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The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $2.28 for the fiscal first quarter, suggesting a decline of 41% year over year. The Zacks Consensus Estimate for total revenues is pinned at $8.09 billion for the period, calling for a year-over-year improvement of 0.52%. Earnings estimates for the fiscal first quarter have moved up in the past 30 days.
Q4 Results
In the last reported quarter, Deere’s earnings and sales increased year over year. The bottom line surpassed the Zacks Consensus Estimate, but the top line missed the same. The company has a trailing four-quarter earnings surprise of 33.5%, on average.
Let’s see how things have shaped up prior to this announcement.
Our proven model conclusively predicts an earnings beat for Deere this season. The combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Deere is +9.75%.
Higher agricultural commodity prices and pick-up in farm income have prompted farmers to boost spending on new agricultural equipment and replace the age-old ones. Apart from this, the preference for Deere’s products for their advanced technologies and features will likely reflect on fiscal first-quarter revenues. Robust order book driven by strong production and upbeat commodity prices is likely to have contributed to Deere’s performance during the quarter.
Cost management and benefits from footprint assessment are likely to have boosted the company’s margin in the to-be-reported quarter. However, rising raw material and logistics costs as well as uncertainties regarding the COVID-19 pandemic might have affected quarterly performance.
The Construction & Forestry segment sales are expected to have benefited from strong demand for farm and construction equipment, continued strength in the housing market and increased activity in the oil and gas sector during the fiscal first quarter. Demand for earthmoving and compact construction equipment, particularly in North America, remains strong. Robust lumber demand is anticipated to have aided forestry sales during the quarter under review.
Price Performance
Deere’s shares have gained 23.5% in the past year compared with the industry’s growth of 19.6%.
Image Source: Zacks Investment Research
Stocks Worth a Look
Here are other stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Sealed Air Corporation (SEE - Free Report) currently has an Earnings ESP of +1.43% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2021 earnings has been stable in the past 30 days and is currently pegged at $1.14 per share. This suggests year-over-year growth of 28%.
The Zacks Consensus Estimate for quarterly revenues is pegged at $1.5 billion, indicating an increase of 11.5% from the prior-year quarter’s levels. Sealed Air has a trailing four-quarter earnings surprise of 6.5%, on average.
The Middleby Corporation (MIDD - Free Report) currently has an Earnings ESP of +3.18% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2021 earnings is currently pegged at $2.07 per share, suggesting 27.8% growth from the year-ago quarter’s tally.
The Zacks Consensus Estimate for quarterly revenues is pinned at $853 million, highlighting year-over-year growth of 16.9%. Middleby has a trailing four-quarter earnings surprise of 4.54%, on average.
MSC Industrial Direct Co., Inc. (MSM - Free Report) currently has an Earnings ESP of +1.45% and a Zacks Rank #3. The Zacks Consensus Estimate for second-quarter fiscal 2022 earnings have undergone upward revisions in the past 30 days and is currently pegged at $1.24 per share. This suggests year-over-year growth of 20.4%.
The Zacks Consensus Estimate for MSC Industrial’s quarterly revenues is pegged at $861 million, indicating year-over-year growth of 11.2%. MSM has a trailing four-quarter earnings surprise of 2.9%, on average.
Image: Bigstock
Deere (DE) to Report Q1 Earnings: Is A Beat in the Cards?
Deere & Company (DE - Free Report) is scheduled to report first-quarter fiscal 2022 results on Feb 18, before the opening bell.
Which Way are the Estimates Trending?
The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $2.28 for the fiscal first quarter, suggesting a decline of 41% year over year. The Zacks Consensus Estimate for total revenues is pinned at $8.09 billion for the period, calling for a year-over-year improvement of 0.52%. Earnings estimates for the fiscal first quarter have moved up in the past 30 days.
Q4 Results
In the last reported quarter, Deere’s earnings and sales increased year over year. The bottom line surpassed the Zacks Consensus Estimate, but the top line missed the same. The company has a trailing four-quarter earnings surprise of 33.5%, on average.
Let’s see how things have shaped up prior to this announcement.
Deere & Company Price and EPS Surprise
Deere & Company price-eps-surprise | Deere & Company Quote
What Does Our Model Indicates?
Our proven model conclusively predicts an earnings beat for Deere this season. The combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Deere is +9.75%.
Zacks Rank: Deere currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors to Consider
Higher agricultural commodity prices and pick-up in farm income have prompted farmers to boost spending on new agricultural equipment and replace the age-old ones. Apart from this, the preference for Deere’s products for their advanced technologies and features will likely reflect on fiscal first-quarter revenues. Robust order book driven by strong production and upbeat commodity prices is likely to have contributed to Deere’s performance during the quarter.
Cost management and benefits from footprint assessment are likely to have boosted the company’s margin in the to-be-reported quarter. However, rising raw material and logistics costs as well as uncertainties regarding the COVID-19 pandemic might have affected quarterly performance.
The Construction & Forestry segment sales are expected to have benefited from strong demand for farm and construction equipment, continued strength in the housing market and increased activity in the oil and gas sector during the fiscal first quarter. Demand for earthmoving and compact construction equipment, particularly in North America, remains strong. Robust lumber demand is anticipated to have aided forestry sales during the quarter under review.
Price Performance
Deere’s shares have gained 23.5% in the past year compared with the industry’s growth of 19.6%.
Stocks Worth a Look
Here are other stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Sealed Air Corporation (SEE - Free Report) currently has an Earnings ESP of +1.43% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2021 earnings has been stable in the past 30 days and is currently pegged at $1.14 per share. This suggests year-over-year growth of 28%.
The Zacks Consensus Estimate for quarterly revenues is pegged at $1.5 billion, indicating an increase of 11.5% from the prior-year quarter’s levels. Sealed Air has a trailing four-quarter earnings surprise of 6.5%, on average.
The Middleby Corporation (MIDD - Free Report) currently has an Earnings ESP of +3.18% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2021 earnings is currently pegged at $2.07 per share, suggesting 27.8% growth from the year-ago quarter’s tally.
The Zacks Consensus Estimate for quarterly revenues is pinned at $853 million, highlighting year-over-year growth of 16.9%. Middleby has a trailing four-quarter earnings surprise of 4.54%, on average.
MSC Industrial Direct Co., Inc. (MSM - Free Report) currently has an Earnings ESP of +1.45% and a Zacks Rank #3. The Zacks Consensus Estimate for second-quarter fiscal 2022 earnings have undergone upward revisions in the past 30 days and is currently pegged at $1.24 per share. This suggests year-over-year growth of 20.4%.
The Zacks Consensus Estimate for MSC Industrial’s quarterly revenues is pegged at $861 million, indicating year-over-year growth of 11.2%. MSM has a trailing four-quarter earnings surprise of 2.9%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.