What To Expect From Farmer Mac’s (AGM) Q1 Earnings

Agricultural finance company Farmer Mac (NYSE:AGM) will be announcing earnings results this Tuesday afternoon. Here’s what to expect.

Farmer Mac missed analysts’ revenue expectations last quarter, reporting revenues of $92.3 million, down 5.8% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.

Is Farmer Mac a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Farmer Mac’s revenue to grow 21.6% year on year, a reversal from the 3.3% decrease it recorded in the same quarter last year.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Farmer Mac has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Farmer Mac’s peers in the financial services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. PROG delivered year-on-year revenue growth of 11.1%, meeting analysts’ expectations, and Euronet Worldwide reported revenues up 10.5%, topping estimates by 4.3%. PROG traded up 24.1% following the results while Euronet Worldwide was down 4.4%.

Read our full analysis of PROG’s results here and Euronet Worldwide’s results here.

There has been positive sentiment among investors in the financial services segment, with share prices up 8.8% on average over the last month. Farmer Mac is up 14.8% during the same time and is heading into earnings with an average analyst price target of $215.33 (compared to the current share price of $174.81).

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