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Deere (DE) to Report Q3 Earnings: What's in the Offing?
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Deere & Company (DE - Free Report) is scheduled to report third-quarter fiscal 2020 results on Aug 21, before the opening bell.
Which Way are the Estimates Trending?
The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $1.26 for the fiscal third quarter, suggesting a 53.5% year-over-year plunge. The Zacks Consensus Estimate for total revenues is pegged at $6.58 billion for the period, indicating a year-over-year decline of 26.6%. The company beat estimates in three of the trailing four quarters, the average beat being 10.95%.
Let’s see how things have shaped up prior to this announcement.
Our proven model conclusively predicts an earnings beat for Deere this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Deere is +18.05%. This is because currently the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.46 per share and $1.23 per share, respectively.
Zacks Rank: Deere currently flaunts a Zacks Rank of 1.
Key Factors to Consider
Replacement demand for old equipment, increased spending on agricultural equipment as well as demand for Deere’s products with advanced technologies and features will likely reflect on the fiscal third quarter’s revenue numbers. Cost management, footprint assessment are likely to have supported the company’s margin during the to-be-reported quarter. However, uncertainties regarding the COVID-19 pandemic might have affected the company's quarterly performance.
The Zacks Consensus Estimate for the Agriculture and Turf equipment segment’s quarterly net sales for the to-be-reported quarter is currently pegged at $5,085 million, calling for a decline of 14.5% from the year-ago quarter. The Agriculture and Turf equipment segment’s operating income is projected at $417 million, down from the prior-year quarter’s $612 million.
The Zacks Consensus Estimate for the Construction & Forestry segment’s sales is pegged at $1,524 million for the May-July period, suggesting a fall of 49.6% from the year-earlier quarter. The Construction & Forestry segment is estimated to report an operating profit of $27.6 million, indicating a slump of 92.7%, year on year. The segment is anticipated to have seen a dismal fiscal third quarter due to sluggish construction activity, pandemic-induced market uncertainty and weak demand.
The Zacks Consensus Estimate for net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) is $6,609 million, calling for a year-over-year decline of 26.3% . The Zacks Consensus Estimate for the Financial Services segment’s sales is pinned at $910 million, flat year on year. The Zacks Consensus Estimate for the segment’s operating profit is currently pegged at $181 million, indicating a fall of 11.3% from the prior-year quarter.
Price Performance
Deere’s shares have gained 26.7% over the past year, outperforming the industry’s growth of 23.5%.
Other Stocks Worth a Look
Here are some other stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Bank of Montreal (BMO - Free Report) has an Earnings ESP of +7.73% and carries a Zacks Rank #3, currently.
Bill.com Holdings, Inc. (BILL - Free Report) , currently a Zacks #3 Ranked stock, has an Earnings ESP of +10.45%.
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Deere (DE) to Report Q3 Earnings: What's in the Offing?
Deere & Company (DE - Free Report) is scheduled to report third-quarter fiscal 2020 results on Aug 21, before the opening bell.
Which Way are the Estimates Trending?
The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $1.26 for the fiscal third quarter, suggesting a 53.5% year-over-year plunge. The Zacks Consensus Estimate for total revenues is pegged at $6.58 billion for the period, indicating a year-over-year decline of 26.6%. The company beat estimates in three of the trailing four quarters, the average beat being 10.95%.
Let’s see how things have shaped up prior to this announcement.
Deere Company Price and EPS Surprise
Deere Company price-eps-surprise | Deere Company Quote
Earnings Whispers
Our proven model conclusively predicts an earnings beat for Deere this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Deere is +18.05%. This is because currently the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.46 per share and $1.23 per share, respectively.
Zacks Rank: Deere currently flaunts a Zacks Rank of 1.
Key Factors to Consider
Replacement demand for old equipment, increased spending on agricultural equipment as well as demand for Deere’s products with advanced technologies and features will likely reflect on the fiscal third quarter’s revenue numbers. Cost management, footprint assessment are likely to have supported the company’s margin during the to-be-reported quarter. However, uncertainties regarding the COVID-19 pandemic might have affected the company's quarterly performance.
The Zacks Consensus Estimate for the Agriculture and Turf equipment segment’s quarterly net sales for the to-be-reported quarter is currently pegged at $5,085 million, calling for a decline of 14.5% from the year-ago quarter. The Agriculture and Turf equipment segment’s operating income is projected at $417 million, down from the prior-year quarter’s $612 million.
The Zacks Consensus Estimate for the Construction & Forestry segment’s sales is pegged at $1,524 million for the May-July period, suggesting a fall of 49.6% from the year-earlier quarter. The Construction & Forestry segment is estimated to report an operating profit of $27.6 million, indicating a slump of 92.7%, year on year. The segment is anticipated to have seen a dismal fiscal third quarter due to sluggish construction activity, pandemic-induced market uncertainty and weak demand.
The Zacks Consensus Estimate for net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) is $6,609 million, calling for a year-over-year decline of 26.3%
.
The Zacks Consensus Estimate for the Financial Services segment’s sales is pinned at $910 million, flat year on year. The Zacks Consensus Estimate for the segment’s operating profit is currently pegged at $181 million, indicating a fall of 11.3% from the prior-year quarter.
Price Performance
Deere’s shares have gained 26.7% over the past year, outperforming the industry’s growth of 23.5%.
Other Stocks Worth a Look
Here are some other stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Autodesk, Inc. (ADSK - Free Report) has an Earnings ESP of +4.44% and holds a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bank of Montreal (BMO - Free Report) has an Earnings ESP of +7.73% and carries a Zacks Rank #3, currently.
Bill.com Holdings, Inc. (BILL - Free Report) , currently a Zacks #3 Ranked stock, has an Earnings ESP of +10.45%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>