Deere & Company DE is scheduled to report third-quarter fiscal 2025 results on Aug. 14, before the opening bell.

The Zacks Consensus Estimate for Deere’s earnings has moved up 0.4% over the past 60 days to $4.62 per share. The consensus mark implies a 26.6% plunge from the year-ago actual. The consensus estimate for revenues is pegged at $10.3 billion, indicating a 9.9% year-over-year decline.Zacks Investment Research

Image Source: Zacks Investment Research

DE’s Solid Earnings Surprise History

Deere’s earnings beat the Zacks Consensus Estimates in each of the trailing four quarters, with the average surprise being 11.1%.Zacks Investment Research

Image Source: Zacks Investment Research

What the Zacks Model Predicts for Deere

Our model predicts 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 precisely the case here. 

Earnings ESP: The Earnings ESP for Deere is +0.58%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Zacks Rank: Deere currently carries 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 Q3 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 third-quarter performance. 

High production expenses, selling, administrative and general expenses, and research and development 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 second quarter.

Projections for Deere’s Segments in Q3

Our model predicts the Production & Precision Agriculture segment’s revenues to be $4.30 billion for the fiscal third quarter, suggesting a year-over-year decrease of 15.6%. We expect the segment’s operating profit to be $583 million, indicating a 49.8% fall from the prior-year quarter’s reported figure. Gains from price realization are likely to have been offset by escalated production expenses and lower shipment volumes.

Our estimate for the Small Agriculture & Turf segment’s revenues is pegged at $2.68 billion for the fiscal third quarter, indicating a 12.3% decline from the prior-year quarter’s actual. The segment’s operating profit is estimated at $359 million, suggesting a 27.7% year-over-year fall. The Small Agriculture & Turf segment’s performance is expected to have been affected by increased production expenses, higher research and development, and selling, general and administrative expenses, and lower shipment volumes, partially offset by price realization.

The Construction & Forestry segment’s sales are estimated to be $3.21 billion for the fiscal third quarter, suggesting a 0.7% dip from the prior-year quarter’s reported number on lower volume. We predict the segment’s operating profit to plunge 43.2% year over year to $942 million.

Our estimate for the Financial Services segment’s revenues is pegged at $1.56 billion for the fiscal third quarter, indicating a 5.1% rise from the year-ago quarter’s actual. Our projection for the segment’s operating profit is $204 million. The segment reported operating profit of $191 million in the prior-year quarter.

Story Continues

DE Stock’s Price Performance

Shares of the company have gained 49% in the past year compared with the industry’s 46.1% growth.Zacks Investment Research

Image Source: Zacks Investment Research

A Look at Deere’s Peer Performances

AGCO Corp. AGCO delivered an adjusted EPS of $1.35 in the second quarter of 2025 compared with the prior-year quarter’s $2.53. The reported figure topped the Zacks Consensus Estimate of $1.06.

AGCO’s net sales decreased 18.8% year over year to $2.36 billion in the June-end quarter. The top line beat the Zacks Consensus Estimate of $2.48 billion. 

CNH Industrial N.V. CNH reported second-quarter 2025 adjusted earnings per share (EPS) of 17 cents, which declined from 38 cents in the prior-year quarter. The figure, however, surpassed the Zacks Consensus Estimate of 16 cents.

In the second quarter, CNH’s net sales declined nearly 14% from the year-ago level to $4.71 billion but topped the Zacks Consensus Estimate of $4.53 billion. The company’s net sales from industrial activities came in at $4.02 billion, down 16% due to lower industry demand.

Lindsay Corporation LNN delivered adjusted EPS of $1.78 in the third quarter of fiscal 2025 (ended on May 31, 2025), beating the Zacks Consensus Estimate of $1.36. The company reported earnings of $1.85 in the year-ago quarter. Including an income tax credit of 44 cents per share, EPS in the third quarter of fiscal 2024 were $1.41.

Lindsay generated sales of $169.5 million, up 22% from the $139 million reported in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $162 million.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Lindsay Corporation (LNN):Free Stock Analysis Report

Deere & Company (DE):Free Stock Analysis Report

AGCO Corporation (AGCO):Free Stock Analysis Report

CNH Industrial N.V. (CNH):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

View Comments