40 år i branschen
185 800 kunder världen över
15 000 marknader

Deere & Co report due Wednesday

Deere & Co is due to report its third-quarter results on Wednesday 13 August. The consensus is for earnings per share of $2.22 and revenue of $8.92 billion.

Deere & Co logo
Source: Bloomberg

Deere & Co is trading at $85.40. The stock is down 8.8% since it revealed its second-quarter earnings in May, when revenues missed expectations but EPS exceeded estimates. The company also lowered its full earnings forecast. Falling agricultural commodity prices have stemmed the sales of farm machinery - in 2013 over 75% of Deere & Co’s revenue came from agricultural machinery sales. Sales from forestry and construction equipment account for 16% of the company’s income. An upturn in the US housing market has prompted the company to increase its sales forecast for construction equipment.

Recently Caterpillar posted a rise in profits but a decline in revenues. The company also adjusted its full-year sales forecast lower, citing a slowdown in Chinese construction as one of the factors. Year-to-date, Deere & Co is down 6.3% while Caterpillar is up 13% over the same period.

There are similarities between the two, but keep in mind Deere & Co is more farming-focused while Caterpillar is more mining-focused. Equity analysts are relatively neutral on Deere & Co; out of the 24 ratings, four are buys, 15 are holds and five are sells. The stock is receiving support at the $84 level. Good figures and a positive outlook could put the stock on a path to $88.34.

Denna information har sammanställts av IG, ett handelsnamn för IG Markets Limited. Utöver friskrivningen nedan innehåller materialet på denna sida inte ett fastställande av våra handelspriser, eller ett erbjudande om en transaktion i ett finansiellt instrument. IG accepterar inget ansvar för eventuella åtgärder som görs eller inte görs baserat på detta material eller för de följder detta kan få. Inga garantier ges för riktigheten eller fullständigheten av denna information. Någon person som agerar på informationen gör det således på egen risk. Materialet tar inte hänsyn till specifika placeringsmål, ekonomiska situationer och behov av någon specifik person som får ta del av detta. Det har inte upprättats i enlighet med rättsliga krav som ställs för att främja oberoende investeringsanalyser utan skall betraktas som marknadsföringsmaterial.