Agricultural and construction machinery company Deere (NYSE: DE) will be announcing earnings results this Thursday before market hours. Here’s what to look for.
Deere beat analysts’ revenue expectations last quarter, reporting revenues of $13.37 billion, up 4.7% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates.
Is Deere 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 Deere’s revenue to grow 3.5% year on year, a reversal from the 8.6% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Deere rarely misses Wall Street’s revenue estimates.
Looking at Deere’s peers in the heavy machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Alamo delivered year-on-year revenue growth of 7.6%, beating analysts’ expectations by 3%, and AGCO reported flat revenue, falling short of estimates by 4.9%. Alamo traded up 3.9% following the results while AGCO was down 12.1%.
Read our full analysis of Alamo’s results here and AGCO’s results here.
Investors in the heavy machinery segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. Deere’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $646.75 (compared to the current share price of $591.00).
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