Deere & Company Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Deere & Company (NYSE:DE) will unveil its latest earnings on Wednesday, May 16, 2012. Deere & Company provides products and services for agriculture, forestry, construction, landscaping, and irrigation.

Deere & Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $2.54 per share, a rise of 19.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $2.53. Between one and three months ago, the average estimate moved up. It has been unchanged at $2.54 during the last month. For the year, analysts are projecting profit of $8 per share, a rise of 20.7% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 6 cents, reporting net income of $1.30 per share against a mean estimate of profit of $1.24 per share.

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Wall St. Revenue Expectations: Analysts predict a rise of 16.4% in revenue from the year-earlier quarter to $9.7 billion.

Analyst Ratings: Analysts seem relatively indifferent about Deere & Company with nine of 17 analysts surveyed maintaining a hold rating.

A Look Back: In the first quarter, profit rose 3.7% to $532.9 million ($1.30 a share) from $513.7 million ($1.20 a share) the year earlier, exceeding analyst expectations. Revenue rose 14.1% to $6.29 billion from $5.51 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 23.3%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 28.9% from the year earlier quarter.

The company’s net income rise has increased in each of the last three quarters. Net income rose 46.4% in the fourth quarter of the last fiscal year and 15.4% in the third quarter of the last fiscal year.

Stock Price Performance: Between March 16, 2012 and May 14, 2012, the stock price had fallen $5.43 (-6.6%), from $82.76 to $77.33. The stock price saw one of its best stretches over the last year between December 30, 2011 and January 11, 2012, when shares rose for eight straight days, increasing 9.2% (+$7.11) over that span. It saw one of its worst periods between December 9, 2011 and December 19, 2011 when shares fell for seven straight days, dropping 6.1% (-$4.73) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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