05:37 PM EDT, 04/29/2024 (MT Newswires) -- Ag Growth International ( AGGZF ) , which saw its shares gain 2.2% on Monday, may come under some selling pressure on Tuesday as it reported after the bell today weaker than expected first-quarter revenue.
The agricultural-equipment manufacturer reported first-quarter revenues of C$315 million, down by 9% on a year-over-year basis and missing a Capital IQ forecast of C$357.55 million by a wide margin.
It did not disclose profit or loss results for the quarter.
Ag Growth ( AGGZF ) reaffirmed its previously stated adjusted EBITDA guidance for 2024 of at least C$310 million. But the equivalent Capital IQ forecast for the year is C$313 million.
On the positive side, Ag Growth's ( AGGZF ) order book was up 12% year to year to C$729 million as of March 31, with strength in the international regions of the its commercial segment. But, the company said, "While our overall outlook for the full year has not changed, we have observed a trend in commercial project timing which has further shifted expected deliveries into the second half of the year. As a result, we expect all of the full year 2024 Adjusted EBITDA growth over 2023 to occur in the second half of 2024, with first half 2024 Adjusted EBITDA results generally expected to be down relative to first half 2023."
The company did say first quarter adjusted EBITDA of $50 million increased by 4% on a YOY basis, while adjusted EBITDA margin increased by roughly 200 basis points to 15.9% from 13.9% on a YOY basis.
"We are encouraged by our first quarter results which are largely on-track with how we expected the year to begin given our order book mix," said chief executive Paul Householder in a statement. "The increase in first quarter adjusted EBITDA, driven by favourable margins, reinforces our confidence that AGI's profitability levels have structurally expanded. With high activity levels across most areas of the company, we are closely monitoring the North American Farm segment where pockets of cautious purchasing behaviour existed through the first quarter and will impact second quarter Farm segment results."
He added: "Overall, we remain confident in our full year outlook and reaffirm our 2024 Adjusted EBITDA guidance of at least $310 million given the support of a near-record level order book and strong Commercial activity internationally."
AG Growth ( AGGZF ) shares closed up C$1.30 to C$61.39 on the Toronto Stock Exchange.