Earnings Preview: Agco Corp.

Feb. 7.08 | About: AGCO Corporation (AGCO)

Agco Corp. (NYSE:AG) is expected to report Q4 earnings Thursday with a conference call scheduled for 10:00 am ET.

Guidance

Analysts are looking for Agco to post a Q4 EPS of 63c, and revenue of $1.91B. The consensus range is 51c to 78c for EPS, and revenue range of $1.83B to $2.01B, according to First Call. Agco gave guidance in October, expecting 2007 EPS of $2.10 to $2.20 vs. consensus $1.76, and 2007 revenues up 20% vs. 2006.

Analyst analysis

Goldman Sachs rated the company Neutral, citing valuation and execution risk. Stifel Nicolaus & Co. downgraded Agco to Hold from Buy, based on valuation. Morgan Stanley upgraded Agco to Equal Weight from Underweight, due to a lack of recession exposure. Bear Stearns rated Agco Outperform because of their agricultural equipment and the belief that corn planting will be strong this year, and that farm cash receipts will be strong over the next couple of years.