Deere Gears Up to Report Q1 Earnings: What to Expect for the Stock?

Core Viewpoint - Deere & Company is expected to report a significant decline in earnings and revenues for the first quarter of fiscal 2025, with challenges stemming from weak farmer spending and high production costs [2][6]. Financial Performance Estimates - The Zacks Consensus Estimate for Deere's earnings has decreased by 0.3% over the past 60 days to $3.14 per share, indicating a 49.6% decline from the previous year [2]. - Revenue estimates are set at $7.7 billion, reflecting a 26.6% year-over-year decrease [2]. - The earnings surprise history shows an average surprise of 13.5% over the last four quarters, with reported earnings consistently beating estimates [4]. Segment Performance Projections - The Production & Precision Agriculture segment is projected to generate revenues of $3.59 billion, down 26% year-over-year, with operating profit expected to fall by 59.6% to $422 million [8]. - The Small Agriculture & Turf segment's revenues are estimated at $1.90 billion, indicating a 21.5% decline, with operating profit expected to decrease by 46.6% to $174 million [9]. - The Construction & Forestry segment is forecasted to have sales of $2.35 billion, a 26.9% drop, with operating profit predicted to plunge 56.5% to $596 million [10]. - The Financial Services segment is expected to see revenues of $1.59 billion, an 11.1% increase, with operating profit projected at $230 million [11]. Market Context - Deere's stock has increased by 21.3% over the past year, outperforming the industry average growth of 18.7% [12]. - The company is currently ranked 3 by Zacks, indicating a hold position, with a positive Earnings ESP of +1.12% suggesting a potential earnings beat [5][6].