Agricultural and construction equipment manufacturer Deere & Company (NYSE:DE) could show the impact of tariffs and how the farming sector is performing when the company reports fourth-quarter financial results on Wednesday before market open.
Here's a look at the earnings estimates, what experts are saying ahead of the report and key items to watch.
Earnings Estimates: Analysts expect Deere to report fourth-quarter revenue of $9.85 billion, down from $11.14 billion in last year's fourth quarter, according to data from Benzinga Pro.
The company has beaten analyst revenue estimates for more than 10 straight quarters.
Analysts expect Deere to report fourth-quarter earnings per share of $3.85, down from $4.55 in last year's fourth quarter.
The company has beaten analyst earnings-per-share estimates for more than 10 straight quarters.
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What Experts Are Saying: With Deere stock trailing the year-to-date performance of equipment manufacturer peer Caterpillar Inc (NYSE:CAT), a market expert questions if the spotlight on the farming industry can help the company catch up.
"The farming industry has been in the spotlight recently due to the Trump administration tariff policy," Freedom Capital Markets Chief Market Strategist Jay Woods said in a newsletter. "Investors will be focused on that impact and what guidance the company can offer when they report results on Wednesday morning."
Woods said Deere stock is showing a technical breakdown below key support levels on the chart and could be attempting to rebound.
"As we head into the week, shares are on the verge of clearing a major resistance level at the 200-day moving average and make a run to yearly highs."
Woods said the near-term trade could be more of a "50/50 call," but patient investors could be rewarded over the long term.
A shift toward technology in the agriculture industry could favor Deere, according to RBC Capital analyst Sabahat Khan.
The analyst recently initiated coverage on Deere with an Outperform rating and a price target of $542.
Khan said Deere's focus on technology could help reduce reliance on traditional agricultural equipment sales. More farmers buying connected hardware keeps Deere's customers in the ecosystem and could provide additional revenue and less reliance on farming cycles.
Key Items to Watch: Analysts and investors will be closely monitoring the company's segment sales in the fourth-quarter results.
The company reported a 16% year-over-year decline in the key Production and Precision Agriculture segment in the third quarter, driven by lower shipment volumes.
The smaller Construction and Forestry and Small Agriculture and Turf segments saw smaller year-over-year declines of 5% and 1% respectively, for the third quarter.
The company cut its full-year guidance, citing headwinds like tariffs and lower customer demand. On the company's third-quarter earnings call, management said tariff costs were around $200 million.
Analysts and investors will be watching to see what the fourth-quarter tariff costs were and if there is any guidance on this number for the next fiscal year.
One highlight in the third quarter was management commentary on technology advancements, such as See & Spray and Harvest Settings Automation. The tools help improve productivity for farmers and customers.
The company could highlight technology advancements once again in the fourth quarter, and the impact that products like these have on recurring revenue and margins.
Deere is the largest holding in the VanEck Agribusiness ETF (NYSE:MOO), putting the ETF in the spotlight ahead of earnings. Deere represents around 8.5% of the fund's assets and a big move after earnings could make the ETF price highly volatile.
DE Price Action: Deere stock is up 2.0% to $496.86 on Tuesday, versus a 52-week trading range of $403.01 to $533.78. Deere shares are up 17.3% year-to-date in 2025.
For comparison, Caterpillar shares are up 54.0% year-to-date in 2025.
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