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With a market cap of $106.5 billion, Deere & Company (DE) is a leading manufacturer of agricultural, turf, construction, and forestry equipment, offering innovative technology solutions and financial services. Based in Moline, Illinois, the company is expected to release its fiscal Q3 earnings results before the market opens on Thursday, Aug. 15.
Ahead of this event, analysts project the agriculture equipment manufacturer to report a profit of $5.85 per share, down 42.7% from $10.20 per share in the year-ago quarter. However, the company has consistently surpassed Wall Street's bottom-line estimates in each of the last four quarterly reports. DE posted an EPS of $8.53 in Q2 2024, surpassing the consensus estimate by 8.5%.
For fiscal 2024, analysts forecast DE to report EPS of $25.41, down 26.6% from $34.63 in fiscal 2023.
DE has declined 10.7% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 19.5% gain and the S&P 500 Industrial Sector SPDR's (XLI) 14.4% increase over the same period.
Shares of DE declined 4.7% on May 16 after the company lowered its annual profit forecast, projected a steeper decline in large agriculture equipment sales, and revised its fiscal 2024 net income expectations downward to about $7 billion due to falling crop prices, reduced farm income, and higher interest rates. Despite topping Q2 estimates with net income of $2.37 billion and net sales of $13.61 billion, the negative outlook contributed to the market's reaction.
Overall, analysts' consensus view on Deere & Company stock is cautiously optimistic, with a "Moderate Buy" rating. Out of 22 analysts covering the stock, 11 give a "Strong Buy," two have a "Moderate Buy" rating, and nine give a "Hold" rating.
The above consensus is slightly less bullish than a month ago, with 12 “Strong Buy” ratings. The average analyst price target for DE is $423.25, suggesting a potential upside of 9.5% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
