Agricultural and construction machinery company Deere (NYSE:DE) will be reporting results tomorrow morning. Here’s what investors should know.
Deere beat analysts’ revenue expectations by 14.3% last quarter, reporting revenues of $15.24 billion, down 12.4% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
Is Deere a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Deere’s revenue to decline 16.8% year on year to $10.79 billion, a reversal from the 12% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.79 per share.
Analysts covering the company have generally 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 14.1% on average.
With Deere being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for heavy machinery stocks. However, there has been positive investor sentiment in the segment, with share prices up 4.6% on average over the last month. Deere is down 1.4% during the same time and is heading into earnings with an average analyst price target of $418.09 (compared to the current share price of $400.99).
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