Earnings season is winding down, but there is still some excitement left for earnings-confessional spectators. Up tomorrow ahead of the opening bell is Deere & Co. (NYSE: DE), manufacturer of agricultural machinery.
Analysts are expecting per-share results of 57 cents, which represents a drop of 57% from the $1.32 banked in the year-earlier period. Year-over-year quarterly revenue growth, however, has not endured quite as dramatic a fall, slipping 16.7%.
As far as surprising the Street goes, Deere does not have a great track record. Briefing.com indicates that in four of the past five reporting periods, the company has issued a negative earnings surprise. On the plus side, it did top expectations last quarter, earning $1.11 per share compared to analysts' expectations of $1.07.
Up 13% so far in 2009, DE shares are still down 35% in the past 52 weeks. During the past few months, the stock has run into technical resistance overhead in the 45 region. The shares are currently in this neighborhood, which could make things interesting if earnings results aren't what investors are expecting.
Implied volatility hasn't really ramped up on DE options, relatively speaking, even as earnings approach. Since peaking at 125% last November (along with overall volatility in the options market), DE volatility readings have settled gradually lower and are currently hovering around the 55% mark, up from 54% last week. These readings compare, however, to historical 10-day volatility of 32%.
Beth works for The Options News Network (www.ONN.tv), which provides daily stock and options commentary. The above comments are not intended as trading advice.
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