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Deere (DE) to Report Q3 Earnings: What's in the Offing?

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Deere & Company (DE - Free Report) is scheduled to report third-quarter fiscal 2021 results (ended as of Jul 31, 2021) on Aug 20, before the bell.

Which Way are the Estimates Trending?

The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $4.49 for the fiscal third quarter, suggesting a 74.7% year-over-year jump. The Zacks Consensus Estimate for total revenues is pinned at $10.2 billion for the period, indicating a year-over-year increase of 29.7%. The company has a trailing four-quarter average earnings surprise of 67.9%.

Let’s see how things have shaped up prior to this announcement.

Deere & Company Price and EPS Surprise

Deere & Company Price and EPS Surprise

Deere & Company price-eps-surprise | Deere & Company Quote

Earnings Whispers

Our proven model 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 odds 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 +17.82%.

Zacks Rank: Deere currently carries a Zacks Rank of 2. 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 has prompted farmers to boost their spending on new agricultural equipment and replace the age-old equipment. Apart from this, preference for Deere’s products for their advanced technologies and features will likely reflect on the fiscal third-quarter revenues. Robust order activity driven by elevated grain exports to China is likely to have benefited Deere’s performance during the quarter.

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.

The Construction & Forestry segment sales are expected to have benefited from strength in the housing market, as well recovery in non-residential sector during the fiscal third quarter. Robust lumber demand, particularly in North America, is anticipated to have aided forestry sales during the quarter under review.

Price Performance

Deere’s shares have appreciated 101.2% over the past year, outperforming the industry’s growth of 94.2%.

Zacks Investment Research
Image Source: Zacks Investment Research

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.

ABM Industries Incorporated (ABM - Free Report) has an Earnings ESP of +6.04% and carries a Zacks Rank of 3, at present.

HP Inc. (HPQ - Free Report) , currently a Zacks #3 Ranked stock, has an Earnings ESP of +1.00%.
The Toronto-Dominion Bank (TD - Free Report) has an Earnings ESP of +0.53% and carries a Zacks Rank #3, currently.