Deere, reporting FQ3 results tomorrow, faces a lean earnings harvest

Deere (NYSE:DE) shares got no help today from the U.S. government's update on grain crops, which said corn production and yields likely would both break records in 2014; the glut already had pushed the price per bushel to a four-year low last week and will continue to cut into farm incomes despite the higher volumes.

DE cut full-year sales guidance in May, which makes it unlikely the company will miss consensus earnings forecasts of $2.20/share (vs. $2.56 in the year-ago quarter) when it reports FQ3 results tomorrow, but it does not change the downward trend.

In a report call “AGpocalypse Now?,” Morgan Stanley's team worries that DE could be setting up for a repeat of the last agriculture equipment downturn in 1998-99.

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  • Investing Doc
    , contributor
    Comments (1039) | Send Message
    In other words, wait for a bit? Considering where DE is now compared to where it was over a decade ago, I'd be thrilled to have the stock at a discount.
    12 Aug 2014, 10:35 PM Reply Like
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