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Deere (DE) to Report Q4 Earnings: What's in the Offing?

Zacks Equity Research
·4 min read

Deere & Company DE is scheduled to report fourth-quarter fiscal 2020 results on Nov 25, before the opening bell.

Which Way are the Estimates Trending?

The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $1.35 for the fiscal fourth quarter, suggesting a 36.9% year-over-year plunge. The Zacks Consensus Estimate for total revenues is pinned at $7.23 billion for the period, indicating a year-over-year decline of 16.9%. The company has a trailing four-quarter average earnings surprise of 36.18%.

Let’s see how things have shaped up prior to this announcement.

Deere & Company Price and EPS Surprise

Deere & Company Price and EPS Surprise
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 +6.44%.

Zacks Rank: Deere currently carries a Zacks Rank of 3.

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 fourth 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 its quarterly performance. Moreover, cost related to the employee-separation program might have hurt the company.

The Zacks Consensus Estimate for the Agriculture and Turf equipment segment’s quarterly net sales is currently pegged at $5,351 million, calling for a decline of 7% from the year-ago period. The Agriculture and Turf equipment segment’s operating income is projected at $419 million, down from the prior-year quarter’s $527 million.

The Zacks Consensus Estimate for the Construction & Forestry segment’s sales is pegged at $2,034 million for the August-October period, suggesting a fall of 31% from the year-earlier quarter – reflecting the impact of the pandemic-induced market uncertainty. The Construction & Forestry segment is estimated to report an operating profit of $58 million, indicating a slump of 77.8%, year on year. The segment is expected to have seen a dismal fiscal fourth quarter.

The Zacks Consensus Estimate for net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) is $7,385 million, calling for a year-over-year decline of 15.1%.

The Zacks Consensus Estimate for the Financial Services segment’s sales is pinned at $988 million, suggesting a 1.8% year-on-year growth. The Zacks Consensus Estimate for the segment’s operating profit is currently pegged at $201 million, indicating a 57% jump from the prior-year quarter.

Price Performance

Deere’s shares have gained 45.2% over the past year, outperforming the industry’s growth of 42.5%.

Other Stocks Worth a Look

Here are some other stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.

Navistar International Corporation NAV has an Earnings ESP of +32.86% and flaunts a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Canadian Imperial Bank of Commerce CM, currently a Zacks #2 Ranked stock, has an Earnings ESP of +11.79%.

Royal Bank of Canada RY has an Earnings ESP of +7.30% and carries a Zacks Rank #3, currently.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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Navistar International Corporation (NAV) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Canadian Imperial Bank of Commerce (CM) : Free Stock Analysis Report
Royal Bank Of Canada (RY) : Free Stock Analysis Report
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