Deere & Co. (DE, $168.06) beats fiscal Q4 estimates; predicts decline in 2020 agricultural equipment sales
Deere & Co. beat fourth quarter earnings expectations, but warned about a potential slide in construction and agricultural equipment sales in the coming financial year amid trade uncertainty.
The agricultural, construction, and forestry equipment maker’s adjusted earnings for the three months ending in October came in at $2.14 per share, one penny ahead of analysts’ expectations. The figure, however, was -11.6% lower from the year-ago quarter.
Net revenues increased +5% to $9.896 billion, surpassing analysts' forecast of $8.43 billion.
Looking ahead, Deere projects fiscal 2020 full-year agricultural equipment sales to fall between -5% and -10%, and construction equipment sales to decline by as much as -15%.
CEO John May indicated that trade tensions along with a year of challenging growing and harvesting conditions have led to many farmers becoming cautious about making major investments in new equipment. May also added that financial services results have come under pressure due to operating-lease losses.
According to May, general economic conditions have nonetheless remained favorable, thereby supporting demand for smaller equipment. It has helped Deere's construction and forestry business, which had a record year for sales and operating profit.
DE in downward trend: 10-day moving average moved below 50-day moving average on March 31, 2025
The 10-day moving average for DE crossed bearishly below the 50-day moving average on March 31, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
DE moved below its 50-day moving average on April 02, 2025 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for DE entered a downward trend on April 14, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where DE's RSI Oscillator exited the oversold zone, of 21 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 17, 2025. You may want to consider a long position or call options on DE as a result. In of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for DE just turned positive on April 14, 2025. Looking at past instances where DE's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DE advanced for three days, in of 344 cases, the price rose further within the following month. The odds of a continued upward trend are .
DE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: DE's P/B Ratio (5.097) is slightly higher than the industry average of (2.046). P/E Ratio (11.779) is within average values for comparable stocks, (21.903). Projected Growth (PEG Ratio) (2.316) is also within normal values, averaging (2.737). Dividend Yield (0.014) settles around the average of (0.055) among similar stocks. P/S Ratio (1.957) is also within normal values, averaging (127.366).
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General Information
a manufacturer of agricultural, industrial, commercial and consumer equipment
Industry TrucksConstructionFarmMachinery