Free Annual Reports
Deere Third Quarter Earnings Preview
Tickers in this Article »
DE
Deere (NYSE:DE) is expected to report increased earnings when it releases its third quarter results on Wednesday, August 15, 2012. The consensus estimate is anticipating a profit of $2.32 a share, an increase from last year's $1.69 per share.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: Earnings: Quality Means Everything
What to Expect: Deere is expected to report $2.32 per share, up 37.3% from a year ago when the company reported earnings of $1.69 per share.
Though it hasn't changed in the last month, the consensus estimate is up from $2.13 three months ago. For the fiscal year, analysts are expecting earnings of $8.24 per share.
Deere is expected to report revenue of $9.55 billion for the quarter, beating last year's figure of $7.88 billion by 21.2%. The anticipated revenue for the fiscal year is $34.32 billion.
Company Performance: These last four quarters have marked revenue growth. It increased 18.6% to $10.01 billion in the second quarter. Prior to that, the figure rose 2.8% in the first quarter, 12.6% in the fourth quarter of the last fiscal year and 15.3% in the third quarter of the last fiscal year.
DE is in line with the industry average with a P/E ratio of 11.0. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: Can Investors Trust the P/E Ratio?
The stock price has increased from $77.33 on May 14, 2012 to $78.68 over the past quarter. July 10, 2012 to July 25, 2012 marked one of Deere's worst periods, as the share price fell $4.87.
The Competition: Deere & Company provides products and services for agriculture, forestry, construction, landscaping, and irrigation. Analysts are optimistic about Deere, with nine of 17 assigning it a buy rating. They have grown pessimistic about the stock, as the number of buy ratings has dropped slightly over the past three months.
The company's closest competitor in the constr. and agric. machinery industry is Caterpillar (CAT). Analysts are more optimistic about Deere than about Caterpillar. Only 11 out of 19 analysts rate the latter a buy.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: Earnings: Quality Means Everything
What to Expect: Deere is expected to report $2.32 per share, up 37.3% from a year ago when the company reported earnings of $1.69 per share.
Though it hasn't changed in the last month, the consensus estimate is up from $2.13 three months ago. For the fiscal year, analysts are expecting earnings of $8.24 per share.
Deere is expected to report revenue of $9.55 billion for the quarter, beating last year's figure of $7.88 billion by 21.2%. The anticipated revenue for the fiscal year is $34.32 billion.
Company Performance: These last four quarters have marked revenue growth. It increased 18.6% to $10.01 billion in the second quarter. Prior to that, the figure rose 2.8% in the first quarter, 12.6% in the fourth quarter of the last fiscal year and 15.3% in the third quarter of the last fiscal year.
The stock price has increased from $77.33 on May 14, 2012 to $78.68 over the past quarter. July 10, 2012 to July 25, 2012 marked one of Deere's worst periods, as the share price fell $4.87.
The Competition: Deere & Company provides products and services for agriculture, forestry, construction, landscaping, and irrigation. Analysts are optimistic about Deere, with nine of 17 assigning it a buy rating. They have grown pessimistic about the stock, as the number of buy ratings has dropped slightly over the past three months.
The company's closest competitor in the constr. and agric. machinery industry is Caterpillar (CAT). Analysts are more optimistic about Deere than about Caterpillar. Only 11 out of 19 analysts rate the latter a buy.
by
Investopedia Staff
Investopedia.com believes that individuals can excel at managing their financial affairs. As such, we strive to provide free educational content and tools to empower individual investors, including thousands of original and objective articles and tutorials on a wide variety of financial topics.
Free Annual Reports
