Deere & Co (SWX:DE) earnings preview for Second Quarter FY15
Deere & Co will report its second quarter earnings for
Deere & Co is scheduled to release its second quarter fiscal year 2015 earnings on May 22. Analysts expect the company to report soft results, as continuous weakness in international sales of agriculture equipment impacting the top line growth of the company. Due to which, JP Morgan recently downgraded Deere stock, which went down by 3.3% last week after the downgrade by JP Morgan.
The iconic farm tractor maker’s agriculture equipment sales in the quarter is expected to be somewhat offset by its Construction and Forestry segment gains, which is most likely to have grown on the back of strong construction activity in the country.
In the first quarter, the company posted better results in spite of huge drop. its net sales went down by 19% on year, over year basis and reach $5.6 billion as compared to analysts estimations of $4.9 billion. its diluted EPS dropped 38% to $1.12 a share, against analysts estimation of 83 cents. During the earnings call the company also reviewed
The Department of Agriculture in U.S recently issued its projection of farm income in 2015. It forecasts a 32% drop from 2014 to $73.6 billion. This is mainly because of tumbling crop prices like soybean and corn, which accounts for almost 50% of crop and 28% of
The machine manufacturer is most likely to post non-GAAP earnings of $1.67 per share, more than consensus estimate by almost 11 cents. Deere 7cO. is also expected to post $7.77 billion in sales for the quarter, surpassing $258 million estimated by the Street. The consensus projects the company to display 41.35% drop in year over year earnings, together with 24.46% year over year decline in sales.
