Deere (DE) Beats Q1 Earnings and Revenue Estimates

Core Insights - Deere (DE) reported quarterly earnings of $2.42 per share, exceeding the Zacks Consensus Estimate of $1.92 per share, but down from $3.19 per share a year ago, resulting in an earnings surprise of +26.21% [1] - The company achieved revenues of $8 billion for the quarter, surpassing the Zacks Consensus Estimate by 5.22%, compared to $6.81 billion in the same quarter last year [2] - Deere's stock has increased by approximately 27.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 0.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $5.55, with projected revenues of $11.32 billion, and for the current fiscal year, the EPS estimate is $16.82 on revenues of $40 billion [7] - The trend of estimate revisions for Deere was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Manufacturing - Farm Equipment industry, to which Deere belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% of industries [8] - Alamo Group (ALG), another company in the same industry, is expected to report quarterly earnings of $2.06 per share, reflecting a year-over-year decline of -13.8%, with revenues projected at $399.6 million, up 3.7% from the previous year [9][10]