• AGCO Corp (AGCO) reported net sales growth of 24% year over year to $3.33 billion in the first quarter of fiscal 23, beat the consensus of $3.16 billion.
  • Adjusted earnings per share improved to $3.51 from $2.39, beating the consensus of $2.70.
  • The company’s solid operational performance, continued pricing action and a stabilizing supply chain supported first quarter results.
  • Regional Sales: Europe/Middle East +21.4% y/y, North America +31.7% y/y, South America +41.4% y/y, Asia/Pacific/Africa (-9.9% y/y).
  • Gross margin increased 210 basis points to 25.6%.
  • AGCO had cash and cash equivalents of $558.7 million at the end of the quarter.
  • On April 27, the company announced a special variable dividend of $5 per share and increased the quarterly dividend by 21% to $0.29 per share. both payable in June.
  • Outlook for FY23: AGCO expects net sales of approximately $14.5 billion (consensus $14.06 billion), reflecting improved sales volumes and prices. The company had previously expected sales of $14 billion.
  • The company is targeting earnings per share of ~$14.40, ahead of the consensus of $13.60. The company had previously expected adjusted earnings per share of $13.50.
  • Price promotion: AGCO shares are trading up 1.99% at $127.11 on the latest check Tuesday.

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