JamieCook,CFAThemisDavrisKevinWilsonAlexanderKhanResearchAnalystResearchAnalystResearchAnalystResearchAnalyst212-538-6098+442078881060212-325-5079212-325-7714jamie.cook@csg.comthemis.davris@csg.comkevin.wilson@csg.comalexander.khan@csg.comDISCLOSUREAPPENDIXATTHEBACKOFTHISREPORTCONTAINSIMPORTANTDISCLOSURES,ANALYSTCERTIFICATIONS,LEGALENTITYDISCLOSUREANDTHESTATUSOFNON-USANALYSTS.USDisclosure:CreditSuissedoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethattheFirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.WHAT’SCOOKIN’INMACHINERYANDENGINEERING&CONSTRUCTIONEARNINGTHEHARDWAYCATALYSTWATCH5/7GTESQ1’19(Q1:$0.28;FY19:$1.24)5/7JECQ2’19(Q2:$1.09;FY19:$4.58)5/7BrazilTractorData5/7BrazilTruckData5/8ACMQ2’19(Q2:$0.63;FY19:$2.75)5/8EIAPetroleumStatusReport5/9MTWQ1’19(Q1:$0.00;FY19:$1.27)5/9-10(est.)USTractorData5/9-10(est.)GermanTractorData5/10WASDE5/10BakerHughesRigCountWHAT’SHOTANDWHAT’SNOTMachinery:TheMachinerygrouplargelydeclinedthisweek,whileCMIandAGCOoutperformedthegroupfollowingearnings.CMIroseafterbeatingQ1'19consensusestimatesby11%onabettertoplineandmarginprintandraisingFY’19estimatesonanimprovedmarginoutlook.Theimprovedmarginforecastwaslargelydrivenbygoodexecutionandlowermaterialcosts.However,CMIdiddisclosethecompanyisreviewingitsemissionscertificationandcomplianceprocessforitspickuptruckapplications,specificallythe2019DodgeRam2500and3500.CMIdoesnotassumeanypotentialimpactfromthereviewoftheemissionscertificationprocessandcomplianceinitsforecast,whichwilllikelybeaslightoverhangonthestock.Additionally,AGCO’sstockjumpedafterthecompanymorethandoubledQ1streetestimates($0.86inadj.EPSvs.streetat$0.42)andraiseditsFYadj.EPSoutlookby$0.30.WethinkthebeatandthestockperformancewasmostlytiedtoperformanceinEMEwhichisAGCO’shighestmarginsegment.Meanwhile,PHandCATweredownontheweek,followingPHannouncingtheacquisitionofLORD...
