Group 1 - Deere reported quarterly earnings of $6.64 per share, exceeding the Zacks Consensus Estimate of $5.68 per share, but down from $8.53 per share a year ago, representing an earnings surprise of 16.90% [1] - The company posted revenues of $11.17 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 4.89%, compared to year-ago revenues of $13.61 billion [2] - Deere has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Group 2 - The stock has gained approximately 17.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 0.2% [3] - The current consensus EPS estimate for the upcoming quarter is $5.35 on revenues of $10.44 billion, and for the current fiscal year, it is $18.89 on revenues of $38.23 billion [7] - The Zacks Industry Rank for Manufacturing - Farm Equipment is currently in the bottom 36% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

2Q 2025 Earnings Call Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on management's current beliefs, expectations and assumptions regarding the future of the Company's business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, changes in circumstances, and othe ...

Core Insights - Deere & Company reported a net income of $1.804 billion for Q2 2025, down 24% from $2.370 billion in Q2 2024, with earnings per share decreasing from $8.53 to $6.64 [1][3][19] - For the first half of 2025, net income was $2.673 billion, a 35% decline from $4.121 billion in the same period last year [1][19] - The company anticipates full-year net income for fiscal 2025 to be between $4.75 billion and $5.50 billion [3][12] Financial Performance - Total net sales and revenues decreased by 16% to $12.763 billion in Q2 2025, and by 22% to $21.272 billion for the first six months [2][4][19] - Net sales for Q2 2025 were $11.171 billion, down from $13.610 billion in Q2 2024, while for the first half, sales fell from $24.097 billion to $17.980 billion [2][19] - Operating profit for the total company decreased by 26% to $2.308 billion in Q2 2025, and by 41% to $3.101 billion for the first half [4][19] Segment Performance - Production & Precision Agriculture segment saw net sales drop by 21% to $5.230 billion, with operating profit down 30% to $1.148 billion [5][16] - Small Agriculture & Turf segment reported a 6% decrease in net sales to $2.994 billion, but operating profit increased by 1% to $574 million [6][16] - Construction & Forestry segment experienced a 23% decline in net sales to $2.947 billion, with operating profit falling 43% to $379 million [7][16] Market Outlook - The company expects a decline of approximately 30% in large agriculture equipment sales in the U.S. and Canada, and a 10-15% decrease in small agriculture and turf sales [10][11] - Construction equipment sales in the U.S. and Canada are projected to decrease by around 10% [11] - The outlook incorporates the effects of global import tariffs, with potential future tariff impacts not included due to uncertainty [12][14] Strategic Focus - The company emphasizes ongoing investment in advanced products and manufacturing capabilities to remain competitive [4][8] - Deere & Company aims to continue significant investments in its core U.S. market over the next decade, focusing on innovation and growth [4][8]

Financial Performance - Deere & Company reported a net income of $1.804 billion for Q2 2025, down 24% from $2.370 billion in Q2 2024, with earnings per share decreasing from $8.53 to $6.64[1][5] - Worldwide net sales and revenues decreased by 16% to $12.763 billion for Q2 2025, and by 22% to $21.272 billion for the first six months of the year[2][24] - The company forecasts full-year net income for fiscal 2025 to be in the range of $4.75 billion to $5.50 billion[3] - Production & Precision Agriculture segment net sales fell by 21% to $5.230 billion, with operating profit down 30% to $1.148 billion[6][24] - Small Agriculture & Turf segment net sales decreased by 6% to $2.994 billion, while operating profit remained stable at $574 million[9][24] - Construction & Forestry segment net sales dropped by 23% to $2.947 billion, with operating profit declining 43% to $379 million[13][24] - Financial Services net income for Q2 2025 was flat at $161 million, reflecting less favorable financing spreads[15][24] - Total net income attributable to Deere & Company for the six months ended April 27, 2025, was $2,673 million, down from $4,121 million in the same period of 2024, representing a decline of 35%[27] - Net income attributable to Deere & Company for the three months ended April 27, 2025, was $1,643 million, down 25.5% from $2,208 million in the same period of 2024[35] - Net income attributable to Deere & Company for the six months ended April 27, 2025, was $2,282 million, down 39.2% from $3,751 million in the same period of 2024[37] Sales and Revenue Trends - Net sales for the three months ended April 27, 2025, were $11,171 million, a decrease of 18% compared to $13,610 million in the same period of 2024[27] - For the six months ended April 27, 2025, net sales were $17,980 million, a decline of 25.5% from $24,097 million in the same period of 2024[37] - Total costs and expenses for the three months ended April 27, 2025, were $10,426 million, a decrease of 13.9% from $12,118 million in the same period of 2024[35] Cash Flow and Liquidity - Cash and cash equivalents increased to $7,991 million as of April 27, 2025, compared to $5,553 million as of April 28, 2024[29] - The company reported a net cash provided by operating activities of $568 million for the six months ended April 27, 2025, compared to $944 million in the same period of 2024[31] - Cash flows from operating activities totaled $1,045 million in 2025, down from $3,031 million in 2024, reflecting a significant decline[43] - Cash and cash equivalents at the end of the period increased to $6,352 million in 2025 from $3,839 million in 2024, showing a strong liquidity position[43] Investments and Future Outlook - The company plans to continue significant investments in advanced products and manufacturing capabilities over the next decade[4] - The industry outlook indicates a decline of approximately 30% in large agriculture in the U.S. and Canada, and a 10-15% decrease in small agriculture and turf[18] - The company is navigating challenges from global import tariffs and uncertain trade environments, which may impact future performance[21] Balance Sheet and Assets - Total assets as of April 27, 2025, were $106,303 million, a slight decrease from $107,320 million as of October 27, 2024[29] - Total liabilities decreased to $81,925 million as of April 27, 2025, from $84,395 million as of October 27, 2024[29] - Stockholders' equity for Deere & Company increased to $24.287 billion in April 2025, compared to $22.684 billion in April 2024, marking a growth of about 7.1%[41] Dividends and Shareholder Returns - Dividends declared for the three months ended April 27, 2025, were $1.62 per share, an increase from $1.47 per share in the same period of 2024[27] - Dividends paid increased to $843 million in 2025 from $796 million in 2024, demonstrating a commitment to returning capital to shareholders[43] Other Financial Metrics - Research and development expenses for the three months ended April 27, 2025, were $549 million, slightly down from $565 million in the same period of 2024[27] - Interest expense for the three months ended April 27, 2025, was $784 million, a decrease of 6.2% from $836 million in the same period of 2024[35] - The provision for income taxes for the three months ended April 27, 2025, was $539 million, down from $751 million in the same period of 2024[35] - The provision for credit losses increased to $174 million in 2025 from $131 million in 2024, indicating a rise in expected credit losses[43]

Earnings Report - Deere & Company is set to release its second-quarter earnings results on May 15, with expected earnings of $5.64 per share, a decrease from $8.53 per share in the same period last year [1] - The projected quarterly revenue is $10.79 billion, down from $13.61 billion a year earlier [1] First Quarter Performance - In the first quarter of 2025, Deere reported a net sales and revenue decline of 30% year-over-year, totaling $8.51 billion, which exceeded the consensus estimate of $7.70 billion [2] Stock Performance - Deere shares experienced a slight decline of 0.2%, closing at $497.50 [2] Analyst Ratings - UBS analyst Steven Fisher maintained a Neutral rating and reduced the price target from $462 to $440 [8] - Baird analyst Mircea Dobre downgraded the stock from Outperform to Neutral with a price target of $501 [8] - Evercore ISI Group analyst David Raso maintained an In-Line rating and increased the price target from $437 to $455 [8] - Truist Securities analyst Jamie Cook reiterated a Buy rating but lowered the price target from $550 to $546 [8] - JP Morgan analyst Tami Zakaria maintained a Neutral rating and raised the price target from $470 to $500 [8]

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]

Core Points - The recent high-level economic talks between China and the U.S. in Geneva resulted in significant agreements, including a reduction of bilateral tariffs, with the U.S. canceling 91% of additional tariffs and China reciprocating with a similar reduction [1] - The easing of trade tensions is expected to boost cross-border trade, lower input costs, and alleviate supply chain pressures in key industries, leading to positive market reactions, particularly in shipping, semiconductors, and logistics [1] Shipping and Logistics - Stocks such as ZIM, Matson, FedEx, UPS, and Uber saw significant pre-market gains, benefiting from increased trade volumes and improved cross-border transportation efficiency due to reduced tariffs [3] Semiconductors - Companies like Nvidia, AMD, Marvell Technology, TSMC, ASML, and Intel experienced notable pre-market stock increases, as tariff reductions are expected to ease supply chain disruptions and lower manufacturing costs for chipmakers [4] Retailers - Major retailers including Walmart, Amazon, Costco, and Target reported pre-market stock gains, as lower import costs could enhance profit margins and pricing power for those reliant on Chinese goods [5] Automotive and Parts - Automotive stocks such as Tesla, Ford, General Motors, and Aptiv saw pre-market increases, benefiting from reduced costs of metals and electronic components, which could enhance profitability for major manufacturers [6] Industrial Equipment - Companies like Caterpillar and Deere & Company experienced stock gains, as tariff reductions on machinery parts may improve profit margins and production capacity for firms reliant on imported components [7] Consumer Electronics - Apple and Dell saw pre-market stock increases, as supply chain cost savings are expected to enhance profitability, particularly for companies with supply chains centered in China [8] Airlines - Airline stocks including United Airlines, American Airlines, Delta Airlines, and JetBlue experienced pre-market gains, as reduced tariffs could lower operational costs and potentially increase air freight demand due to strengthened global trade [9] Chinese Tech Giants Listed in the U.S. - Stocks of Alibaba, JD.com, and Baidu saw pre-market increases, as tariff reductions are likely to alleviate supply chain pressures and improve market access conditions for these companies [10]

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]