Deere & Co. (NYSE: DE) is set to report its most recent quarterly results before the markets open on Friday. Thomson Reuters consensus estimates are calling for $1.95 in earnings per share (EPS) and $6.92 billion in revenue. The fiscal third-quarter from last year reportedly had EPS of $1.55 and $5.86 billion in revenue.
During this quarter, Deere said that it signed a definitive agreement to purchase privately held Wirtgen Group in an all-cash transaction valued at about $5.2 billion, including the assumption of Wirtgen’s debt. The cash portion of the deal is valued at around $4.89 billion.
While the company’s outlook has improved this year as shares have raced higher, some analysts see the premium valuation restricting upside to the shares over the next year.
Excluding Thursday’s move, Deere has outperformed the U.S. broad markets, with the stock up about 23% year to date. Over the past 52 weeks, the stock is up 63%.
Last quarter, management said that It is seeing modestly higher overall demand for Deere’s products, with farm machinery sales in South America experiencing a strong recovery. The company’s performance also reflects the sound execution of management’s operating plans, the strength of a broad product portfolio and the impact of its actions to develop a more agile cost structure.
Prior to the release of the earnings report a few analysts weighed in on Deere:
- BMO Capital Markets has an Outperform rating with a $150 price target.
- Merrill Lynch has a Neutral rating with a $145 price target.
- Deutsche Bank has a Hold rating and a $139 price target.
- Jefferies has a Hold rating with a $125 price target.
- Goldman Sachs has a Buy rating.
- Berenberg Bank has a Sell rating and a $90 price target.
- Citigroup has a Buy rating with a $150 price target.
- Barclays has a Sell rating with a $100 price target.
Shares of Deere were last seen down about 2% at $124.33 on Thursday, with a consensus analyst price target of $133.50 and a 52-week range of $76.73 to $132.50.