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Deere's (DE) Q2 Earnings Lag Estimates, Revenues In Line

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Deere & Company (DE - Free Report) , the world’s leading manufacturer of agricultural machinery, reported second-quarter fiscal 2018 results, wherein adjusted earnings of $3.14 fell short of the Zacks Consensus Estimate of $3.33.

Revenue: Deere posted revenues of $9.75 billion, which came in-line with the Zacks Consensus Estimate.

Outlook: Deere raised its total equipment sales growth outlook for fiscal 2018 to around 30% year over year from the prior guidance of about 29%. The company expects its sales to rise by 35% in third-quarter fiscal 2018, compared with year-ago periods. Deere stated that Wirtgen acquisition will contribute about 12% to net sales for the fiscal and about 18% for the fiscal third quarter. The forecast also includes a positive foreign-currency translation effect of about 1% for the fiscal and for the third quarter. For fiscal 2018, Deere expects net sales to increase about 26% year over year and projects net income of about $2.3 billion.

Earnings Estimates Revision: The Zacks Consensus Estimate for the fiscal second quarter has moved south over the past 30 days. Coming to earnings surprise history, Deere has an impressive track record. In the past 4 quarters, the company has outpaced the Zacks Consensus Estimate on all occasions, with an average beat of 17.25%.

 

Deere & Company Price and EPS Surprise

 

Deere & Company Price and EPS Surprise | Deere & Company Quote

Zacks Rank: Currently, Deere carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Market Reaction: Deere’s shares lost around 0.8% in pre-market trading following the release, at the time of this write-up.

Check back later for our full write up on Deere earnings report!

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