Deere and Company (NYSE:DE) is facing a recent recession and regularly reports quarterly revenue and revenue declines following the boom during the pandemic. For agricultural and construction equipment manufacturers, the de-escalation of a tariff-driven trade war is good news as long-term tensions can lead to lower demand and rising costs. As a dominant player in the US agricultural sector, the company appears to be suited to maintain its competitive advantage and brand strength over the long term.
estimate
Deer’s second quarter 2025 report is expected to be released on May 15th before the market opens. Analysts following the business are less optimistic about their second quarter results. We expect revenue to fall 21% to $10.79 billion. It is estimated that second quarter revenues fell sharply to $5.64 per share from $8.53 per share for the same period in fiscal year 2024.
The company’s stock has maintained positive momentum in recent sessions, approaching a record high that reached February. It has so far earned around 18%, consistently surpassing major stock indexes. Investors need to consider the insufficient financial performance of the company before investing, but stock resilience amidst market headwinds reflects positive sentiment. Given the recent quarterly decline in sales and profits, the ratings seem to be high.
Weak consequences
In the first three months of fiscal year 2025, Deer’s global net sales and revenue fell 30% annually to $800 billion. Sales fell across the main operation segment. Management said they expect the downward trend to extend for the remainder of the year. Net income was nearly half year-on-year to $3.19 per share in the first quarter. For fiscal year 2025, the company expects its net profit to range from $5 billion to $5.5 billion. Deer has a strong track record of regularly breaking analyst estimates.
From Deere & Company’s revenue calls from the first quarter:
“We are focusing on our unwavering commitment to our customers as we have before, and will continue to prioritize investing in the most value-added solutions for them. We will continue to expand our accuracy delivery across both our product line and geography, ensuring the basic needs of customer quality, operation and productivity. World.”
hurdle
Recently, farmers have been cautious about spending on agricultural equipment due to inflation and economic uncertainty.. That, coupled with pricing pressures and lower demand for equipment, remains the main challenge facing the company. On the positive side, Deer often demonstrated his ability to protect revenues through effective cost management. In the most recent quarter, the financial services business has been working well. This is a trend we expect to continue.
On Monday, Deer’s shares traded higher early, but compared some of the profits outside of business hours in the previous session. The average stock price for the past 52 weeks was $419.99. The stock has won over 20% in the last 12 months.
