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John Deere S670 Soybean Sunset

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Deere (NYSE:DE) is scheduled to announce FQ4 earnings results on Wednesday, November 23rd, before market open.

The consensus EPS Estimate is $7.11 (+72.6% Y/Y) and the consensus Revenue Estimate is $13.46B (+30.9% Y/Y).

The Illinois-based industrial company’s stock has significantly outperformed in 2022, rising over 18% in contrast to a 17% decline for the S&P 500.

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Shortly before the results, the company said it would reshore manufacture of harvesters to Louisiana from China. It also received a positive outlook on its credit rating from Moody’s based upon “strong price realization”.

Deere (DE) missed FQ3 earnings expectations and lowered the top end of guidance for full-year net earnings, citing “higher costs and production inefficiencies driven by the difficult supply chain situation”.

Over the last 3 months, EPS estimates have seen 4 upward revisions and 5 downward. Revenue estimates have seen 1 upward revision and 3 downward.

Analysts at Morgan Stanley claim they see a brighter future than many investors forecast for agricultural machinery makers such as Deere (DE) with three overlooked drivers of a “more durable growth path”.

SA contributor Leo Nelissen also forecasts pricing and inflation could become tailwinds in 2023 in a very bullish analysis of the stock ahead of the FQ4 results.

Healthy agriculture demand will continue to be a major driver for Deere’s (DE) upcoming earnings report, but margins will be a key watch item after an unexpected miss in FQ3 according to Stephen Simpson.

Over the last 1 year, DE has beaten EPS estimates 100% of the time and has beaten revenue estimates 75% of the time.


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