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The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $8.12 for the fiscal third quarter, suggesting growth of 31.8% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $14.2 billion, calling for a year-over-year increase of 9.3%.
Q2 Results
Deere’s sales and earnings surpassed the Zacks Consensus Estimate in the second quarter of fiscal 2023. The bottom and top lines increased year over year. On average, the company has a trailing four-quarter earnings surprise of 7.2%.
Our proven model conclusively predicts an earnings beat for Deere for third-quarter fiscal 2023. 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.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Deere is +2.03%.
Although agricultural commodity prices have been volatile through the May-July quarter, they were above historical averages favorable for farmers. 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 on its fiscal third-quarter revenues.
Also, high production costs; selling, administrative and general expenses; research and development expenses; and the unfavorable effects of foreign currency exchange are likely to have impacted the company’s margin in the quarter. We expect research and development expenses to be up 14.8% year over year, and selling, administrative and general expenses to be up 23.4% year over year in the quarter.
Nevertheless, favorable price realization and higher shipment volumes/sales mix are expected to have negated some of these headwinds, as seen in the fiscal first quarter. Also, recently, industry players have noted that supply-chain issues have shown signs of easing, which is likely to have aided Deere’s performance in the quarter.
Segmental Projections
Our model predicts the Production & Precision Agriculture segment’s revenues to be $6,713 million for the fiscal third quarter, suggesting a year-over-year increase of 10.1%. Sales are likely to have been aided by higher shipment volumes and price realization. We expect the segment’s operating profit to be $1,461 million, indicating a 13% rise from the prior-year quarter’s reported figure. Gains from higher shipment volumes and price realization are likely to have been somewhat offset by escalated production costs, and higher R&D and SA&G expenses.
Our estimate for the Small Agriculture & Turf segment’s revenues is pegged at $3,671 million for the fiscal third quarter, indicating 1% growth from the prior-year quarter. The segment’s operating profit is estimated at $399 million, suggesting 27.8% year-over-year growth. The segment’s performance is expected to have been driven by price realization and improved shipment volumes, partially offset by elevated production costs, higher R&D and SA&G expenses, and the unfavorable effects of foreign exchange.
The Construction & Forestry segment’s sales are estimated at $3,613 million for the fiscal third quarter, up 10.5% from the prior-year quarter’s reported number on strong demand. We predict the segment’s operating profit to rise 10.6% from the prior-year quarter’s reported figure to $569 million.
Our estimate for the Financial Services segment’s revenues is pegged at $1,187 million for the fiscal third quarter, up 31.5% from the year-ago quarter. Our projection for the segment’s operating profit is pinned at $259 million, whereas it reported $287 million in the prior-year quarter.
Price Performance
Deere’s shares have gained 20.3% in the past year compared with the industry’s growth of 18.1%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Here are some other stocks, which you might consider, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases.
America's Car-Mart, Inc. (CRMT - Free Report) is scheduled to release its first-quarter fiscal 2024 results on Sep 5. It has an Earnings ESP of +17.75% and a Zacks Rank #2 at present.
The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at 98 cents per share, suggesting a decline of 51% from the prior-year quarter’s reported figure.
Embraer S.A. (ERJ - Free Report) is set to report second-quarter 2023 results on Aug 14. ERJ has an Earnings ESP of +25% and a Zacks Rank #3 at present. The Zacks Consensus Estimate is pegged at earnings of 12 cents per share, suggesting a decrease of 42.3% from the prior-year period’s reported figure.
Cardinal Health, Inc. (CAH - Free Report) is set to report its fourth-quarter fiscal 2023 results on Aug 15. It has an Earnings ESP of +0.10% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for CAH’s earnings is pegged at $1.48 per share, suggesting an increase of 40.9% from the prior-year period’s reported figure.
Image: Bigstock
Deere (DE) to Report Q3 Earnings: What's in the Offing?
Deere & Company (DE - Free Report) is scheduled to report third-quarter fiscal 2023 results on Aug 18, before the opening bell.
Which Way Are Estimates Trending?
The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $8.12 for the fiscal third quarter, suggesting growth of 31.8% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $14.2 billion, calling for a year-over-year increase of 9.3%.
Q2 Results
Deere’s sales and earnings surpassed the Zacks Consensus Estimate in the second quarter of fiscal 2023. The bottom and top lines increased year over year. On average, the company has a trailing four-quarter earnings surprise of 7.2%.
Deere & Company Price and EPS Surprise
Deere & Company price-eps-surprise | Deere & Company Quote
What Does Our Model Indicate?
Our proven model conclusively predicts an earnings beat for Deere for third-quarter fiscal 2023. 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.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Deere is +2.03%.
Zacks Rank: Deere currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors to Consider
Although agricultural commodity prices have been volatile through the May-July quarter, they were above historical averages favorable for farmers. 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 on its fiscal third-quarter revenues.
Also, high production costs; selling, administrative and general expenses; research and development expenses; and the unfavorable effects of foreign currency exchange are likely to have impacted the company’s margin in the quarter. We expect research and development expenses to be up 14.8% year over year, and selling, administrative and general expenses to be up 23.4% year over year in the quarter.
Nevertheless, favorable price realization and higher shipment volumes/sales mix are expected to have negated some of these headwinds, as seen in the fiscal first quarter. Also, recently, industry players have noted that supply-chain issues have shown signs of easing, which is likely to have aided Deere’s performance in the quarter.
Segmental Projections
Our model predicts the Production & Precision Agriculture segment’s revenues to be $6,713 million for the fiscal third quarter, suggesting a year-over-year increase of 10.1%. Sales are likely to have been aided by higher shipment volumes and price realization. We expect the segment’s operating profit to be $1,461 million, indicating a 13% rise from the prior-year quarter’s reported figure. Gains from higher shipment volumes and price realization are likely to have been somewhat offset by escalated production costs, and higher R&D and SA&G expenses.
Our estimate for the Small Agriculture & Turf segment’s revenues is pegged at $3,671 million for the fiscal third quarter, indicating 1% growth from the prior-year quarter. The segment’s operating profit is estimated at $399 million, suggesting 27.8% year-over-year growth. The segment’s performance is expected to have been driven by price realization and improved shipment volumes, partially offset by elevated production costs, higher R&D and SA&G expenses, and the unfavorable effects of foreign exchange.
The Construction & Forestry segment’s sales are estimated at $3,613 million for the fiscal third quarter, up 10.5% from the prior-year quarter’s reported number on strong demand. We predict the segment’s operating profit to rise 10.6% from the prior-year quarter’s reported figure to $569 million.
Our estimate for the Financial Services segment’s revenues is pegged at $1,187 million for the fiscal third quarter, up 31.5% from the year-ago quarter. Our projection for the segment’s operating profit is pinned at $259 million, whereas it reported $287 million in the prior-year quarter.
Price Performance
Deere’s shares have gained 20.3% in the past year compared with the industry’s growth of 18.1%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Here are some other stocks, which you might consider, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases.
America's Car-Mart, Inc. (CRMT - Free Report) is scheduled to release its first-quarter fiscal 2024 results on Sep 5. It has an Earnings ESP of +17.75% and a Zacks Rank #2 at present.
The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at 98 cents per share, suggesting a decline of 51% from the prior-year quarter’s reported figure.
Embraer S.A. (ERJ - Free Report) is set to report second-quarter 2023 results on Aug 14. ERJ has an Earnings ESP of +25% and a Zacks Rank #3 at present. The Zacks Consensus Estimate is pegged at earnings of 12 cents per share, suggesting a decrease of 42.3% from the prior-year period’s reported figure.
Cardinal Health, Inc. (CAH - Free Report) is set to report its fourth-quarter fiscal 2023 results on Aug 15. It has an Earnings ESP of +0.10% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for CAH’s earnings is pegged at $1.48 per share, suggesting an increase of 40.9% from the prior-year period’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.