Deere & Company (NYSE: DE) will release its earnings on Wednesday 24, 2021, before the market open.
What to look for
The company is releasing its earnings on Wednesday at the back of the end of a month-long strike of its union employees. The United Auto Workers union members ratified a deal that included an $8,500 bonus and 10% rise in wages with additional increases over the life of the 6-year deal and other benefits. The changes are likely to have an impact on the company's earnings in the coming quarters. For the current quarter under review, the company is expected to top earnings estimates thanks to a rebound in demand for overall equipment after the reopening of the economy, a trend that is expected to have continued in Q4.
Earnings: Stockearning’s Estimated EPS for Q4 2021 is $3.96 per share. In the third quarter, the company had a net come of $1.667 billion or $5.32 per share compared to a net income of $811 million or $2.57 per share in Q2 2020. Historical EPS Performance for the past 12 quarters shows that the company has beat EPS estimates eight times (66%) and missed four times (33%).
Revenue: The company is expected to post Q4 2021 revenues of around $10.6 billion thanks to a strong rebound in demand for agriculture and construction equipment in recent quarters. In the third quarter, the company had revenue of $10.4 billion, reflecting a YoY increase of 32%.
Stock movement: Since the last earnings release, Deere stock has lost 3.6%. Deere stock has been DOWN 26 times out of the past 47 quarters after the earnings release. So, the historical price reaction suggests a 55% probability of the share price going DOWN once Deere releases Q4 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 3%, while the predicted move on the seventh day is 4%.
What analysts are saying
Deutsche Bank analyst Nicole Deblase lowered her target price of Deere shares from $383 to $375 but maintained a “Hold” rating on the stock ahead of the company’s Q4 2021 earnings release.
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