Deere & Co Q1 Earnings Preview: Weak Demand To Dent Bottom Line, Retail’s Bearish

Deere & Co (DE) stock gained marginally in pre-market trade on Wednesday as investors awaited the farm equipment maker’s earnings report on Thursday.

According to Koyfin data, Wall Street expects Deere to report first-quarter (Q1) earnings per share of $3.26 and revenue of $7.90 billion. The company has topped market expectations in eight out of the last eight quarters.

In November, the world's largest farm equipment maker forecast its fiscal 2025 profit between $5 billion and $5.5 billion.

The company had projected industrywide sales of large agricultural equipment in the U.S. and Canada to decline about 30% in 2025 on tepid amid weak farm fundamentals, high interest rates, and elevated used inventory levels.

According to the U.S. Department of Agriculture, farm income declined in 2024 due to higher production costs and lower crop prices.

In January, JP Morgan analysts said that large agricultural equipment makers group is a "good place to hide" in machinery should the macro narrative worsen in the coming weeks, according to TheFly.

Retail sentiment on Stocktwits remained in the ‘bearish’ (40/100) territory, albeit with a higher score than a day ago, while retail chatter was ‘low.’

The U.S. Federal Trade Commission had sued the company in January for allegedly driving up repair costs illegally by forcing farmers to depend on its authorized dealer network.

The company unveiled several autonomous machines last month amid a shortage of skilled workers in agriculture.

Over the past year, Deere stock has gained 23.4%.

Also See: Sweetgreen Stock Dips On Price-Target Cuts Ahead of Q4 Earnings, But Retail’s Bullish

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