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Deere (DE) to Report Q2 Earnings: What's in the Cards?
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Deere & Company (DE - Free Report) is scheduled to report second-quarter fiscal 2021 results (ended as of Apr 30, 2021) on May 21, before the bell.
Which Way are the Estimates Trending?
The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $4.46 for the fiscal second quarter, suggesting 111.4% year-over-year growth. The Zacks Consensus Estimate for total revenues is pinned at $10.54 billion for the period, indicating a year-over-year increase of 28.11%. The company has a trailing four-quarter average earnings surprise of 65.72%.
Let’s see how things have shaped up prior to this announcement.
Key Factors to Consider
Replacement demand for old equipment, increased spending on agricultural equipment owing to pick-up in farm income, improved agricultural commodity prices as well as preference for Deere’s products given their advanced technologies and features will likely reflect on quarterly revenues. Cost management and benefits from footprint assessment are likely to have boosted the company’s margin during the to-be-reported quarter. However, rising input costs as well as uncertainties regarding the COVID-19 pandemic might have affected its quarterly performance.
Construction & Forestry segment sales are likely to have benefited from stabilization in the construction and forestry markets and increased sales from construction equipment during the fiscal second quarter. End markets for earth-moving and compact equipment have been gaining on strength in the housing market, and a modest recovery in the oil and gas sector. Moreover, recovery in lumber demand, particularly in North America, is anticipated to have aided forestry sales during the quarter under review.
The company is witnessing encouraging demand for compact utility tractors and turf equipment as consumers continue to focus on home and landscape projects. These are likely to have boosted large and small agricultural & Turf equipment sales in the United States and Canada.
Our proven model doesn’t conclusively predict 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 odds of an earnings beat. But that’s not the case here.
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 -6.75%.
Zacks Rank: Deere currently carries a Zacks Rank of 2.
Price Performance
Deere’s shares have appreciated 182.3% over the past year, outperforming the industry’s growth of 173.7%.
Other Stocks Worth a Look
Here are some other stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.
Canadian Imperial Bank of Commerce (CM - Free Report) , currently a Zacks #2 Ranked stock, has an Earnings ESP of +4.17%.
Royal Bank of Canada (RY - Free Report) has an Earnings ESP of +4.01% and carries a Zacks Rank #2, currently.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Deere (DE) to Report Q2 Earnings: What's in the Cards?
Deere & Company (DE - Free Report) is scheduled to report second-quarter fiscal 2021 results (ended as of Apr 30, 2021) on May 21, before the bell.
Which Way are the Estimates Trending?
The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $4.46 for the fiscal second quarter, suggesting 111.4% year-over-year growth. The Zacks Consensus Estimate for total revenues is pinned at $10.54 billion for the period, indicating a year-over-year increase of 28.11%. The company has a trailing four-quarter average earnings surprise of 65.72%.
Let’s see how things have shaped up prior to this announcement.
Key Factors to Consider
Replacement demand for old equipment, increased spending on agricultural equipment owing to pick-up in farm income, improved agricultural commodity prices as well as preference for Deere’s products given their advanced technologies and features will likely reflect on quarterly revenues. Cost management and benefits from footprint assessment are likely to have boosted the company’s margin during the to-be-reported quarter. However, rising input costs as well as uncertainties regarding the COVID-19 pandemic might have affected its quarterly performance.
Construction & Forestry segment sales are likely to have benefited from stabilization in the construction and forestry markets and increased sales from construction equipment during the fiscal second quarter. End markets for earth-moving and compact equipment have been gaining on strength in the housing market, and a modest recovery in the oil and gas sector. Moreover, recovery in lumber demand, particularly in North America, is anticipated to have aided forestry sales during the quarter under review.
The company is witnessing encouraging demand for compact utility tractors and turf equipment as consumers continue to focus on home and landscape projects. These are likely to have boosted large and small agricultural & Turf equipment sales in the United States and Canada.
Deere & Company Price and EPS Surprise
Deere & Company price-eps-surprise | Deere & Company Quote
Earnings Whispers
Our proven model doesn’t conclusively predict 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 odds of an earnings beat. But that’s not the case here.
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 -6.75%.
Zacks Rank: Deere currently carries a Zacks Rank of 2.
Price Performance
Deere’s shares have appreciated 182.3% over the past year, outperforming the industry’s growth of 173.7%.
Other Stocks Worth a Look
Here are some other stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.
Bank of Montreal (BMO - Free Report) has an Earnings ESP of +12.60% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Canadian Imperial Bank of Commerce (CM - Free Report) , currently a Zacks #2 Ranked stock, has an Earnings ESP of +4.17%.
Royal Bank of Canada (RY - Free Report) has an Earnings ESP of +4.01% and carries a Zacks Rank #2, currently.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>