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