Deere & Company (NYSE:DE)
On Friday morning before the market opened, Deere & Co. (DE) announced second-quarter earnings that were slightly better than analyst expectations but were down big from the same period ending last year. The company announced earnings per share of $1.56 on $7.88 billion in revenues while analysts were looking for $1.47 earnings per share. This is also compared to the same period last year where the company announced $2.03 earnings per share. The loss the company reported was much less than feared due to excellent cost management and leadership. Currently analysts have an average price target of $76.25.
Looking at the chart you will see that shares are slightly down after reporting earnings as they are currently trading at $81.30 after closing Thursday at $82.26, a 1.1% drop in price. We should see some support come in at $81 followed by the 200-day moving average that is sitting at $79.57 while resistance will be met at $84 and $86. There is also some ascending support at the $78.50 level so keep an eye on that as well in case we see a selloff today. Ideally we will want to see share prices hold the 200-day moving average and start to make their way back up but if they don’t then this stock could be in for some lower prices this year. As of Thursdays close at $82.25, DE is up 8.5% on the year.
CEO Comments
John Deere’s second-quarter performance reflected the continuing impact of the downturn in the global farm economy and further weakness in the construction equipment sector,” said Samuel R. Allen, chairman and chief executive officer. “In the face of challenging market conditions, Deere’s businesses benefited from the sound execution of operating plans, the strength of a broad product portfolio and our success creating a more flexible cost structure.
Although our forecast calls for lower results this year in light of ongoing market pressures, Deere is continuing to perform at a much higher level than in previous downturns,” Allen said. “Deere’s financial condition remains strong and we believe the company is well-positioned to capitalize on attractive growth opportunities that will deliver value to our customers and investors in the future. At the same time, we are continuing to focus on ways to streamline our operations and make them more efficient and profitable.
DE Profile
Deere & Company is engaged in equipment operations and financial services. The Company operates through three business segments: agriculture and turf, construction and forestry, and financial services. The Company’s agriculture and turf segment primarily manufactures and distributes a full line of agriculture and turf equipment and related service parts. The Company’s construction and forestry segment primarily manufactures and distributes a range of machines and service parts used in construction, earthmoving, material handling and timber harvesting. The Company’s financial services segment primarily provides credit services, which include finance sales and leases by John Deere dealers of new and used agriculture and turf equipment and construction and forestry equipment.