Farm and construction equipment maker Deere & Company (DE) is scheduled to announce its results for the second quarter of Fiscal 2025 before the market opens on Thursday, May 15. Analysts expect the weakness in Deere’s financials to continue in Q2 2025. They project EPS to decline about 35% year over year to $5.56 and revenue to fall 19.5% to $10.95 billion. Interestingly, DE stock has risen 18% so far this year, reflecting improved sentiment and positive reaction to the easing of tariff pressures to some extent.
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Deere has been delivering a decline in its revenue and earnings in recent quarters due to weakness in the demand for farm equipment and macro challenges. According to Main Street Data, the company’s net sales (excluding Financial Services revenue and Other revenue) fell 35% in Q1 FY25.
Analysts’ Views Ahead of Deere’s Q2 Earnings
Heading into the results, Goldman Sachs reiterated a Buy rating on Deere, Caterpillar (CAT), and United Rentals (URI) stocks, stating that its latest Machinery Supply tracker highlighted a bullish inflection in machinery capital stock. Analysts at the firm observed declining capital stock for the first time in three years and underproduction over the past year amid dealer inventory destocking. They noted that estimates have fully priced in tariff headwinds and see valuation upside on mid-cycle earnings.
Goldman Sachs clarified that its research note isn’t a call on tariffs or an indication of underlying economic acceleration, but is purely a supply-side call that points to upside beyond the economic cycle.
Recently, Oppenheimer analyst Kristen Owen increased the price target for Deere stock to $513 from $510 while reiterating a Buy rating. Owen highlighted that agriculture has “proved a relatively resilient pocket of the market” amid tariffs and macro uncertainty. The 4-star analyst contended that while the sector is not immune to tariffs and retaliatory measures, its fundamental setup coming into 2025 remains intact. Moreover, the potential for government subsidies helps mitigate the economic impact on farmer customers, thinks Owen.
Here’s What Options Traders Anticipate
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about a 5% move in either direction in Deere stock in reaction to Q2 results.
Is DE a Good Stock to Buy?
Overall, Wall Street is cautiously optimistic on Deere stock, with a Moderate Buy consensus rating based on four Buys and seven Holds. The average DE stock price target of $482.90 implies a downside risk of about 3.1%.
