Deere & Company (NYSE: DE), a leading manufacturer of agricultural and construction equipment, is scheduled to report its third-quarter results next week. Investors will be closely watching how the business has navigated the challenging market environment. The Street will also be keen to hear management’s outlook for the rest of the year, as the company continues to face headwinds such as declining demand for farming equipment and softer volumes.
Estimates
When Deere reports Q3 results on August 14, before the opening bell, Wall Street will be expecting earnings of $4.59 per share on revenues of $10.33 billion. That compares to earnings of $6.29 per share and revenues of $11.39 billion in the corresponding quarter of fiscal 2024. The company has a strong track record of beating analysts’ quarterly earnings and revenue estimates.
Deere has regularly raised its dividend, currently offering a yield of 1.3%. The company’s stock made strong gains after it reported better-than-expected Q2 results in mid-May and climbed to an all-time high. Since then, DE has traded mostly sideways, maintaining a level well above its 52-week average of $454.45. The stock is up more than 20% over the past seven months.
Q2 Outcome
In the second quarter, Deere’s worldwide sales and revenues decreased 16% year-over-year to $12.8 billion, with sales declining across all operating segments. Q2 net income was $1.8 billion or $6.64 per share, compared to $2.37 billion or $8.53 per share in the year-ago quarter. For the whole of fiscal 2025, the management expects net income to be in the range of $4.75 billion to $5.50 billion, which is well below the profit generated in FY24.
“Smart Industrial’ unlocks value through the integration of cutting-edge technology with premium hard iron equipment. We will continue to robustly invest capital and R&D to bring these integrated solutions to market, enhancing our global competitiveness. I’m proud that this innovative work will build on our American roots, and we are prepared to invest $20 billion in the U.S. over the next decade as we spearhead new product development, cutting-edge technologies, and more advanced manufacturing,” Deere’s CEO John May said in the Q2 2025 earnings call.
On Friday, Deere & Company’s stock opened at $508.76 and traded mostly higher during the session. The shares have gained around 46% in the past twelve months.
