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It's Showtime for Deere

By Seth Jayson - Updated Apr 7, 2017 at 11:41AM

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Checking expectations

Deere (NYSE: DE) is expected to report Q4 earnings on Nov. 21. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Deere's revenues will grow 13.7% and EPS will increase 16.0%.

The average estimate for revenue is $8.99 billion. On the bottom line, the average EPS estimate is $1.88.

Revenue details
Last quarter, Deere recorded revenue of $8.93 billion. GAAP reported sales were 15% higher than the prior-year quarter's $8.37 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $1.98. GAAP EPS of $1.98 for Q3 were 17% higher than the prior-year quarter's $1.69 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 27.5%, 110 basis points worse than the prior-year quarter. Operating margin was 12.3%, 90 basis points worse than the prior-year quarter. Net margin was 8.2%, 30 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $33.85 billion. The average EPS estimate is $7.76.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,714 members out of 2,842 rating the stock outperform, and 128 members rating it underperform. Among 661 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 638 give Deere a green thumbs-up, and 23 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Deere is outperform, with an average price target of $89.82.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Deere & Company Stock Quote
Deere & Company
DE
$361.34 (1.93%) $6.83

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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