What to Expect from Deere's Q3 Earnings Report: Analysts' Predictions and Stock Performance

Deere & Co. is expected to report Q3 earnings of $4.62 per share, down 26.6% YoY, on Thursday, Aug. 14. The company's stock has surged 39.3% over the past 52 weeks, outpacing the S&P 500 Index and Industrial Select Sector SPDR Fund. Analysts remain optimistic about the stock's longer-term prospects, with a consensus "Moderate Buy" rating and a mean price target of $548.19, indicating a 6.5% upside potential.

Deere & Co. (NYSE: DE) is poised to report its Q3 earnings on Thursday, August 14, with analysts expecting earnings of $4.62 per share, a notable 26.6% year-over-year (YoY) decline. Despite this expected downturn, the company's stock has surged by 39.3% over the past 52 weeks, outperforming the S&P 500 Index and the Industrial Select Sector SPDR Fund.

Analysts maintain a "Moderate Buy" rating on the stock, with a mean price target of $548.19, indicating a 6.5% upside potential. This optimism is driven by the company's long-term growth prospects, with earnings and revenue growth forecasts of 11.9% and 0.05% per annum, respectively [1].

The expected earnings per share (EPS) growth rate of 13.3% per annum and the forecast return on equity (ROE) of 36.2% in three years also contribute to the bullish outlook. However, the company's revenue growth rate of 0.05% per annum is significantly slower than the US market's 9% growth rate, which may pose a challenge to future performance [1].

Deere's recent acquisition of Sentera, Inc., and strategic shifts in the agricultural sector are expected to drive future growth. Moreover, the company's dividend of $1.62 per share, which is expected to be paid on August 8, 2025, and its dividend growth trajectory, are attractive to investors [2].

Despite the recent earnings decline, Deere's stock has shown resilience, with a price target increase of 8.8% to $533 on May 19, 2025, and an increase of 8.2% to $449 on November 22, 2024. This indicates that investors are confident in the company's ability to navigate through cyclical pressures and strategic shifts [3].

In conclusion, while Deere & Co. is expected to report a significant YoY decline in earnings for Q3, analysts remain optimistic about the company's long-term prospects. The stock's strong performance over the past year and the company's strategic initiatives suggest that investors should keep a close eye on Deere's earnings report and subsequent developments.

References:
[1] https://simplywall.st/stocks/us/capital-goods/nyse-de/deere/future
[2] https://simplywall.st/stocks/us/capital-goods/nyse-de/deere/future
[3] https://simplywall.st/stocks/us/capital-goods/nyse-de/deere/future