How Will Deere (DE) Stock React to Q2 Earnings Tomorrow?
NEW YORK (TheStreet) -- Deere (DE) - Get Report stock is down 0.31% to $82.34 in early afternoon trading Thursday ahead of the company's fiscal 2016 second quarter financial report, due out before the opening bell on Friday.
The Moline, IL-based manufacturer of agriculture and construction equipment is expected to deliver a year-over-year drop in earnings per share and revenue tomorrow morning.
Wall Street is anticipating earnings of $1.48 per share on revenue of $6.72 billion for the latest quarter.
Last year, Deere posted a profit of $2.03 per share on revenue of $8.17 billion for the fiscal 2015 second quarter.
"The recent quarter has been an interesting one for soft commodities with weather issues in [South America] providing price support (for soybeans especially) and likely more U.S. planted acres of corn and beans combined," JPMorgan analysts wrote in a note released before today's market open.
Additionally, analysts maintained an "underweight" rating and a $69 price target on Deere, and expect management to provide updates for the full year, including information on regional agriculture markets.
Separately, Deere has a "buy" rating and a letter grade of B at TheStreet Ratings because of the company's respectable return on equity which is likely to continue and offset weak earnings per share growth.
You can view the full analysis from the report here: DE
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
