AGCO Corp. (NYSE: AGCO) reported Q1 EPS of $0.35, $0.21 better than the analyst estimate of $0.14. Revenue for the quarter came in at $2.01 billion versus the consensus estimate of $1.85 billion.

“AGCO capitalized on strengthening industry demand and delivered solid results in the first quarter,” stated Martin Richenhagen, Chairman, President and Chief Executive Officer. “Improved market demand in North America and healthy industry conditions in Western Europe supported sales and margin improvement in those regions resulting in better than expected sales and earnings growth for the Company. Our weak results in South America reflect the challenging industry environment and lower levels of production, as well as the transition costs associated with localizing newer product technology into our Brazilian factories. While our focus on cost management to mitigate market pressures continues, we are maintaining a strong level of investment in new products and technologies, as demonstrated by an increase in engineering expenses in 2018 over 2017, both in the first quarter, and the total planned for the full year.”

GUIDANCE:

AGCO Corp. sees FY2018 EPS of $3.70, versus the consensus of $3.73. AGCO’s net sales for 2018 are expected to reach $9.3 billion reflecting improved sales volumes, positive pricing as well as acquisition and foreign exchange impacts, versus the consensus of $9.14 billion.

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