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The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $5.16 for the fiscal first quarter, suggesting a decline of 21.2% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $10.3 billion, indicating a year-over-year decrease of 9.8%.
Q4 Results
Deere’s sales and earnings surpassed the Zacks Consensus Estimate in the fourth quarter of fiscal 2023. The bottom line increased year over year, while the top line dipped from the year-ago actuals. On average, the company has a trailing four-quarter earnings surprise of 16.7%.
Our proven model does not conclusively predict an earnings beat for Deere in first-quarter fiscal 2024. 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. But that is not the case here.
Earnings ESP: The Earnings ESP for Deere is 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Deere currently carries a Zacks Rank #3.
Key Factors to Consider
Although agricultural commodity prices have been volatile through the November-January quarter, they were above historical averages. This is expected to 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 is likely to get reflected in its fiscal first-quarter revenues.
However, high production costs; selling, administrative and general expenses; research and development expenses; and the unfavorable impacts of foreign currency exchange are likely to have impacted the company’s margin in the quarter. We expect research and development expenses to rise 0.7% year over year, and selling, administrative and general expenses to increase 3.6% in the quarter.
Moreover, the fiscal first-quarter performance is expected to have been impacted by lower volumes.
Nevertheless, favorable price realization is expected to have negated some of these headwinds, as seen in the fiscal fourth quarter. Also, recently, industry players have noted that supply-chain issues have shown signs of easing, which is likely to have aided Deere's fiscal first-quarter performance.
Segmental Projections
Our model predicts the Production & Precision Agriculture segment’s revenues to be $4.72 billion for the fiscal first quarter, suggesting a year-over-year decrease of 9.2%. We expect the segment’s operating profit to be around $1.02 billion, indicating a 15.7% fall from the prior-year quarter’s reported figure. Gains from price realization are likely to have been somewhat offset by escalated production costs and lower shipment volumes.
Our estimate for the Small Agriculture & Turf segment’s revenues is pegged at $2.61 billion for the fiscal first quarter, indicating a 13.1% decline from the prior-year quarter. The segment’s operating profit is estimated at $340 million, suggesting a 23.8% year-over-year fall. The small Agriculture & Turf segment’s performance is expected to have been affected by elevated production costs, higher research and development and selling, general and administrative expenses, and lower shipment volumes, partially offset by price realization.
The Construction & Forestry segment’s sales are estimated at around $2.9 billion for the fiscal first quarter, down 9.5% from the prior-year quarter’s reported number on lower volume. We predict the segment’s operating profit to rise 15% from the prior-year quarter’s reported figure to $531 million.
Our estimate for the Financial Services segment’s revenues is pegged at $1.15 billion for the fiscal first quarter, up 10.4% from the year-ago quarter. Our projection for the segment’s operating profit is pinned at $235 million, whereas it reported $238 million in the prior-year quarter.
Price Performance
Deere’s shares have lost 5% in the past year compared with the industry’s fall of 10.2%.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some stocks that you might consider, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
American Eagle Outfitters, Inc. (AEO - Free Report) , expected to release fourth quarter 2023 earnings soon, has an Earnings ESP of +2.88 and currently sports a Zacks Rank #1. The company has a trailing four-quarter surprise of 23%, on average.
Eldorado Gold (EGO - Free Report) , scheduled to release fourth-quarter 2023 earnings on Feb 22, currently has an Earnings ESP of +3.53% and a Zacks Rank of 2.
The Zacks Consensus Estimate for EGO’s fourth-quarter earnings is pegged at 20 cents per share. The consensus estimate for the company’s quarterly earnings has moved up 25% in the past 30 days. It has an average trailing four-quarter earnings surprise of 496%.
Costco Wholesale Corporation (COST - Free Report) , scheduled to release earnings on Mar 7, has an Earnings ESP of +1.50.
The Zacks Consensus Estimate for Costco Wholesale’s earnings for the fiscal second quarter of 2024 is pegged at $3.59. COST currently carries a Zacks Rank #2. It has a trailing four-quarter surprise of 2.6%, on average.
Image: Bigstock
Deere (DE) to Report Q1 Earnings: What's in the Offing?
Deere & Company (DE - Free Report) is scheduled to report first-quarter fiscal 2024 results on Feb 15, before the opening bell.
Which Way Are Estimates Trending?
The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $5.16 for the fiscal first quarter, suggesting a decline of 21.2% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $10.3 billion, indicating a year-over-year decrease of 9.8%.
Q4 Results
Deere’s sales and earnings surpassed the Zacks Consensus Estimate in the fourth quarter of fiscal 2023. The bottom line increased year over year, while the top line dipped from the year-ago actuals. On average, the company has a trailing four-quarter earnings surprise of 16.7%.
Deere & Company Price and EPS Surprise
Deere & Company price-eps-surprise | Deere & Company Quote
What Does Our Model Indicate?
Our proven model does not conclusively predict an earnings beat for Deere in first-quarter fiscal 2024. 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. But that is not the case here.
Earnings ESP: The Earnings ESP for Deere is 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Deere currently carries a Zacks Rank #3.
Key Factors to Consider
Although agricultural commodity prices have been volatile through the November-January quarter, they were above historical averages. This is expected to 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 is likely to get reflected in its fiscal first-quarter revenues.
However, high production costs; selling, administrative and general expenses; research and development expenses; and the unfavorable impacts of foreign currency exchange are likely to have impacted the company’s margin in the quarter. We expect research and development expenses to rise 0.7% year over year, and selling, administrative and general expenses to increase 3.6% in the quarter.
Moreover, the fiscal first-quarter performance is expected to have been impacted by lower volumes.
Nevertheless, favorable price realization is expected to have negated some of these headwinds, as seen in the fiscal fourth quarter. Also, recently, industry players have noted that supply-chain issues have shown signs of easing, which is likely to have aided Deere's fiscal first-quarter performance.
Segmental Projections
Our model predicts the Production & Precision Agriculture segment’s revenues to be $4.72 billion for the fiscal first quarter, suggesting a year-over-year decrease of 9.2%. We expect the segment’s operating profit to be around $1.02 billion, indicating a 15.7% fall from the prior-year quarter’s reported figure. Gains from price realization are likely to have been somewhat offset by escalated production costs and lower shipment volumes.
Our estimate for the Small Agriculture & Turf segment’s revenues is pegged at $2.61 billion for the fiscal first quarter, indicating a 13.1% decline from the prior-year quarter. The segment’s operating profit is estimated at $340 million, suggesting a 23.8% year-over-year fall. The small Agriculture & Turf segment’s performance is expected to have been affected by elevated production costs, higher research and development and selling, general and administrative expenses, and lower shipment volumes, partially offset by price realization.
The Construction & Forestry segment’s sales are estimated at around $2.9 billion for the fiscal first quarter, down 9.5% from the prior-year quarter’s reported number on lower volume. We predict the segment’s operating profit to rise 15% from the prior-year quarter’s reported figure to $531 million.
Our estimate for the Financial Services segment’s revenues is pegged at $1.15 billion for the fiscal first quarter, up 10.4% from the year-ago quarter. Our projection for the segment’s operating profit is pinned at $235 million, whereas it reported $238 million in the prior-year quarter.
Price Performance
Deere’s shares have lost 5% in the past year compared with the industry’s fall of 10.2%.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some stocks that you might consider, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
American Eagle Outfitters, Inc. (AEO - Free Report) , expected to release fourth quarter 2023 earnings soon, has an Earnings ESP of +2.88 and currently sports a Zacks Rank #1. The company has a trailing four-quarter surprise of 23%, on average.
The Zacks Consensus Estimate for AEO’s earnings for the fourth quarter is currently pegged at 50 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.
Eldorado Gold (EGO - Free Report) , scheduled to release fourth-quarter 2023 earnings on Feb 22, currently has an Earnings ESP of +3.53% and a Zacks Rank of 2.
The Zacks Consensus Estimate for EGO’s fourth-quarter earnings is pegged at 20 cents per share. The consensus estimate for the company’s quarterly earnings has moved up 25% in the past 30 days. It has an average trailing four-quarter earnings surprise of 496%.
Costco Wholesale Corporation (COST - Free Report) , scheduled to release earnings on Mar 7, has an Earnings ESP of +1.50.
The Zacks Consensus Estimate for Costco Wholesale’s earnings for the fiscal second quarter of 2024 is pegged at $3.59. COST currently carries a Zacks Rank #2. It has a trailing four-quarter surprise of 2.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.