Deere & Company DE is scheduled to report second-quarter fiscal 2026 results on May 21 before the opening bell.
The Zacks Consensus Estimate for Deere’s earnings has been unchanged over the past 60 days at $5.81 per share. The consensus mark implies a 12.5% plunge from the year-ago actual. The consensus estimate for revenues is pegged at $11.4 billion, indicating a 2.3% year-over-year increase.
DE’s Earnings Surprise History
Deere’s earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and missed in one, the average surprise being 11.2%.
What the Zacks Model Predicts for Deere
Our model does not predict an earnings beat for DE this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here.
Earnings ESP: The Earnings ESP for Deere is -8.26%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: Deere currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Factors Likely to Have Shaped DE’s Q2 Performance
Deere has been facing challenges due to weak farmer spending amid low commodity prices. In the wake of challenging conditions in the global agricultural and construction sectors, DE has been aligning its production with demand levels.
This is likely to have weighed on the company’s fiscal second-quarter performance. High production expenses are also likely to have impacted the company’s margin in the quarter.
Nevertheless, favorable price realization is expected to have negated some of these headwinds, as seen in the fiscal first quarter.
Projections for Deere’s Segments in Q2
The Zacks Consensus Estimate for the Production & Precision Agriculture segment’s revenues is pegged at $4.51 billion for the fiscal second quarter, suggesting a year-over-year decrease of 13.7%. Gains from price realization are likely to have been offset by escalated production expenses and lower shipment volumes. The Zacks Consensus Estimate for the segment’s operating profit is pegged at $719 million, indicating a 37.6% decrease from the prior-year quarter’s reported figure.
The consensus estimate for the Small Agriculture & Turf segment’s revenues is pegged at $3.42 billion for the fiscal second quarter, implying a 14% increase from the prior-year quarter’s actual. The segment’s operating profit is estimated at $596 million, suggesting 3.8% year-over-year growth.
The Construction & Forestry segment’s sales are pegged at $3.54 billion for the fiscal second quarter, implying a 20.1% rise from the prior-year quarter’s reported number. The segment’s operating profit is pegged at $427 million, whereas it reported $379 million in the prior year.
The estimate for the Financial Services segment’s revenues is pegged at $1.41 billion for the fiscal second quarter, indicating a 2.2% rise from the year-ago quarter’s actual. The projection for the segment’s operating profit is $170 million. The segment reported operating profit of $207 million in the prior-year quarter.
DE Stock’s Price Performance
Shares of the company have gained 7.4% in the past year compared with the industry’s 3.8% growth.
A Look at Deere’s Peer Performances
Lindsay Corporation LNN delivered earnings per share of $1.15 in second-quarter fiscal 2026 (ended Feb. 28, 2026, missing the Zacks Consensus Estimate of $1.60. The bottom line decreased 53% year over year.
Lindsay generated revenues of $158 million, down from $187 million in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $165 million.
AGCO Corp. AGCO reported an adjusted EPS of 94 cents in first-quarter 2026 compared with the prior-year quarter’s 41 cents. The reported figure topped the Zacks Consensus Estimate of 44 cents.
AGCO revenues increased 14.2% year over year to $2.34 billion in the March-end quarter. The top line beat the Zacks Consensus Estimate of $2.30 billion.
CNH Industrial N.V. CNH registered first-quarter 2026 earnings of a penny per share, down 90% year over year. The reported number was in line with the Zacks Consensus Estimate.
CNH Industrial’s revenues were $3.83 billion, down 0.1% from the year-ago quarter. The top line beat the consensus estimate of $3.78 billion by 1.11%, aided by favorable currency impacts and pricing actions.
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Lindsay Corporation (LNN): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).