What long-term trends can investors expect from DE's earnings?

**Deere's (DE) earnings are expected to face significant headwinds in the near term**, but there are some potential silver linings that investors should consider:

1. **Short-Term Challenges**:
- **Earnings Decline**: Deere's earnings are predicted to fall, with a projected decrease of 32.71% in EPS from the previous year's quarter.
- **Revenue Decrease**: There is also an expectation of a 21.03% drop in revenue compared to the same quarter last year.
- **Market Headwinds**: The company is facing soft fundamentals, including normalization after a boom, lower farm income, elevated used inventories, and threats from tariffs.
2. **Long-Term Trends**:
- **Government Support**: Deere is relying on government support to offset the impact of lower farm income, which could provide some fiscal stability.
- **Expected Growth**: Despite the current challenges, Deere's earnings are expected to grow by 14.03% next year, from $19.32 to $22.03 per share.
- **Market Position**: Deere's strong market position and recent performance outpacing the Industrial Products sector could provide a foundation for recovery.

In conclusion, while Deere's earnings are likely to face a tough short-term environment, the company's long-term prospects may be bolstered by government support and expected growth. Investors should closely monitor the company's performance and the evolving landscape of government support and market conditions.