Agricultural and construction machinery company Deere (NYSE: DE) will be announcing earnings results tomorrow before market open. Here’s what you need to know.
Deere missed analysts’ revenue expectations by 7% last quarter, reporting revenues of $8.51 billion, down 18.9% year on year. It was a softer quarter for the company, with and a significant miss of analysts’ adjusted operating income 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 9.1% year on year to $12.37 billion, improving from the 15.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.62 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.
Looking at Deere’s peers in the agricultural machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Lindsay delivered year-on-year revenue growth of 23.5%, beating analysts’ expectations by 4%, and AGCO reported a revenue decline of 30%, topping estimates by 1.8%. Lindsay traded down 8% following the results while AGCO was up 12.2%.
Read our full analysis of Lindsay’s results here and AGCO’s results here.
There has been positive sentiment among investors in the agricultural machinery segment, with share prices up 17.2% on average over the last month. Deere is up 8.4% during the same time and is heading into earnings with an average analyst price target of $489.89 (compared to the current share price of $500).
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