Core Insights - Deere & Company reported Q3 fiscal 2025 earnings of $4.75 per share, exceeding the Zacks Consensus Estimate of $4.62, but reflecting a 24% decline year-over-year due to lower shipment volumes [1][9] Financial Performance - Net sales from equipment operations were $10.36 billion, down 9% year-over-year, but above the Zacks Consensus Estimate of $10.26 billion. Total net sales, including financial services, were $12.02 billion, down 8.6% year-over-year [2][9] - The cost of sales decreased by 3.5% year-over-year to $7.57 billion, while total gross profit fell 21.2% to $2.79 billion. Total operating profit, including financial services, dropped 31.7% year-over-year to $1.57 billion [3] Segment Performance - Production & Precision Agriculture segment sales fell 16% year-over-year to $4.27 billion, missing estimates. Operating profit decreased 50% to $580 million due to lower shipment volumes [4] - Small Agriculture & Turf sales decreased 1% to $3.03 billion, exceeding projections. Operating profit fell 2% to $485 million, impacted by lower shipment volumes and higher warranty expenses [5] - Construction & Forestry sales were $3.06 billion, down 5% year-over-year, with operating profit decreasing 47% to $237 million due to unfavorable price realization and higher production costs [6] Financial Services - Revenues in the Financial Services division were $1.42 billion, down 4% year-over-year, while net income increased to $205 million from $153 million in the prior-year quarter, attributed to lower provision for credit losses [7] Cash and Debt Position - Cash and cash equivalents stood at $8.58 billion, up from $7.32 billion at the end of fiscal 2024. Cash flow from operating activities was $3.46 billion in the first nine months of fiscal 2025, down from $4.14 billion in the prior-year period. Long-term borrowing increased to $44.43 billion from $43.23 billion year-over-year [8] Guidance - Deere narrowed its fiscal 2025 net income forecast to between $4.75 billion and $5.25 billion. Expected sales declines include 15-20% for Production & Precision Agriculture, 10% for Small Agriculture & Turf, and 10-15% for Construction & Forestry [10] Stock Performance - DE shares have increased by 39.5% over the past year, outperforming the industry's growth of 37.4% [11]

Deere's Outlook and Visibility - Deere is taking a cautiously optimistic outlook for the fourth quarter, with good visibility due to full order books for the next four to five months [1][2] - Uncertainty remains regarding the demand in 2026, considering the less favorable commodities backdrop and trade uncertainty [2][3] - Deere is observing incremental demand in Europe and a potential recovery in South America [4] Pricing and Inventory - Negative pricing was implemented in the large agriculture business to reduce excess inventory in North America, which was unexpected [4] - Early order program commentary was somewhat negative, but anticipated due to short positioning [5] Innovation and Technology - Innovation, particularly technologies like See & Spray, is contributing to higher yields (USDA expects 188 bushels per acre of corn) and driving pricing power for Deere [6][7] - Farmers are willing to pay for technologies that lower input costs while protecting yields [7] Cost Considerations - Tariffs pose incremental cost challenges that need to be factored into pricing [7]

Core Viewpoint - John Deere is committing to invest nearly $20 billion over the next decade to enhance its US operations and support American manufacturing [1][5]. Investment Focus - The investment will focus on developing new products, advanced technology, and improved manufacturing capabilities [2]. Recent Developments - John Deere is constructing a $70 million factory in Kernersville, North Carolina, dedicated to manufacturing excavators [3]. - A $40 million expansion has been completed at the Des Moines, Iowa factory to produce See & Spray sprayers, which utilize computer vision and AI for weed detection [4]. - The company has invested nearly $150 million to renovate its East Moline, Illinois factory for the production of new X9 combines, which increase harvesting capacity by approximately 45% [6]. Employment and Sales - Nearly 80% of John Deere's US sales and 25% of international sales come from domestically manufactured products [7]. - The company employs around 30,000 people across more than 60 US locations, with an additional 50,000 employed by its network of independent US dealerships [7].

Core Viewpoint - Alamo Group (ALG) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, continuing a strong trend of surpassing expectations in recent quarters [1][6]. Earnings Performance - Alamo Group has consistently exceeded earnings estimates, with an average surprise of 10.45% over the last two quarters [2]. - In the last reported quarter, the company achieved earnings of $2.65 per share, surpassing the Zacks Consensus Estimate of $2.33 per share by 13.73% [3]. - For the previous quarter, Alamo Group's earnings were $2.39 per share against an expected $2.23 per share, resulting in a surprise of 7.17% [3]. Earnings Estimates and Predictions - The company's earnings estimates have been trending higher, supported by its history of earnings surprises [6]. - Alamo Group currently has a positive Earnings ESP of +2.05%, indicating increased analyst optimism regarding its near-term earnings potential [9]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong likelihood of another earnings beat in the upcoming report [9]. Earnings ESP Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [7]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions prior to earnings releases [8].

Core Viewpoint - CNH Industrial (CNH) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended June 2025, with the consensus outlook indicating a significant impact on its near-term stock price based on actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $0.16 per share, reflecting a year-over-year decrease of 57.9% [3]. - Revenues are projected to be $4.53 billion, down 17.6% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 3.31% lower in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for CNH is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.59%, suggesting a bullish outlook from analysts [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]. - CNH currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, CNH was expected to post earnings of $0.09 per share but exceeded expectations with earnings of $0.10, resulting in a surprise of +11.11% [13]. - Over the past four quarters, CNH has only beaten consensus EPS estimates once [14]. Industry Comparison - Agco (AGCO), a competitor in the manufacturing - farm equipment industry, is expected to report earnings of $1.06 per share for the same quarter, indicating a year-over-year change of -58.1% [18]. - Agco's revenues are projected to be $2.48 billion, down 23.6% from the previous year, with a consensus EPS estimate revised 1.3% upward in the last 30 days, but it has a negative Earnings ESP of -0.47% [19].

Brazil has raised interest rates on farm equipment financing, threatening to constrain a much-needed recovery in tractor sales https://t.co/8p5Pr7cNQn ...

Group 1 - Agco (AGCO) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which significantly influences stock prices [1][3] - The Zacks rating system is based on changes in earnings estimates, which are tracked through a consensus measure from sell-side analysts [1][2] - The upgrade reflects an improvement in Agco's underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10] Group 2 - The correlation between earnings estimate revisions and stock price movements is strong, with institutional investors using these estimates to determine fair value [4][6] - For the fiscal year ending December 2025, Agco is expected to earn $4.20 per share, with a 1.2% increase in the Zacks Consensus Estimate over the past three months [8] - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9] Group 3 - The placement of Agco in the top 20% of Zacks-covered stocks indicates its strong earnings estimate revision feature, suggesting potential for market-beating returns in the near term [10]

Core Insights - Deere & Company (DE) and CNH Industrial N.V. (CNH) are leading global players in agricultural machinery, with Deere holding the top position [1] - Both companies are significantly impacted by ongoing weaknesses in agricultural and construction markets, raising questions about investment choices [2] Company Overview - Deere has a market capitalization of $139 billion and specializes in agricultural, forestry, and turf equipment, with a strong presence in precision farming technology [3] - CNH Industrial has a market capitalization of approximately $16 billion and operates well-known agricultural equipment brands such as New Holland and Case IH [8] Financial Performance - Both DE and CNH have faced revenue declines for seven consecutive quarters, with DE's earnings slipping in the last six quarters due to lower volumes in agriculture and construction [4][9] - DE anticipates a 30% decline in large agriculture equipment sales in fiscal 2025, while CNH expects total net sales to decline between 11% and 19% compared to 2024 [5][10] Market Outlook - The agricultural equipment market in the U.S. and Canada is projected to decline by 10-15% for small equipment, while European markets are expected to decline approximately 5% [5] - Construction equipment demand is also under pressure, with DE expecting a 10% drop in U.S. and Canadian construction equipment sales [6] Innovation and Growth Prospects - Both companies are ramping up innovation capabilities, with DE focusing on advanced technologies and geographic expansion to drive long-term growth [7][11] - CNH is making strategic strides in automation and digital integration, with 80% of its precision components developed internally in 2024 [12] Earnings Estimates - The Zacks Consensus Estimate for DE's fiscal 2025 earnings is $18.82 per share, indicating a year-over-year fall of 26.54% [13] - CNH's 2025 earnings estimate is 62 cents per share, indicating a year-over-year decline of 41% [14] Stock Performance and Valuation - Year-to-date, DE stock has gained 21.2%, outperforming the Zacks manufacturing - farm equipment industry's growth of 19.7%, while CNH has lagged at 15% [16] - DE is trading at a forward 12-month earnings multiple of 24.49X, while CNH is at 17.71X, with CNH trading at a discount to industry averages [18] Investment Considerations - Both companies face near-term headwinds, but are fundamentally tied to long-term megatrends such as rising food demand and advancements in agricultural technology [20] - From a valuation standpoint, CNH appears more attractive currently, with a Value Score of B compared to DE's D [21]

Core Insights - Lindsay Corporation (LNN) reported adjusted earnings per share of $1.78 for Q3 fiscal 2025, exceeding the Zacks Consensus Estimate of $1.36 and down from $1.85 in the same quarter last year [1][9] - The company generated revenues of $169.5 million, a 22% increase from $139 million in the prior year, and also surpassed the Zacks Consensus Estimate of $162 million [2][9] Financial Performance - Gross profit rose 15.5% to $54 million, while gross margin decreased to 31.7% from 33.4% year over year [3] - Operating income increased to $23.8 million from $19.9 million in the prior year, with operating expenses rising 12.5% to $29.8 million [3] Segment Analysis - The Irrigation segment's revenues grew 25% year over year to approximately $144 million, with international revenues surging 60% to $75 million due to a significant project in the MENA region [4][9] - The Infrastructure segment saw a 6% revenue increase to $26 million, but operating income fell 14% to $5.4 million despite higher Road Zipper System sales [5] Financial Position - At the end of Q3 fiscal 2025, Lindsay had cash and cash equivalents of $196 million, up from $191 million at the end of fiscal 2024, with long-term debt remaining stable at around $115 million [6] Market Outlook - The company anticipates a tempered North America irrigation business due to low farm income, but remains optimistic about international irrigation opportunities, especially in developing regions [7] Stock Performance - Lindsay's shares have increased by 11.8% over the past year, compared to the industry's growth of 32.4% [8]

Core Insights - Deere & Company reported second-quarter fiscal 2025 earnings of $6.64 per share, exceeding the Zacks Consensus Estimate of $5.68, but reflecting a 22% decrease from the prior-year quarter due to lower shipment volumes [1] - Net sales for equipment operations were $11.17 billion, down 17.9% year over year, yet above the Zacks Consensus Estimate of $10.65 billion. Total net sales, including financial services, were $12.76 billion, down 16% year over year [2] Financial Performance - The cost of sales decreased 16.9% year over year to $7.61 billion, while total gross profit fell 20.1% to $3.55 billion. Selling, administrative, and general expenses decreased by 5.4% to $1.19 billion [3] - Total operating profit, including financial services, declined 26% year over year to $2.31 billion in the second quarter [3] Segment Performance - Production & Precision Agriculture segment sales fell 21% year over year to $5.23 billion, with operating profit decreasing 30% to $1.15 billion, surpassing the estimated revenue of $4.61 billion [4] - Small Agriculture & Turf sales decreased 6% to $2.99 billion, with operating profit rising 1% to $574 million, exceeding the estimate of $485 million [5] - Construction & Forestry sales were $2.95 billion, down 23% year over year, with operating profit decreasing 43% to $379 million, missing the estimate of $588 million [6] - Financial Services division revenues were $1.38 billion, down 1% year over year, with net income slightly declining to $161 million [7] Cash and Debt Position - Cash and cash equivalents at the end of the second quarter were $7.99 billion, up from $7.32 billion at the end of fiscal 2024. Cash flow from operating activities was $568 million in the first half of fiscal 2025, down from $944 million in the prior-year period [8] - Long-term borrowing increased to nearly $43 billion from $41 billion at the end of the previous year [8] 2025 Guidance - The company expects net income for fiscal 2025 to be between $4.75 billion and $5.50 billion. Net sales for Production & Precision Agriculture are projected to decrease by 15-20%, while Small Agriculture & Turf and Construction & Forestry sales are expected to decline by 10-15% [9] Share Price Performance - Deere's shares have increased by 28% over the past year, outperforming the industry's growth of 23.8% [10]