Deere (DE) Expected to Beat Earnings Estimates: Can the Stock Move Higher?

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Deere (DE) despite higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Deere is expected to report quarterly earnings of $1.92 per share, reflecting a year-over-year decrease of 39.8%, while revenues are projected at $7.6 billion, an increase of 11.7% from the previous year [3]. - The earnings report is scheduled for release on February 19, and better-than-expected results could lead to a stock price increase, whereas missing estimates may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised 0.07% higher in the last 30 days, indicating a slight bullish sentiment among analysts [4]. - The Most Accurate Estimate for Deere is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.13%, suggesting a likelihood of beating the consensus EPS estimate [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Historically, Deere has beaten consensus EPS estimates three out of the last four quarters, which may influence future earnings predictions [14]. Industry Comparison - CNH Industrial (CNH), a competitor in the agricultural equipment sector, is expected to report earnings of $0.11 per share, a year-over-year decline of 26.7%, with revenues projected at $5.02 billion, up 2.9% from the previous year [18]. - CNH's consensus EPS estimate has remained unchanged, but a higher Most Accurate Estimate has resulted in an Earnings ESP of +4.08%, combined with a Zacks Rank of 4, making predictions of an earnings beat challenging [19].