Deere & Company Reports Q2 Earnings Amid Strong Stock Performance

With a market cap of $140.1 billion, Deere & Company (DE) manufactures and distributes diverse equipment globally. Established in 1837 and based in Moline, Illinois, the firm operates through four segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services.

Stock Performance Overview

Over the past year, shares of Deere have significantly outperformed the broader market, surging 24.7% in the last 52 weeks and 21.9% year-to-date. In contrast, the S&P 500 Index ($SPX) has only returned 11.5% over the same period.

Comparison with Industry Benchmarks

Narrowing the focus, DE has also surpassed the Industrial Select Sector SPDR Fund’s (XLI) growth of 12.9% over the past year and its 7.9% rise this year.

Q2 Earnings Highlights

Following the release of its Q2 earnings on May 15, DE stock surged 3.8%. The company reported net sales of $12.8 billion, reflecting a 16% year-over-year decrease, yet it exceeded analysts’ expectations. DE’s adjusted earnings per share (EPS) stood at $6.64, surpassing Wall Street estimates by 16.9%. However, net income fell 24% year-over-year, totaling $1.8 billion for the quarter.

Future Earnings Projections

For the current fiscal year ending in October, analysts predict DE’s EPS will decline 26.5% year-over-year to $18.83. Nonetheless, the company has outperformed consensus estimates for the past four quarters, showcasing resilience.

Analyst Ratings and Price Targets

Among the 20 analysts covering DE, the consensus rating is a “Moderate Buy,” with 10 “Strong Buy” ratings, one “Moderate Buy,” and nine “Holds.”

This configuration has not changed recently. On April 22, Oppenheimer & Co. analyst Kristen Owen maintained a “Buy” rating on DE stock, raising the price target from $510 to $513. The mean price target of $494.40 remains below current price levels, while the Street-high target of $583 implies an upside potential of 12.9%.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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