Deere (DE, $369.73) misses earnings estimates, despite revenue beat
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.
DE in -3.14% downward trend, falling for three consecutive days on May 31, 2023
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where DE declined for three days, in of 268 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 12, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on DE as a result. In of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DE turned negative on May 15, 2023. 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 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 50-day moving average for DE moved below the 200-day moving average on May 11, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
The Aroon Indicator for DE entered a downward trend on May 24, 2023. 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 Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 11 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
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.
Fundamental Analysis (Ratings)
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 74, 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 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 (4.579) is slightly higher than the industry average of (1.950). P/E Ratio (11.628) is within average values for comparable stocks, (39.674). Projected Growth (PEG Ratio) (1.000) is also within normal values, averaging (1.671). Dividend Yield (0.014) settles around the average of (0.036) among similar stocks. P/S Ratio (1.765) is also within normal values, averaging (110.611).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. DE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of agricultural, industrial, commercial and consumer equipment
Industry TrucksConstructionFarmMachinery
DE and
Correlation & Price change
A.I.dvisor indicates that over the last year, DE has been closely correlated with CNHI. These tickers have moved in lockstep 80% of the time. This A.I.-generated data suggests there is a high statistical probability that if DE jumps, then CNHI could also see price increases.
