Deere Shares Dip 0.22% with 163rd Trading Volume as Earnings Plunge Looms Over Ag and Construction Sectors

Deere & Co. (DE) closed 0.22% lower on August 12, with a trading volume of $650 million, ranking 163rd in the stock market. The agricultural machinery giant is set to release its third-quarter fiscal 2025 earnings on August 14, with analysts forecasting a 26.6% year-over-year decline in earnings per share to $4.62 and a 9.9% drop in revenue to $10.3 billion. Zacks Investment Research notes Deere has exceeded earnings estimates in four consecutive quarters, but current challenges in global agriculture and construction sectors are expected to weigh on performance. Weak farmer spending driven by low commodity prices, combined with rising production and operating expenses, could pressure margins despite favorable pricing strategies.

Segment analysis suggests Deere’s Production & Precision Agriculture division may see a 15.6% revenue decline to $4.3 billion, with operating profits forecast to fall 49.8% to $583 million. The Small Agriculture & Turf segment is projected to generate $2.68 billion in sales, down 12.3% year-over-year, while operating profits could drop 27.7% to $359 million. The Construction & Forestry division faces a 0.7% revenue contraction to $3.21 billion, with operating profits expected to fall 43.2% to $942 million. In contrast, the Financial Services segment may show resilience, with revenue rising 5.1% to $1.56 billion and operating profits reaching $204 million.

Despite these headwinds, the Zacks model predicts an earnings beat due to a positive Earnings ESP of +0.58% and a Zacks Rank #3 (Hold). However, ongoing cost pressures and subdued demand in key markets remain critical risks. The stock has outperformed its industry peers by 2.9% over the past year, but near-term volatility could intensify ahead of the earnings release.

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