Benzinga | May 20, 2021 10:07AM EDT

A Preview Of Deere's Earnings

Deere (NYSE:DE) unveils its next round of earnings this Friday, May 21. Here is Benzinga's everything-that-matters guide for the earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see Deere reporting earnings of $4.52 per share on sales of $10.44 billion. In the same quarter last year, Deere reported earnings per share of $2.11 on sales of $9.25 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Friday, EPS would be up 114.22%. Revenue would be up 12.83% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this: Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020EPS Estimate 2.16 1.49 1.26 1.80EPS Actual 3.87 2.39 2.57 2.11Revenue Estimate 7.21 B 7.68 B 6.70 B 7.76 BRevenue Actual 8.05 B 8.66 B 8.93 B 9.25 B

Stock Performance

Over the last 52-week period, shares are up 151.09%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Deere is scheduled to hold the call at 10:00:00 ET and can be accessed here.