Agriculture equipment manufacturer Deere (DE) is set to report its Q1 earnings later this week. Its share price is up 29% so far this year, buoyed by its embrace of AI technology and automation.
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According to TipRanks’ Options Tool, options traders expect about a 6.15% move in either direction in DE stock in reaction to its Q1 results.
What Wall Street Expects
Wall Street expects DE to report earnings of $1.92 per share, implying a 39.8% year-on-year fall. Revenues are tipped to come in at $7.6 billion, which would be a 11.7% year-over-year increase.
Will Deere beat these expectations? As can be seen below, it has a strong track record of doing just that.
Key Issues Ahead of Earnings
In Q4, Deere reported that net sales and revenues were up 11% to $12.4 billion, and equipment operations net sales were up 14% to $10.6 billion. However, it said that net income attributable to Deere & Company decreased to $1.1 billion, down from previous quarters. It also warned of a projected pretax direct tariff expense of approximately $1.2 billion for fiscal year 2026, negatively impacting margins.
Analysts expect similar drivers and challenges in Q1. They have highlighted weak farmer spending amid low commodity prices. DE has been aligning its production with demand levels, which is likely to have weighed on the company’s fiscal first-quarter performance.
Zacks analysts stated that high production expenses, selling, administrative and general expenses, and research and development expenses are also likely to have impacted the company’s margin in the quarter.
Revenues will be driven by its small agriculture and turf segment as well as construction and forestry.
Is DE a Good Stock to Buy Now?
On TipRanks, DE has a Moderate Buy consensus based on 8 Buy and 7 Hold ratings. Its highest price target is $560. DE stock’s consensus price target is $514.25, implying a 14.41% downside.
