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The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $8.51 for the fiscal second quarter, suggesting growth of 25% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $14.78 billion, calling for a year-over-year increase of 22.8%. Earnings estimates for the fiscal first quarter have moved 0.2% north in the past 60 days.
Q1 Results
Deere’s sales and earnings surpassed the Zacks Consensus Estimate in the first quarter of fiscal 2023. Both bottom and top lines increased year over year. On average, the company has a trailing four-quarter earnings surprise of 4.7%.
Our proven model conclusively predicts an earnings beat for Deere for second-quarter fiscal 2023. 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 before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Deere is +6.75%.
Favorable farm fundamentals have prompted farmers to boost spending on new agricultural equipment and replace the old ones. The preference for Deere’s products for their advanced technologies and features will likely reflect on fiscal second-quarter revenues.
Factors such as supply-chain issues; high production costs; selling, administrative and general expenses; research and development expenses; and the unfavorable effects of foreign currency exchange are likely to have impacted the company’s margin in the quarter. Nevertheless, favorable price realization and higher shipment volumes/sales mix are expected to have negated some of these headwinds, as seen in the fiscal first quarter.
Segmental Estimates
The Zacks Consensus Estimate for the Production & Precision Agriculture segment’s revenues is pegged at $5,367 million for the fiscal first quarter, suggesting a year-over-year increase of 43.3%. Sales are likely to have been aided by higher shipment volumes and price realization. The Zacks Consensus Estimate for the segment’s operating profit is pegged at $1,818 million, suggesting a 72% rise from $1,057 million reported in the prior-year quarter. Gains from higher shipment volumes and price realization are likely to have been somewhat offset by escalated production costs, and higher R&D and SA&G expenses.
The Zacks Consensus Estimate for the Small Agriculture & Turf segment’s revenues is pegged at $3,727 million for the fiscal first quarter, indicating 4.4% growth from the prior-year quarter. The segment’s operating profit is estimated at $567 million, suggesting 9% year-over-year growth. The segment’s performance is expected to have been driven by price realization and improved shipment volumes, partially offset by elevated production costs, higher R&D and SA&G expenses, and the unfavorable effects of foreign exchange.
The Construction & Forestry segment’s sales are estimated at $3,729 million for the fiscal first quarter, up 11.4% from the prior-year quarter’s reported number on strong demand. The segment’s operating profit is expected to fall 16.1% from the prior-year quarter’s reported figure to $683 million.
The Zacks Consensus Estimate for the Financial Services segment’s revenues is pegged at $1035 million for the fiscal first quarter, up 19.8% from the year-ago quarter. The Zacks Consensus Estimate for the segment’s operating profit is pegged at $279 million compared with the prior-year quarter’s reported figure of $268 million.
Price Performance
Deere’s shares have gained 4.5% in the past year compared with the industry’s growth of 3.8%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Here are some other stocks, which you might consider, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases.
Bitfarms (BITF - Free Report) is scheduled to release its first-quarter 2023 results on May 15. It has an Earnings ESP of +180.00% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for first-quarter earnings is pegged at a loss of 3 cents per share, suggesting a decline of 250% from the prior-year quarter’s reported figure.
Centerra Gold (CGAU - Free Report) is set to report first-quarter fiscal 2023 results on May 15. CGAU has an Earnings ESP of +192.31% and carries a Zacks Rank #2 at present. The Zacks Consensus Estimate is pegged at a loss of 4 cents per share, suggesting a decrease of 121.05% from the prior-year period’s reported figure.
Cisco (CSCO - Free Report) is set to report its third-quarter fiscal 2023 results on May 17. It has an Earnings ESP of +1.59% and carries a Zacks Rank #3 at present. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 97 cents per share, suggesting an increase of 11.49% from the prior-year period’s reported figure.
Image: Bigstock
Deere (DE) to Report Q2 Earnings: What's in the Offing?
Deere & Company (DE - Free Report) is scheduled to report second-quarter fiscal 2023 results on May 19, before the opening bell.
Which Way Are the Estimates Trending?
The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $8.51 for the fiscal second quarter, suggesting growth of 25% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $14.78 billion, calling for a year-over-year increase of 22.8%. Earnings estimates for the fiscal first quarter have moved 0.2% north in the past 60 days.
Q1 Results
Deere’s sales and earnings surpassed the Zacks Consensus Estimate in the first quarter of fiscal 2023. Both bottom and top lines increased year over year. On average, the company has a trailing four-quarter earnings surprise of 4.7%.
Deere & Company Price and EPS Surprise
Deere & Company price-eps-surprise | Deere & Company Quote
What Does Our Model Indicate?
Our proven model conclusively predicts an earnings beat for Deere for second-quarter fiscal 2023. 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 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors to Consider
Favorable farm fundamentals have prompted farmers to boost spending on new agricultural equipment and replace the old ones. The preference for Deere’s products for their advanced technologies and features will likely reflect on fiscal second-quarter revenues.
Factors such as supply-chain issues; high production costs; selling, administrative and general expenses; research and development expenses; and the unfavorable effects of foreign currency exchange are likely to have impacted the company’s margin in the quarter. Nevertheless, favorable price realization and higher shipment volumes/sales mix are expected to have negated some of these headwinds, as seen in the fiscal first quarter.
Segmental Estimates
The Zacks Consensus Estimate for the Production & Precision Agriculture segment’s revenues is pegged at $5,367 million for the fiscal first quarter, suggesting a year-over-year increase of 43.3%. Sales are likely to have been aided by higher shipment volumes and price realization. The Zacks Consensus Estimate for the segment’s operating profit is pegged at $1,818 million, suggesting a 72% rise from $1,057 million reported in the prior-year quarter. Gains from higher shipment volumes and price realization are likely to have been somewhat offset by escalated production costs, and higher R&D and SA&G expenses.
The Zacks Consensus Estimate for the Small Agriculture & Turf segment’s revenues is pegged at $3,727 million for the fiscal first quarter, indicating 4.4% growth from the prior-year quarter. The segment’s operating profit is estimated at $567 million, suggesting 9% year-over-year growth. The segment’s performance is expected to have been driven by price realization and improved shipment volumes, partially offset by elevated production costs, higher R&D and SA&G expenses, and the unfavorable effects of foreign exchange.
The Construction & Forestry segment’s sales are estimated at $3,729 million for the fiscal first quarter, up 11.4% from the prior-year quarter’s reported number on strong demand. The segment’s operating profit is expected to fall 16.1% from the prior-year quarter’s reported figure to $683 million.
The Zacks Consensus Estimate for the Financial Services segment’s revenues is pegged at $1035 million for the fiscal first quarter, up 19.8% from the year-ago quarter. The Zacks Consensus Estimate for the segment’s operating profit is pegged at $279 million compared with the prior-year quarter’s reported figure of $268 million.
Price Performance
Deere’s shares have gained 4.5% in the past year compared with the industry’s growth of 3.8%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Here are some other stocks, which you might consider, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases.
Bitfarms (BITF - Free Report) is scheduled to release its first-quarter 2023 results on May 15. It has an Earnings ESP of +180.00% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for first-quarter earnings is pegged at a loss of 3 cents per share, suggesting a decline of 250% from the prior-year quarter’s reported figure.
Centerra Gold (CGAU - Free Report) is set to report first-quarter fiscal 2023 results on May 15. CGAU has an Earnings ESP of +192.31% and carries a Zacks Rank #2 at present. The Zacks Consensus Estimate is pegged at a loss of 4 cents per share, suggesting a decrease of 121.05% from the prior-year period’s reported figure.
Cisco (CSCO - Free Report) is set to report its third-quarter fiscal 2023 results on May 17. It has an Earnings ESP of +1.59% and carries a Zacks Rank #3 at present. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 97 cents per share, suggesting an increase of 11.49% from the prior-year period’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.