Deere & Company DE will release its second-quarter earnings results before the opening bell on Thursday, May 15. Analysts expect the Moline, Illinois-based company to report quarterly earnings at $5.64 per share, down from $8.53 per share in the year-ago period. According to data from Benzinga Pro, Deere projects quarterly revenue at $10.79 billion, compared to $13.61 billion a year earlier. On April 22, Oppenheimer analyst Kristen Owen maintained Deere with an Outperform rating and raised the price target ...

Core Viewpoint - Deere & Company is expected to report second-quarter fiscal 2025 results on May 15, with strong demand from product launches but challenges from elevated production expenses and low commodity prices impacting performance [1]. Group 1: Factors Influencing Q2 Performance - Low commodity prices and weak farmer spending have led to lower shipment volumes, negatively affecting the company's fiscal second-quarter performance [2]. - High production expenses, along with increased selling, administrative, and research and development costs, are anticipated to impact the company's margins [3]. - The company is reviewing its cost structure to improve margins, with favorable price realization expected to offset some of the higher material and freight costs [4]. Group 2: Segment Projections for Q2 - The Production & Precision Agriculture segment is projected to generate revenues of $4.61 billion, a year-over-year decrease of 23.9%, with operating profit expected to fall 62.5% to $619 million [5]. - The Small Agriculture & Turf segment's revenues are estimated at $2.78 billion, indicating a 12.6% decline, with operating profit expected to decrease by 15.1% to $485 million [6]. - The Construction & Forestry segment's sales are estimated at $3.29 billion, a 14.4% dip, with operating profit predicted to drop 12% to $588 million [7]. - The Financial Services segment is projected to have revenues of $1.48 billion, a 6.7% increase, with operating profit estimated at $232 million [8]. Group 3: Overall Q2 Expectations - The Zacks Consensus Estimate for Deere's earnings has decreased by 1.1% to $5.68 per share, implying a 33.4% decline from the previous year, with revenue expectations at $10.6 billion, a 21.7% year-over-year decline [9]. - The earnings surprise history shows that Deere has beaten the Zacks Consensus Estimates in the past four quarters, with an average surprise of 8.9% [10]. Group 4: Earnings Prediction Model - The current Earnings ESP for Deere is -0.03%, indicating that the model does not predict an earnings beat this time [11]. - Deere holds a Zacks Rank of 3, suggesting a hold position [12]. Group 5: Share Price Performance - Deere's shares have increased by 22.6% over the past year, outperforming the industry's growth of 18.5% [13].

Core Viewpoint - Analysts expect Deere (DE) to report a quarterly earnings of $5.68 per share, reflecting a year-over-year decline of 33.4%, with revenues projected at $10.65 billion, down 21.8% from the previous year [1] Revenue Estimates - The consensus estimate for 'Net Sales and Revenues- Equipment Operations- Net sales' is $10.67 billion, indicating a year-over-year change of -21.6% [3] - Analysts predict 'Net Sales and Revenues- Construction & forestry net sales' to reach $3.05 billion, suggesting a decline of 20.7% year over year [4] - The combined estimate for 'Net Sales and Revenues- Agriculture and Turf' is $7.62 billion, reflecting a year-over-year change of -22% [4] - 'Net Sales and Revenues- Small ag & turf net sales' is expected to be $2.77 billion, down 13.1% from the prior year [5] - The estimate for 'Net Sales and Revenues- Production & precision ag net sales' stands at $4.85 billion, indicating a decline of 26.3% year over year [5] - The overall estimate for 'Net Sales and Revenues- Net sales' is $10.62 billion, suggesting a year-over-year change of -22% [6] - 'Net Sales and Revenues- Other revenues' is projected at $212.04 million, down 7.8% from the previous year [6] Financial Services Revenue Estimates - Analysts estimate 'Net Sales and Revenues- Financial services revenues' at $1.35 billion, reflecting a year-over-year change of -3.2% [7] - The total for 'Net Sales and Revenues- Financial services- Total' is projected to be $1.46 billion, indicating an 8.3% decline year over year [7] - 'Net Sales and Revenues- Financial services- Finance and Interest Income' is expected to reach $1.37 billion, down 8.7% from the prior year [8] - 'Net Sales and Revenues- Financial services- Other Income' is forecasted at $90.58 million, suggesting a year-over-year change of -1.5% [8] - 'Net Sales and Revenues- Equipment Operations- Finance and interest income' is estimated at $110.08 million, indicating a decline of 14.7% from the previous year [9] Stock Performance - Over the past month, shares of Deere have returned +7.3%, outperforming the Zacks S&P 500 composite's +3.8% [9]

Group 1: Deere (DE) - Deere's stock has increased over 16% year-to-date, driven by optimism regarding easing trade tensions [3] - The company reported a first-quarter net income of $869 million, with a full-year forecast of $5 billion to $5.5 billion, but faced a 30% revenue decline and a 50% drop in net income compared to the previous year [5] - Deere's supply chain is relatively protected against tariffs due to domestic manufacturing, and the company is expected to address supply chain adjustments in its upcoming earnings call [9] Group 2: Energy Transfer (ET) - Energy Transfer has a distribution yield of 7.5% and plans to invest $5 billion in growth capital expenditures in 2025, significantly higher than its maintenance capital expenditures of $1.1 billion [12] - The company is in discussions to develop a large LNG export facility in Lake Charles, Louisiana, which could enhance its position in the energy market [13] - The current administration's business-friendly policies are expected to support the development of U.S. energy assets, benefiting companies like Energy Transfer [11] Group 3: Huntington Ingalls Industries (HII) - Huntington Ingalls' shares have risen over 20% in 2025, contrasting with a nearly 4% dip in the S&P 500, and the company offers a forward yield of 2.3% [14] - The company reported first-quarter revenue of $2.7 billion, below expectations, but exceeded earnings estimates with an EPS of $3.79 [15] - Management reaffirmed a 2025 forecast of shipbuilding revenue between $8.9 billion and $9.1 billion, alongside a free cash flow projection of $300 million to $500 million [16]

Core Viewpoint - The market anticipates a year-over-year decline in Deere's earnings due to lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Deere is expected to report quarterly earnings of $5.68 per share, reflecting a year-over-year decrease of 33.4% [3]. - Revenue projections stand at $10.65 billion, down 21.8% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.85% over the last 30 days, indicating a bearish sentiment among analysts [4]. - The Most Accurate Estimate for Deere is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.24% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [8]. - However, a negative Earnings ESP does not necessarily indicate an earnings miss, making predictions less reliable [9]. Historical Performance - In the last reported quarter, Deere exceeded expectations with earnings of $3.19 per share against an estimate of $3.13, resulting in a surprise of +1.92% [12]. - Over the past four quarters, Deere has consistently beaten consensus EPS estimates [13]. Conclusion - Despite the potential for an earnings miss, betting on stocks expected to beat earnings can improve success odds, highlighting the importance of monitoring Earnings ESP and Zacks Rank [15]. - Currently, Deere does not appear to be a strong candidate for an earnings beat, suggesting investors should consider other factors before making decisions [16].

Core Viewpoint - Deere has been gaining attention in the market, with its stock performance outpacing the broader S&P 500 index and the farm equipment industry, raising questions about its future trajectory [2]. Earnings Estimates - Deere is expected to report earnings of $5.68 per share for the current quarter, reflecting a year-over-year decline of -33.4%. The consensus estimate for the current fiscal year is $18.89, indicating a -26.3% change [5][6]. - The consensus earnings estimate for the next fiscal year is $21.17, which represents a +12.1% increase compared to the previous year [6]. Revenue Projections - The consensus sales estimate for the current quarter is $10.65 billion, showing a year-over-year decrease of -21.8%. For the current and next fiscal years, the sales estimates are $38.23 billion and $40.52 billion, indicating changes of -14.6% and +6%, respectively [11]. Recent Performance - In the last reported quarter, Deere's revenues were $6.81 billion, down -35.1% year-over-year, with an EPS of $3.19 compared to $6.23 a year ago. The reported revenues fell short of the Zacks Consensus Estimate of $7.7 billion by -11.51% [12]. - The company has consistently beaten consensus EPS estimates in the last four quarters and has exceeded revenue estimates three times during this period [13]. Valuation Metrics - Deere's valuation metrics suggest it is trading at a premium compared to its peers, receiving a Zacks Value Style Score of D, indicating potential overvaluation [17].

Group 1 - Deere & Company is a prominent name in American agriculture, recognized for its deep integration in the farming industry [1] - The company is known for its strong brand and commitment to innovation within the agricultural sector [1] Group 2 - The article emphasizes the importance of business analysis, fundamental analysis, and valuation in understanding investment opportunities [1] - It highlights the focus on long-term growth in sectors such as AI, fintech, finance, and technology [1] - The analysis includes a review of publicly traded companies, concentrating on their business models, earnings performance, and competitive positioning [1]

Core Viewpoint - Deere & Company will hold its second quarter 2025 earnings call on May 15, 2025, at 9:00 a.m. central time, discussing financial and operational performance with analysts and investors [1]. Group 1 - The earnings call can be accessed online, and a recorded version will be available afterward on the company's website [2]. - Deere & Company is recognized as a global leader in providing advanced products, technology, and services for agriculture and construction sectors [3]. - The company focuses on meeting the increasing global demand for food, fuel, shelter, and infrastructure through its innovative solutions [3].

Company Performance - Deere's stock closed at $460.64, reflecting a slight increase of +0.1% from the previous day, underperforming the S&P 500 which gained 0.58% [1] - Over the past month, Deere's shares declined by 1.95%, outperforming the Industrial Products sector's loss of 3.25% but underperforming the S&P 500's loss of 0.84% [2] Upcoming Financial Results - Deere is set to announce its earnings on May 15, 2025, with projected EPS of $5.68, indicating a significant drop of 33.41% compared to the same quarter last year [3] - Revenue is expected to be $10.65 billion, representing a decline of 21.75% year-over-year [3] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $18.91 per share and revenue at $38.23 billion, reflecting decreases of -26.19% and -14.59% respectively from the prior year [4] - Recent changes in analyst estimates suggest a direct correlation with stock price performance, indicating potential optimism regarding the company's business [5] Analyst Ratings and Valuation - The Zacks Rank for Deere is currently 3 (Hold), with a recent decline of 1.98% in the consensus EPS estimate over the past month [6] - Deere's Forward P/E ratio stands at 24.33, which is higher than the industry's Forward P/E of 19.55, and its PEG ratio is 2.03, matching the average for the Manufacturing - Farm Equipment industry [7] Industry Context - The Manufacturing - Farm Equipment industry is part of the Industrial Products sector and currently holds a Zacks Industry Rank of 169, placing it in the bottom 32% of over 250 industries [8]

Core Viewpoint - Deere's stock performance has been closely monitored, with a recent return of -3.2% over the past month, outperforming the S&P 500's -4.8% and the Zacks Manufacturing - Farm Equipment industry's -4% [1] Earnings Estimate Revisions - For the current quarter, Deere is expected to report earnings of $5.68 per share, reflecting a -33.4% change year-over-year, with a consensus estimate change of -1.1% over the last 30 days [4] - The consensus earnings estimate for the current fiscal year is $18.91, indicating a -26.2% change from the previous year, with a -2% change in the estimate over the last 30 days [4] - For the next fiscal year, the consensus estimate is $21.22, showing a +12.2% change from the prior year, with a -2.7% change in the estimate over the past month [5] - Deere holds a Zacks Rank 3 (Hold) due to the recent changes in consensus estimates and other related factors [6] Projected Revenue Growth - The consensus sales estimate for the current quarter is $10.65 billion, indicating a -21.8% year-over-year change [10] - For the current fiscal year, the sales estimate is $38.23 billion, reflecting a -14.6% change, while the next fiscal year's estimate of $40.56 billion indicates a +6.1% change [10] Last Reported Results and Surprise History - In the last reported quarter, Deere's revenues were $6.81 billion, down -35.1% year-over-year, with an EPS of $3.19 compared to $6.23 a year ago [11] - The reported revenues were -11.51% below the Zacks Consensus Estimate of $7.7 billion, while the EPS surprise was +1.92% [11] - Deere has beaten consensus EPS estimates in the last four quarters and topped revenue estimates three times during this period [12] Valuation - Deere is graded D on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [16]