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Deere & Company (DE) Beats Earnings, Revenues in Q4
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Deere & Company (DE - Free Report) is the world’s leading manufacturer of agricultural machinery with a market capitalization of $28.93 billion. It also produces a variety of commercial and consumer equipment; and a broad range of construction and forestry equipment. Deere’s financial services primarily provide credit services, which mainly finance sales and leases of equipment by John Deere dealers and trade receivables purchased from the equipment operations.
The company, best known for its John Deere tractors, has been challenged with falling demand for agricultural equipment as lower crop prices take their toll on the U.S farm income. Nevertheless, in the long term the company stands to gain from favorable trends, supported by increasing population and rising living standards. Focus on investments in new products and geographies also remain tailwinds. An increase in non-residential construction spending activity and improvement in political conditions in Brazil will lead to better results. Further, favorable raw material costs as well as lower research and development, and selling, administrative and general expenses will boost margins.
Investors have thus been eagerly awaiting the company’s latest earnings report. Let’s have a quick look at the Illinois-based company’s fourth-quarter fiscal 2016 earnings release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Deere for the fourth quarter fiscal 2016 has been remained stable over the past week and month. Coming to the earnings surprise, Deere has outpaced the Zacks Consensus Estimate in the trailing 4 quarters with an average beat of around 32.16%.
Deere posted earnings of 90 cents per share in the fourth quarter, beating the Zacks Consensus Estimate of 36 cents by a wide margin of 150%.
Revenues
Deere reported fourth quarter revenues from equipment operations of $5.650 billion, beating the Zacks Consensus Estimate of $5.354 billion.
Outlook
Deere projects total equipment sales to decline 1% year over year in fiscal 2017 and decline 4% in the first quarter of fiscal 2017, compared with year-ago periods. The projection includes a positive currency-translation effect of about 1% for the full year and 2% for the first quarter. For fiscal 2017, Deere expects net sales to dip 1% year over year and projects net income at $1.4 billion.
Zacks Rank
Currently, Deere has a Zacks Rank #2 (Buy) but that could change following Deere’s earnings report which was just released.
Market Reaction
Deere shares gained 2.85% in pre-market trading.
Check back later for our full write up on this Deere earnings report later!
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Deere & Company (DE) Beats Earnings, Revenues in Q4
Deere & Company (DE - Free Report) is the world’s leading manufacturer of agricultural machinery with a market capitalization of $28.93 billion. It also produces a variety of commercial and consumer equipment; and a broad range of construction and forestry equipment. Deere’s financial services primarily provide credit services, which mainly finance sales and leases of equipment by John Deere dealers and trade receivables purchased from the equipment operations.
The company, best known for its John Deere tractors, has been challenged with falling demand for agricultural equipment as lower crop prices take their toll on the U.S farm income. Nevertheless, in the long term the company stands to gain from favorable trends, supported by increasing population and rising living standards. Focus on investments in new products and geographies also remain tailwinds. An increase in non-residential construction spending activity and improvement in political conditions in Brazil will lead to better results. Further, favorable raw material costs as well as lower research and development, and selling, administrative and general expenses will boost margins.
Investors have thus been eagerly awaiting the company’s latest earnings report. Let’s have a quick look at the Illinois-based company’s fourth-quarter fiscal 2016 earnings release.
Estimate Trend & Surprise History
Investors should note that the earnings estimate for Deere for the fourth quarter fiscal 2016 has been remained stable over the past week and month. Coming to the earnings surprise, Deere has outpaced the Zacks Consensus Estimate in the trailing 4 quarters with an average beat of around 32.16%.
DEERE & CO Price and EPS Surprise
DEERE & CO Price and EPS Surprise | DEERE & CO Quote
Earnings
Deere posted earnings of 90 cents per share in the fourth quarter, beating the Zacks Consensus Estimate of 36 cents by a wide margin of 150%.
Revenues
Deere reported fourth quarter revenues from equipment operations of $5.650 billion, beating the Zacks Consensus Estimate of $5.354 billion.
Outlook
Deere projects total equipment sales to decline 1% year over year in fiscal 2017 and decline 4% in the first quarter of fiscal 2017, compared with year-ago periods. The projection includes a positive currency-translation effect of about 1% for the full year and 2% for the first quarter. For fiscal 2017, Deere expects net sales to dip 1% year over year and projects net income at $1.4 billion.
Zacks Rank
Currently, Deere has a Zacks Rank #2 (Buy) but that could change following Deere’s earnings report which was just released.
Market Reaction
Deere shares gained 2.85% in pre-market trading.
Check back later for our full write up on this Deere earnings report later!
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>