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]

Industry Overview - The Zacks Manufacturing - Farm Equipment industry is expected to face challenges due to lower farm income, with a forecasted 0.7% year-over-year dip in net farm income to $153.4 billion by 2026 [4] - Despite short-term challenges, the industry is projected to benefit from rising global food demand driven by population growth and improving living standards, with the U.S. agricultural machinery market expected to grow at a CAGR of 2.38% from 2025 to 2031 [5] - The industry is characterized by major players such as Deere, Kubota, and CNH Industrial, which are the top three global manufacturers of agricultural equipment [3] Trends and Challenges - The U.S. Department of Agriculture (USDA) anticipates total production expenses to rise by 1%, with livestock/poultry purchases, feed, and labor being the primary expense categories [4] - Companies in the industry are facing cost inflation, labor shortages, and tariff-related pressures, prompting them to implement pricing actions and cost-cutting measures to protect profitability [6] - Technological advancements in agriculture, including automation and precision farming, are expected to drive growth, with companies like Deere, CNH Industrial, and Kubota increasing investments in technology [2][7] Company Highlights - **Kubota**: The company is focusing on smart agriculture initiatives and expects revenue growth in its Farm and Industrial machinery segment, supported by strong construction equipment sales in North America and recovery in Europe [18] The Zacks Consensus Estimate for Kubota's earnings for fiscal 2026 has increased to $4.90 per share, with a trailing four-quarter earnings surprise of 22.2% [19] - **AGCO**: The company is investing in precision farming technology and has seen strong demand for its products, with a long-term earnings growth rate estimated at 24.4% [24] The consensus estimate for AGCO's 2026 earnings has increased by 2%, suggesting year-over-year growth of 8.5% [24] - **Alamo Group**: The company is investing in organic growth and strategic acquisitions, including the recent acquisition of Petersen Industries, which is expected to enhance growth and margins [27] The Zacks Consensus Estimate for Alamo's fiscal 2026 earnings implies year-over-year growth of 16.9% [28] - **Lindsay**: The company has enhanced its irrigation management capabilities through a minority interest acquisition in Pessl Instruments GmbH and is benefiting from rising infrastructure spending in the U.S. [30] The Zacks Consensus Estimate for Lindsay's fiscal 2026 earnings has remained unchanged, with a trailing four-quarter earnings surprise of 15.2% [31] Market Performance - The Zacks Manufacturing - Farm Equipment industry has underperformed its sector but outperformed the S&P 500 over the past 12 months, with an 18.3% gain compared to the S&P 500's 13.9% [11] - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 30.66X, significantly higher than the S&P 500's 17.70X and the Industrial Products sector's 21.66X [14]

CNH Industrial (CNH) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +74.47%. A quarter ago, it was expected that this truck, tractor and bus maker would post earnings of $0.13 per share when it actually produced earnings of $0.08, delivering a surprise of -38.46%.Over the last four q ...

The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Kubota Corp. (KUBTY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Kubota Corp. is one of 179 individual stocks in the Industrial Products sector. Collectively, these companies sit at #7 in the Za ...

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].

Core Viewpoint - Deere's stock performance has outpaced major indices, with a notable increase in the past month, while upcoming earnings are expected to show a significant year-over-year decline in earnings per share [1][2]. Financial Performance - In the latest trading session, Deere's stock rose by 2.4% to $545.00, contrasting with the S&P 500's decline of 0.84% [1]. - Analysts project Deere will report earnings of $1.92 per share, reflecting a year-over-year decline of 39.81%, while revenue is expected to reach $7.6 billion, an increase of 11.68% from the previous year [2]. - For the entire year, earnings are forecasted at $16.82 per share, down 9.08%, and revenue at $40 billion, up 2.78% compared to the prior year [3]. Analyst Sentiment - Recent changes in analyst estimates for Deere are crucial, as they often indicate shifts in short-term business dynamics, with positive revisions suggesting optimism about the company's profitability [3][4]. - The Zacks Consensus EPS estimate has increased by 0.29% in the past month, and Deere currently holds a Zacks Rank of 3 (Hold) [5]. Valuation Metrics - Deere's Forward P/E ratio stands at 31.64, significantly higher than the industry average of 20.03, indicating that Deere is trading at a premium [6]. - The PEG ratio for Deere is 2.12, aligning with the industry average, which also reflects the expected earnings growth rate [6]. Industry Context - The Manufacturing - Farm Equipment industry, part of the Industrial Products sector, holds a Zacks Industry Rank of 96, placing it in the top 40% of over 250 industries [7]. - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [7].

Core Viewpoint - Deere's upcoming earnings release is anticipated to show a significant year-over-year decline in earnings per share, despite an expected increase in revenue [2][3]. Financial Performance - Deere's stock closed at $475.20, reflecting a decrease of 2.22% from the previous day, underperforming the S&P 500's loss of 0.34% [1] - Over the past month, Deere's shares increased by 4.99%, outperforming the Industrial Products sector's gain of 3.18% and the S&P 500's gain of 1.19% [1] - The projected earnings for the upcoming report are $1.9 per share, indicating a year-over-year decline of 40.44%, while revenue is expected to be $7.6 billion, representing an 11.67% increase from the same quarter last year [2] - Full-year estimates predict earnings of $17.51 per share and revenue of $39.99 billion, reflecting year-over-year changes of -5.35% and +2.77%, respectively [3] Analyst Insights - Recent revisions to analyst forecasts for Deere are crucial as they indicate changing business trends, with positive revisions seen as a favorable sign for the company's outlook [3] - The Zacks Rank system, which evaluates estimated changes, currently ranks Deere at 3 (Hold), with a recent 0.85% decrease in the consensus EPS estimate over the last 30 days [5] Valuation Metrics - Deere's Forward P/E ratio stands at 27.76, which is a premium compared to the industry average of 19.15 [6] - The PEG ratio for Deere is 1.86, aligning with the average PEG ratio of the Manufacturing - Farm Equipment industry [6] Industry Context - The Manufacturing - Farm Equipment industry is part of the Industrial Products sector and currently holds a Zacks Industry Rank of 211, placing it in the bottom 14% of over 250 industries [7] - The Zacks Industry Rank indicates that the top 50% of rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - The Zacks Manufacturing - Farm Equipment industry is facing short-term challenges due to weak commodity prices, but it is expected to benefit from rising agricultural equipment demand driven by population growth and the need for mechanization [1][5]. Industry Overview - The industry includes manufacturers of various agricultural equipment such as tractors, combines, and irrigation equipment, with major players being Deere, Kubota, and CNH Industrial [3]. - The U.S. Department of Agriculture projects net farm income to reach $179.8 billion in 2025, reflecting a 40.7% increase from the previous year, although crop receipts are expected to decline by 2.5% [4]. Demand Drivers - Increased global food demand due to population growth and rising living standards is expected to support agricultural equipment demand [5]. - Farmers are increasingly turning to mechanization to manage larger farm sizes and rising labor costs, aided by subsidies for agricultural machinery [5]. Technological Advancements - Companies are investing in technology to automate farming processes and enhance precision, with a focus on smart farming solutions [2][7]. - Precision agriculture technology is anticipated to be a significant catalyst for improving yields while reducing costs [7]. Financial Performance - The industry has outperformed its sector but lagged behind the S&P 500 over the past year, with an 11% gain compared to the S&P 500's 16.5% [10]. - The industry is currently trading at a trailing EV/EBITDA ratio of 25.38X, higher than the S&P 500's 18.25X [13]. Company Highlights - **AGCO Corp.**: The company is focusing on precision farming technology and has seen margin expansion due to strategic investments and cost-control measures. It has a long-term earnings growth rate estimate of 12.6% and a trailing four-quarter earnings surprise of 327.7% [17][18]. - **Lindsay Corporation**: The company reported an 11% revenue growth in fiscal 2025, driven by irrigation and infrastructure revenues, and has a strong focus on innovations in water management [21].

Core Insights - Deere reported quarterly earnings of $3.93 per share, missing the Zacks Consensus Estimate of $3.96 per share, and down from $4.55 per share a year ago, representing an earnings surprise of -0.76% [1] - The company posted revenues of $10.58 billion for the quarter ended October 2025, exceeding the Zacks Consensus Estimate by 5.92%, and up from $9.28 billion year-over-year [2] - Deere shares have increased approximately 17.6% year-to-date, outperforming the S&P 500's gain of 15% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.62 on revenues of $7.19 billion, and for the current fiscal year, it is $19.43 on revenues of $40.03 billion [7] - The estimate revisions trend 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 is currently in the bottom 11% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8]

Core Insights - Deere & Company (DE) shares have increased by 12.8% year to date, outperforming the Zacks Manufacturing - Farm Equipment industry's growth of 11.5% and the broader Zacks Industrial Products sector's gain of 6.7% [1][8] - Despite the stock's performance, the company has faced declining sales and earnings, with Q3 sales down 9% and earnings per share down 24% year over year [8][11] - The company has lowered its fiscal year 2025 net income outlook to between $4.75 billion and $5.25 billion, significantly below the previous year's $7.1 billion [15] Performance Comparison - DE's year-to-date stock performance has outpaced peers such as CNH Industrial N.V. (CNH), which declined by 1.4%, while AGCO Corporation (AGCO) increased by 14.1% [3][4] - The consensus estimate for fiscal 2025 earnings indicates a year-over-year decline of 27.32%, while fiscal 2026 shows a potential growth of 12.1% [17] Sales and Earnings Trends - DE has experienced a downtrend in sales for the past eight quarters, with earnings declining in seven consecutive quarters due to lower shipment volumes amid weak demand [9] - In Q3 fiscal 2025, DE's Agricultural and Turf equipment sales fell by 10.5% year over year, and the Construction and Forestry segment reported a 5.4% decline in sales [10][11] Market Conditions - The U.S. Department of Agriculture forecasts a 29.5% year-over-year increase in net farm income for 2025, but total crop receipts are expected to decrease by 2.3%, which may negatively impact demand for farming equipment [13] - DE anticipates a decline in net sales for Production and Precision Agriculture by 15-20% year over year in fiscal 2025 [14] Valuation and Investment Sentiment - DE is currently trading at a forward Price/Earnings ratio of 23.33X, which is a 9% premium to the industry average of 21.43X and higher than its five-year median of 15.83X [18] - The company's Value Score of D indicates that the stock is perceived as overvalued at this time [18] Long-Term Outlook - Despite current challenges, rising global food demand and increasing farm sizes are expected to sustain long-term demand for agricultural equipment [20] - The company's focus on precision agriculture and technologically advanced products may serve as catalysts for future growth [20]