Stock Story -
Agricultural and construction machinery company Deere (NYSE:DE) will be reporting earnings tomorrow morning. Here’s what investors should know.
Deere beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $13.61 billion, down 15.4% year on year. It was a very strong quarter for the company, with a decent beat of analysts’ revenue and earnings estimates.
Is Deere a buy or sell going into earnings? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts are expecting Deere’s revenue to decline 24.4% year on year to $10.79 billion, a reversal from the 9.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.79 per share.
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. Deere has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.1% on average.
Looking at Deere’s peers in the agricultural machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Titan International delivered year-on-year revenue growth of 10.6%, missing analysts’ expectations by 2.8%, and AGCO Corporation reported a revenue decline of 15.1%, falling short of estimates by 6.8%. Titan International’s stock price was unchanged after the results, while AGCO Corporation was down 7.6%.
Read the full analysis of Titan International’s and AGCO Corporation’s results on StockStory.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the agricultural machinery stocks have fared somewhat better, they have not been spared, with share prices down 8.3% on average over the last month. Deere is down 7.2% during the same time and is heading into earnings with an average analyst price target of $415.4 (compared to the current share price of $350.51).
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