Deere (DE, $147.81) misses Q2 earnings estimates; lowers full-year outlook on trade uncertainties
Deere & Co. reported its third quarter earnings that came in lower than expected by analysts. The company also lowered guidance on its full year sales and profit.
The farm equipment maker’s earnings in the quarter increased +4.6% year-over-year to $2.71 per share, but fell short of the Street estimate by 13 cents.
But total revenues climbed +3% from last year to $10.03 billion – beating analysts' forecasts of $9.38 billion.
Looking ahead, Deere expects its full-year 2019 equipment sales to increase + 4% - which is below its prior forecast of around +5%. The company now predicts that its net income would come in at $3.2 billion, down from the company's earlier guidance of $3.3 billion.
CEO Sam Allen indicated that trade tensions continue to weigh on the agriculture industry and therefore on Deere’s earnings prospects. Allen mentioned concerns over exports market, near-term demand for commodities such as soybeans, and overall crop conditions – headwinds that have reportedly led to many farmers holding off major equipment purchases.
Nevertheless, Allen remains hopeful that the long-term potential for the company’s businesses remains healthy. He emphasized that Deere continues to expand its global customer base, and that it is focused on achieving sustainable profitable growth.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
DE sees MACD Histogram just turned negative
DE saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on September 25, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 44 instances where the indicator turned negative. In 29 of the 44 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 66%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for DE moved out of overbought territory on September 24, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 33 similar instances where the indicator moved out of overbought territory. In 19 of the 33 cases, the stock moved lower in the following days. This puts the odds of a move lower at 58%.
The Momentum Indicator moved below the 0 level on October 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on DE as a result. In 51 of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 61%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 56%.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 38 of 64 cases where DE's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 59%.
Following a +3.62% 3-day Advance, the price is estimated to grow further. Considering data from situations where DE advanced for three days, in 199 of 332 cases, the price rose further within the following month. The odds of a continued upward trend are 60%.
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 Aroon Indicator entered an Uptrend today. In 117 of 210 cases where DE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 56%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 11 (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 17 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 42 (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 SMR rating for this company is 49 (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 Valuation Rating of 68 (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (6.645) is slightly higher than the industry average of (2.582). P/E Ratio (38.332) is within average values for comparable stocks, (34.809). Projected Growth (PEG Ratio) (1.600) is also within normal values, averaging (1.745). Dividend Yield (0.009) settles around the average of (0.009) among similar stocks. DE's P/S Ratio (3.868) is very high in comparison to the industry average of (1.128).
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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a manufacturer of agricultural, industrial, commercial and consumer equipment
Industry TrucksConstructionFarmMachinery
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