Deere (DE) stock dropped this morning after the farm equipment manufacturer reported earnings results for Fiscal Q1 2025. That’s despite it posting diluted earnings per share of $3.19 on $8.508 billion in revenue. Both surpassed Wall Street’s estimates of $3.12 per share and revenue of $7.7 billion. However, EPS and revenue were down 48.8% and 30% year-over-year, respectively.
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Decreasing demand for farm equipment is behind the annual drop in Deere earnings and revenue. Chairman and CEO John May said the company continues to focus on “optimizing inventory levels
of both new and used equipment amidst the uncertain market conditions our customers are facing.” He also notes the company’s stable net income shows “resilience in a challenging market” and “enables our sustained strategic investments to provide better outcomes for our customers.”
DE Stock 2025 Outlook
Deere’s outlook for Fiscal 2025 isn’t good as it expects sales drops across multiple sectors. That includes Production & Precision Agriculture sales falling 15% to 20%, Small Agriculture & Turf revenue decreasing roughly 10%, and Construction & Forestry net sales declining 10% to 15%.
Deere notes that its financial guidance doesn’t account for potential import tariffs by the U.S. or possible retaliatory export tariffs from other countries.
Investors aren’t pleased with today’s earnings report, sending shares of DE stock 5.15% lower during pre-market trading. For the record, DE shares are still up 12.48% year-to-date and 25.72% over the last year.
Is DE Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Deere is Moderate Buy based on six Buy and eight Hold ratings over the past three months. With that comes an average price target of $479.50, a high of $550, and a low of $400. This represents a potential upside of 0.62% for DE stock. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.
