Shares of industrial machinery manufacturer Deere (DE) finished slightly up in today’s trading as investors await its Q3 earnings results on August 15 before the market opens. Analysts are expecting earnings per share to come in at $5.68 on revenue of $10.794 billion. This represents a decline from the $10.20 per share seen in the year-ago period, according to TipRanks’ data.
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However, it seems likely that the firm will beat earnings estimates, as it has done so for seven consecutive quarters, as pictured below. However, the beats have never been large enough for investors to hope it will be able to exceed last year’s figure.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a 5.54% move in either direction.
What Is the Outlook for John Deere Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on DE stock based on eight Buys, nine Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 17.4% decline in its share price over the past year, the average DE price target of $409.69 per share implies 16.63% upside potential.
