How Deere Stock Has Performed since Q1 Results



Deere’s second-quarter earnings

Deere (DE) is scheduled to announce earnings for its second quarter of fiscal 2019 on May 17 before the market opens. The announcement is to be followed by a conference call at 9:00 AM CST. In this series, we’ll analyze Deere’s stock performance since it announced its first-quarter earnings on February 15. We’ll also discuss analysts’ earnings and revenue expectations for the second quarter and analysts’ views and recommendations.

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Deere’s stock performance

Since Deere announced its first-quarter earnings on February 15. Since then, the stock has declined by ~1.9%. Deere’s peers Caterpillar (CAT) and CNH Industrial (CNHI) have fallen by 3.6% and 8.3%, respectively, while AGCO (AGCO) has gained 12.5%. The broader market S&P 500 (SPY) has gained 3.8% during the same period.

Deere failed to meet Wall Street expectations in the first quarter. However, Deere guided that its equipment revenue for 2019 would grow by 7%. The synergy effect from the acquisition of Wirtgen is likely to drive Deere’s future earnings along with other smaller acquisitions and organic growth. If Deere can deliver on these aspects, it could help its stock to recover some of its lost ground.

On the other hand, the dollar’s strength could be a cause of worry. On a year-to-date basis, the dollar index, which measures the dollar movement against the basket of currencies, has gained ~1.20%, which could have an adverse impact on Deere’s revenue and earnings.


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