-0.37%
-0.52%
John Deere, the premier tractor manufacturer is scheduled to report their fiscal q1 ’12 earnings before the bell on Wednesday morning with analyst consensus looking for $1.24 in eps (vs $1.20 last year) on $6.5 bl in revenue (versus $5.5 bl the prior year) for expected y/y growth of 3% and 18% respectively.
The recent WASDE (Workld Agriculture Supply & Demand) report was thought to be a plus for corn prices and thus DE, as earnings estimates continue to creep higher.
The current 2012 and 2012 eps estimates for DE are $7.81 and $8.25 for expected growth this year and next of 18% and 6% respectively. At $88 per share DE is trading at 11(x) and 10(x) forward eps for what is a blended 12% growth rate (expected) over the next few years, so on a p/e basis the stock is pretty reasonably valued. In addition, DE is trading about 1(x) price to 4-qtr trailing sales.
Id wait and see what tomorrow looks like. To clearly technically break out, DE needs to trade over $100 on volume, and i dont know if the 2012 results will be there to get the stock over that level.
DE management has been very cautious over Europe and baked that into their guidance so the US and the continued healthy ag environment will likely be the catalyst for any upward momentum.
Deere has had a nice run since the last earnings report - clearly overbought on the daily chart, but not so much so on the weekly chart.
Long DE
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