Deere & Company (DE) is scheduled to report its Q3 2012 results on Aug. 15, 2012, before the market opens. The Street expects EPS and revenue of $2.31 and $9.55 billion, respectively.
In this article I will recap Deere's historical results, its latest EPS estimates vs. surprises, recent company news, and the news from its closest competitors.
Recent EPS: Actual Vs. Estimates
In the last quarter the company reported EPS of $2.61, beating analyst estimates of $2.53.
The consensus EPS estimate is $2.31 based on 18 analysts' estimates, up from $1.69 a year ago. Revenue estimates are $9.55 billion, up from $7.72 billion a year ago. The median analyst target price for the stock is $90.00.
Average recommendation: Overweight
- On July 10, 2012, Deere announced that it has entered the Recreational Utility Vehicle category with the Gator RSX850i. According to the company, "it's been engineered to be faster, more powerful, and more agile than any Gator ever built."
- On June 29, 2012, to help agricultural producers manage their equipment information, production data, and farm operations from a single website, Deere introduced MyJohnDeere.com. Developed as part of the John Deere FarmSight™ strategy, the MyJohnDeere toolbox gives customers a centralized online portal to access, view, archive, and manage a wide variety of business information.
- On June 29, 2012, Deere introduced Remote Display Access, which allows users to view the operator's display screen on their Deere equipment. As farmers integrate more precision technology into their equipment and operations, the ability to remotely supervise and support those field operations becomes even more important.
- On June 29, 2012, to give producers increased accuracy in precision-guided field operations, Deere announced enhancements to its StarFire 3000 Receivers.
- On June 4, 2012, Deere announced it will invest $47 million to expand manufacturing capacity in its Moline, Ill., cylinder operations, where the company builds a broad range of hydraulic cylinders used in the company's agricultural, construction, and forestry machines sold around the world.
- On June 1, 2012, as a result of the anticipated retirements of two executives, Deere announced changes to its senior management team to enhance the company's ability to execute its business strategy and develop and broaden leadership talent.
- On May 30, 2012, the Deere board of directors declared a regular quarterly dividend of $0.46 a share on common stock, payable Aug. 1, 2012, to stockholders of record on June 29, 2012.
- On May 16, 2012, Deere announced second-quarter earnings. Earnings per share rose 23% on 12% increase in net sales and revenues. Healthy global farm conditions drive performance and support a positive outlook. The full-year earnings forecast was boosted to $3.350 billion.
- On Feb. 15, 2012, Deere announced that for fiscal 2012, net income attributable to the company is anticipated to be approximately $3.275 billion. According to I/B/E/S estimates, analysts on an average were expecting the company to report net income of $3.172 billion for fiscal 2012.
AGCO Corporation (AGCO), Caterpillar (CAT), CNH Global (CNH), and Joy Global (JOY) are considered major competitors for Deere. The table below provides the key metrics for these companies and the industry.
The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one-year period.
Competitors' Latest Developments
- On Aug. 1, 2012, Caterpillar announced that Platinum Equity's acquisition of a majority interest in Caterpillar Logistics Services has been completed. Caterpillar will retain a 35% equity stake in the business.
- On Aug. 1, 2012, CNH Global NV announced that it confirms fiscal 2012 guidance and expects revenues up 5%+. The company reported revenue of $18.059 billion in fiscal 2011.
- On July 26, 2012, AGCO Corporation announced that for fiscal 2012, it expects adjusted EPS in a range from $5.50-$5.75 and net sales to range from $10.1-$10.3 billion.
- On July 25, 2012, Caterpillar narrowed fiscal 2012 outlook range for sales and revenues, and raised outlook for profit. The sales and revenues outlook range for fiscal 2012 is now $68 to $70 billion with profit of about $9.60 per share at the middle of the sales and revenues outlook range.
- On June 5, 2012, Westport Innovations announced that it has signed agreements with Caterpillar to co-develop natural gas technology for off-road equipment, including mining trucks and locomotives.
- On May 31, 2012, Joy Global announced that the current softness in the U.S. aftermarket orders is not expected to be completely offset by strength in the international markets, and therefore the aftermarket bookings rate is expected to adversely impact revenues by $100 million for fiscal 2012.
- On May 30, 2012, Caterpillar and Barloworld Limited announced that Caterpillar Global Mining LLC and Barloworld have signed an agreement for Barloworld to acquire the Bucyrus equipment distribution and support business in South Africa and Botswana.
- On May 30, 2012, CNH Global NV announced that its board of directors has received a proposal from Fiat Industrial S.p.A. regarding a combination transaction between Fiat Industrial S.p.A. and CNH. The proposal was set forth in a letter sent by Sergio Marchionne, chairman of Fiat Industrial S.p.A., to the board of directors of CNH. Fiat Industrial S.p.A. currently owns approximately 88% of CNH's shares.
- On May 10, 2012, Reuters reported that Caterpillar said on May 10, 2012, that it will sell a 65% stake in its third-party logistics division to Platinum Equity for $750 million, to focus on its core businesses.
- On April 25, 2012, Caterpillar announced that it has increased the profit guidance for fiscal 2012 while maintaining the sales and revenues outlook in the range of $68 to $72 billion.
- On April 12, 2012, Caterpillar announced it would maintain the quarterly cash dividend of $0.46 per share of common stock, payable May 19, 2012, to stockholders of record at the close of business, April 23, 2012.
- On April 12, 2012, Caterpillar announced it reached an agreement with WesTrac Pty Limited, a wholly owned subsidiary of Seven Group Holdings Limited, to acquire from Caterpillar the distribution and support business formerly operated by Bucyrus in Western Australia, Australian Capital Territory, and New South Wales.
- On April 11, 2012, Caterpillar announced that the board of directors voted to maintain the quarterly cash dividend of $0.46 per share of common stock, payable May 19, 2012, to stockholders of record at the close of business on April 23, 2012.
- On March 6, 2012, Caterpillar announced that by fiscal 2012, it would have sales of $55 billion to $60 billion and profit of $8 to $10 a share. For fiscal 2012, the company previously issued guidance of sales going up from $60 billion to a range of $68 billion to $72 billion, with kind of a midpoint of around $70 billion.
- On March 1, 2012, Caterpillar announced that Caterpillar Japan Ltd. (Caterpillar Japan) had acquired Caterpillar Tohoku Ltd. (Cat Tohoku), effective March 1. With the acquisition, Caterpillar Japan is restructuring its distribution network in Japan.
- On Feb. 10, 2012, Joy Global announced completion of the tender offer that its wholly owned Hong Kong subsidiary, Joy Global Asia Limited, conducted for the shares of International Mining Machinery Holdings Ltd. (IMM), a designer and manufacturer of underground mining equipment in China.
The stock has a market capitalization of $31.41 billion and is currently trading around $78.97, with a 52-week range of $59.92 to $89.70. The stock's year-to-date performance has been 3.30%. It is currently trading above the 20-day, 50-day, and 200-day SMAs.
Data sourced from Yahoo Finance, Google Finance, Marketwatch, Finviz, and Reuters.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in DE over the next 72 hours.