Farm equipment maker Deere & Company (NYSE: DE) could provide a deeper look at the impact of tariffs and a record-high agricultural trade deficit in the United States, which is affecting the sector, when the company reports its third-quarter financial results on Thursday before the market opens.
Here are the analyst estimates and key items to watch.
Earnings Estimates: Analysts expect Deere & Company to report third-quarter revenue of $10.31 billion, down from $13.15 billion in last year's third quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in more than 10 straight quarters.
Analysts expect the company to report third-quarter earnings per share of $4.63, down from $6.29 in last year's third quarter.
The company has beaten analyst estimates for earnings per share in more than 10 straight quarters.
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Key Items to Watch: Analysts raised their price targets on Deere after the company's second-quarter results came in ahead of estimates.
The company’s announcement of a $400 million tariff impact for the second half may have been better than anticipated, leading to optimism for the stock. The company’s decision to cut its guidance range may have hurt overall optimism, however.
Freedom Capital Markets Chief Global Strategist Jay Woods said Deere stock was "relatively stagnant" in the second quarter.
"Last report they beat on all metrics but tempered optimism trimming their annual forecast. Tariff concerns remain a cloud over and softening demand remain issues as they head into Thursday's numbers," Woods said in a weekly newsletter.
Woods said shares are up over 20% year-to-date, but the gains mostly came in the first quarter.
"Watch to see sales trends across its agriculture and construction/forestry segments. Will there be stabilization in these numbers or are tariff headwinds taking a toll?"
Deere's earnings report comes with a soybean shortage in the United States and the U.S. agriculture trade deficit hitting a record high in the first half of the year through June.
The U.S. had agricultural exports of $85.6 billion and imports of $114 billion in the first half of the year, resulting in a deficit of $28.6 billion. That compares to a deficit of $18.4 billion in last year's first half.
Ultimately, Deere’s earnings report could show if the tariff impact is still the same or has risen higher, what the agricultural deficit means for large equipment purchases and if the U.S. agricultural sector is seeing job losses in recent months.
In the second quarter, Deere reported net sales declines for the three main segments on a year-over-year basis.
Small agriculture & turf net sales had the smallest year-over-year fall at a 6.5% decline. Investors and analysts will likely want to see the production & precision agriculture and construction & forestry segments show more of a recovery in the third quarter.
DE Price Action: Deere & Company stock is up 0.9% to $510.58 on Wednesday versus a 52-week trading range of $348.35 to $533.78. Deere stock is up 20.5% year-to-date in 2025.
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