What to Expect from Deere's Earnings

Deere DE is preparing to release its quarterly earnings on Thursday, 2024-11-21. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Deere to report an earnings per share (EPS) of $3.87.

Investors in Deere are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings Track Record

The company's EPS beat by $0.52 in the last quarter, leading to a 1.25% increase in the share price on the following day.

Here's a look at Deere's past performance and the resulting price change:

Deere Share Price Analysis

Shares of Deere were trading at $400.09 as of November 19. Over the last 52-week period, shares are up 8.08%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Deere

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Deere.

With 4 analyst ratings, Deere has a consensus rating of Neutral. The average one-year price target is $440.25, indicating a potential 10.04% upside.

Analyzing Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Toro, AGCO and Alamo Group, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Toro is maintaining an Neutral status according to analysts, with an average 1-year price target of $95.5, indicating a potential 76.13% downside.
• AGCO received a Neutral consensus from analysts, with an average 1-year price target of $109.25, implying a potential 72.69% downside.
• Alamo Group is maintaining an Buy status according to analysts, with an average 1-year price target of $212.0, indicating a potential 47.01% downside.

Peer Metrics Summary

The peer analysis summary provides a snapshot of key metrics for Toro, AGCO and Alamo Group, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Deere ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

All You Need to Know About Deere

Deere is the world's leading manufacturer of agricultural equipment, producing some of the most recognizable machines in the heavy machinery industry in their green and yellow livery. The company is divided into four reportable segments: production and precision agriculture, small agriculture and turf, construction and forestry, and John Deere Capital. Its products are available through an extensive dealer network, which includes over 2,000 dealer locations in North America and approximately 3,700 locations globally. John Deere Capital provides retail financing for machinery to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Deere product sales.

Key Indicators: Deere's Financial Health

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Deere's revenue growth over a period of 3 months has faced challenges. As of 31 July, 2024, the company experienced a revenue decline of approximately -17.31%. This indicates a decrease in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 13.5%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Deere's ROE stands out, surpassing industry averages. With an impressive ROE of 7.58%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Deere's ROA stands out, surpassing industry averages. With an impressive ROA of 1.62%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Deere's debt-to-equity ratio surpasses industry norms, standing at 2.87. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for Deere visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.