant miss of analysts’ revenue estimates.

Lindsay had the slowest revenue growth among its peers. The stock is up 9.1% since reporting and currently trades at $129.37.

Read our full, actionable report on Lindsay here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.