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Shares of AGCO Corp. AGCO have gained 11% since it surpassed both top and bottom line estimates on May 1. The company delivered an adjusted EPS of 41 cents in first-quarter 2025 compared with the prior-year quarter’s $2.32. The reported figure topped the Zacks Consensus Estimate of 3 cents.
Including one-time items, AGCO posted an EPS of 14 cents compared with the year-ago quarter’s $2.25.
Net sales decreased 30% year over year to $2.05 billion in the March-end quarter. The top line beat the Zacks Consensus Estimate of $2.02 billion. Excluding the unfavorable currency-translation impacts of 2.4%, net sales fell 27.6% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
AGCO Corporation Price, Consensus and EPS Surprise
AGCO Corporation price-consensus-eps-surprise-chart | AGCO Corporation Quote
AGCO Corp’s Q1 Margins Down Y/Y
Cost of sales decreased 29.1% year over year to $1.53 billion in the first quarter. Gross profit decreased 32.4% year over year to $521 million in the reported quarter. The gross margin was 25.4% compared with the prior-year quarter’s 26.3%.
Selling, general and administrative expenses were $326 million compared with the year-ago quarter’s $350 million. Adjusted income from operations fell 70.3% year over year to $83 million. The operating margin was 4.1% compared with the year-earlier quarter’s 9.6%
AGCO’s Q1 Segmental Performance
Sales in the North America segment moved down 34.2% year over year to $396 million in the first quarter. The reported figure missed our estimate of $422 million. The segment reported an operating loss of $19.8 million against the prior-year quarter’s operating profit $28.4 million. Our projection for the segment’s operating income was $13.4 million. The decline was due to lower sales and production volumes.
Sales in the South America segment decreased 15.8% year over year to $230 million. We expected the segment’s net sales to be $136 million. The segment reported an operating income of $2 million compared with the prior-year quarter’s $12 million. Our estimate for the segment's operating income was $7.5 million. The downside was driven by lower sales, lower production volumes and negative pricing.
The EME (Europe/Middle East) segment’s sales were $1.33 billion compared with $1.71 billion in the year-ago period driven by lower sales and production volumes. The reported figure beat our estimate of $1.32 billion. EME’s operating income was $154 million compared with the year-ago quarter’s $295 million. We predicted EME’s operating income to be $76 million.
Sales in the Asia/Pacific segment were down 36% year over year to $94.5 million. We expected the segment’s sales to be $111 million. The segment reported an operating loss of $2.7 million against the prior-year quarter’s operating profit of $9 million. Our projection for the segment’s operating profit was $3.8 million.