Deere Q2 Earnings Preview: Demand Remains A Concern, Retail’s Bullish But Doubts Linger

Deere (DE) stock has gained 4.1% over the past week ahead of its quarterly earnings report on Thursday.

According to FinChat data, Wall Street expects Deere to report second-quarter (Q2) earnings per share of $5.62 on revenue of $10.79 billion. The company has topped market expectations three out of the previous four quarters.

The company expects large agricultural equipment industry sales in the US and Canada to be down approximately 30%, hurt by higher interest rates, macro uncertainty, and elevated used inventory levels.

While higher costs have pressured U.S. farm income, global crop demand has remained resilient. The trade agreement between China and the U.S., signed a few days earlier, could further boost U.S. exports.

According to TheFly, Oppenheimer analysts have noted that agriculture has "proved a relatively resilient pocket of the market” amid tariff and macro uncertainty.

The brokerage also said that the potential for government subsidies could help cushion the economic impact on the company’s farmer customers.

Deere, which makes tractors and combines, typically records its highest sales during the fiscal second quarter.

Earlier in May, peer AGCO had surpassed quarterly earnings estimates.

Retail sentiment on Stocktwits was in the ‘bullish’ (58/100) territory, while retail chatter was ‘high.’

“Tractors are plowing through market noise,” one user said.

While one bearish user said the stock could plunge below $400 by next week after a bad earnings report.

Deere stock has gained 16.8% year to date (YTD)

Also See: New Fortress Stock Tumbles After Big Q1 Revenue Miss, Retail’s Bullish But Concerned About Debt

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