Analysts Estimate Deere (DE) to Report a Decline in Earnings: What to Look Out for

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].