Agco Earnings: Slower Ag Demand Leads Management to Lower Sales Guidance for 2024

Agco reported first-quarter earnings slightly below our expectations. Our fair value estimate decreased 1% to $139, down from $141. The decline was largely due to slight tweaks in our near-term sales and margin expectations. For 2024, we’re forecasting sales to decline by 6% year on year (including Trimble). On profitability, we expect adjusted operating margins to decline by 60 basis points to 11.3%.