Deere & Co. missed earnings expectations amidst rising costs, notwithstanding strong revenue growth. It also lowered its full-year profit outlook.
The agricultural equipment maker’s sales of $13.0 billion for the quarter ended July 31 beat analysts’ expectations of $12.78 billion.
However, earnings came in at $6.16 per share, below analysts’ estimates of $6.69 per share (based on Refinitiv IBES data).
The earnings miss could be to some extent attributed to total costs and expenses surging +24.4% year over year.
Deere indicated that it expedited shipping to get tractors and combines on dealer showroom floors, in response to increased demand for new equipment amidst record high commodity prices.
Deere lowered its full-year net income outlook to the range of $7.0 billion to $7.2 billion, vs. prior guidance of $7.0 billion to $7.4 billion.
The 50-day moving average for DE moved above the 200-day moving average on May 02, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 63 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 .
The Momentum Indicator moved above the 0 level on May 03, 2024. You may want to consider a long position or call options on DE as a result. In of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
DE moved above its 50-day moving average on May 02, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DE advanced for three days, in of 341 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 Aroon Indicator entered an Uptrend today. In of 280 cases where DE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for DE moved out of overbought territory on April 12, 2024. 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 39 similar instances where the indicator moved out of overbought territory. In of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for DE turned negative on April 12, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 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 72, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very 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 (2.077). P/E Ratio (11.779) is within average values for comparable stocks, (24.607). 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 (118.379).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of agricultural, industrial, commercial and consumer equipment
Industry TrucksConstructionFarmMachinery