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Earnings highlights: HP, Campbell, Deere, Tiffany, Xerox, Borders and others

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Upcoming earnings releases include Sears (NASDAQ: SHLD), Staples (NASDAQ: SPLS), Aeropostale (NYSE: ARO), Del Monte Foods (NYSE: DLM), Guess (NYSE: GES), Novell (NASDAQ: NOVL), Toll Brothers (NYSE: TOL), Big Lots (NYSE: BIG), Royal Bank of Canada (NYSE: RY).

Visit AOL Money & Finance for more earnings coverage.

The week in preview: Holiday week earnings

The earnings season is beginning to wind down as we have passed the halfway mark of the quarter and the holiday season begins in earnest next week with Thanksgiving in the United States.

Bermuda-based Frontline Ltd. (NYSE: FRO) is anticipated by analysts surveyed by Thomson Reuters to be one of the biggest earnings gainers among companies scheduled to report quarterly results this coming week. The oil tanker fleet operator is expected to post third-quarter earnings of $1.97 per share, 86.8% higher than in the same period a year ago, on revenues of $399.5 million (+44.6%). Frontline missed estimates by 6.4% in the previous quarter, and the consensus recommendation by analysts is to hold FRO. While Motley Fool likes its robust dividend, Jim Cramer said in a recent Lightning Round that he prefers rival Nordic American Tanker Shipping Ltd. (NYSE: NAT). Shares have fallen 52.9% in the past three months, and reached a 52-week low of $25.00 on Friday.

Analog Devices Inc. (NYSE: ADI) is also expected to be among the week's biggest earnings gainers. Analysts are looking for the semiconductor chip maker to report a fiscal fourth-quarter profit of $0.44 per share, 31.8% higher than a year ago, on revenues of $661.7 million (+2.0%). Analog Devices has beat estimates in three of the past five quarters, but only missed by 1.3% in the previous quarter. Analysts on average recommend buying ADI, which has a forecast long-term EPS growth rate of 17.3%, which better than the S&P 500 and that of rival Texas Instruments Inc. (NYSE: TXN). Shares sank to a multiyear low of $16.23 on Friday, and are down 41.1% in the past three months.

Continue reading The week in preview: Holiday week earnings

Earnings highlights: Wal-Mart, JCPenney, MBIA, Deere, Applied Materials and others

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Also, Jim Cramer warns against bearishness on the financials and also suggests that the collapse of commodities will buoy earings.

For more highlights from this week, see: Abercrombie, Macy's, Kohl's, Sirius, UBS, Wachovia and others

Upcoming quarterly reports include Lowe's (NYSE: LOW), Home Depot (NYSE: HD), Hewlett-Packard (NYSE: HPQ), Target (NYSE: TGT), La-Z-Boy (NYSE: LZB), Saks (NYSE: SKS), BJ's Wholesale (NYSE: BJ), Limited Brands (NYSE: LTD), Barnes & Noble (NYSE: BKS), Burger King (NYSE: BKC), Gap (NYSE: GPS), Heinz (NYSE: HNZ), and Intuit (NASDAQ: INTU).

Visit AOL Money & Finance for more earnings coverage.

Earnings highlights: Goldman Sachs, Best Buy, General Mills, Carnival and others

Here are some highlights from this past week's earnings coverage from BloggingStocks:

More earnings highlights from this week: Morgan Stanley, FedEx, Ford, GE, Circuit City and others

Continue reading Earnings highlights: Goldman Sachs, Best Buy, General Mills, Carnival and others

Is Toro worth a look?

Toro (NYSE: TTC), maker of lawn and snow-throwing equipment and competitor of Deere (NYSE: DE) and Black and Decker (NYSE: BDK), seems to be hitting a rough patch because of the weakened economy. The top line decreased to about $639 million in net sales for the second quarter. Earnings per share skidded almost 10% to $1.60. That was good enough to beat expectations by a penny, as Briefing.com pointed out, but make no mistake about it this was not an impressive quarter.

The company also sported negative operational cash flow. Although Toro used less cash, it still needed $111 million to keep corporate activities going. A look at the most recent 10-K shows that Toro has been generating positive annual cash flows over the last few years, so I wouldn't necessarily worry about this cash-flow statement for now, as it most likely will improve as the year goes on. As a matter of fact, management said in the earnings release that it was confident about the cash flow and intended to repurchase more shares.

But Toro doesn't expect much in the way of growth for the coming year. Guidance calls for flat top-line growth in fiscal 2008 and for net earnings per share to either be flat or to fall 5%. Not an inspirational forecast, let me tell you. With the stock pretty near a 52-week low and with the dividend yield not as high as I'd like, I don't see a reason why an investor should be fooling with Toro right now.

Yes, I do see that management seems confident in the future, and who knows, you could be getting a value here since this is a powerful brand, but I think the shares might be pressured in the coming months if energy costs continue to rise and inflation remains a concern (interestingly enough, Toro shares did rebound in the after-hours session on Thursday after being sold throughout the day in regular trading). No, this isn't the end of Toro, but for me, I'm not inclined to put money to work here until I see at least some strength in the stock.

Disclosure: I don't own shares in any company mentioned; positions can change at any time.

Earnings highlights: Deere, Freddie Mac, Applied Materials, Barclay's and others

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Continue reading Earnings highlights: Deere, Freddie Mac, Applied Materials, Barclay's and others

Option Update: Deere volatility elevated; shares weak on guidance

Deere (NYSE: DE) was trading at $84.99 in early trading, below its close of $90.19 Tuesday.

DE reported Q2 EPS of $1.74 versus consensus estimates of $1.75.

Goldman Sachs says: "Estimates and price target are under review."

DE May 90 straddle closed at $5.95, June at $11.10. DE June option implied volatility of 47 is above its 26-week average of 43 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Earnings preview: Is Deere still running?

logoAnalysts believe that Deere & Co. (NYSE: DE) has kept its hand on the plow. The general analyst consensus indicates solid expectations that the company will continue to perform at or above expectations. According to AOL Money and Finance, analysts are giving indications that Deere is a buy. In defiance of today's market pull back, Deere & Co. shares have gained one half percent as of this writing.

Media sources are openly optimistic about Deere & Co., though actual commentary is sorely lacking. Barron"s did go far enough to cite that some strategic execution failures of Deere competitors have played nicely for the company. With the weakened dollar giving solid momentum to Deere's international growth focus, and Deere equipment systems showing robust independent sales, for the time being the company appears to be a relatively safe harbor for longer term investment dollars.

Year to date return on Deere is just above a negative 3%, but the 5 year return on this company is over 300%. The best earnings estimates that I can lay a hand on hover around $1.75 per share.

Gary Sattler is a freelance blogger. He does not knowingly hold investment positions in the companies mentioned in this blog post.

Earnings highlights: AIG, Fannie Mae, Toyota, Warner Music, Qwest, MGM and others

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Continue reading Earnings highlights: AIG, Fannie Mae, Toyota, Warner Music, Qwest, MGM and others

Earnings highlights: Anadarko, Disney, Coors, Unilever, Activision, Marvel and others

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Continue reading Earnings highlights: Anadarko, Disney, Coors, Unilever, Activision, Marvel and others

Cramer on BloggingStocks: A dollar rebound won't kill the ag stocks

TheStreet.com's Jim Cramer says the bull story here has more causes than just a weak greenback.

Better seeds and more fertilizer. That's it. Those are the technology weapons in the war against food shortages caused in the short term by a worldwide obsession with biofuels (we are the worst offender, of course) and in the long term by the increased affluence in China and India, which leads to more nutritious, protein-filled diets.

Both forces, when combined with worldwide droughts and failed harvests, not augmented by the U.S. -- we are late to start with our corn season -- are driving prices up to ridiculous levels. I have no doubt that if tomorrow the president of the United States said he was suspending the biofuel mandates for ethanol that we would see a collapse in food pricing. But I also have no doubt that this inept administration could never figure that out.

So, the solution comes to all of the stocks that were crushed yesterday: Monsanto (NYSE: MON) (Cramer's Take), Potash (NYSE: POT) (Cramer's Take), Mosaic (NYSE: MOS) (Cramer's Take) and Agrium (NYSE: AGU) (Cramer's Take). Without better seeds that produce higher yields, without more fertilizer that increases yields, we are going to be facing a long-term continuation of these price increases and the attendant inflation and food riots. Inflation, by the way, that has nothing to do with the Fed, unless the Fed is also a big granary hoarding wheat and corn.

Continue reading Cramer on BloggingStocks: A dollar rebound won't kill the ag stocks

Deere (DE) boosted by CAT earnings

DE logoDeere & Co. (NYSE: DE) shares are trading higher after after competitor Caterpillar (NYSE: CAT) posted a first-quarter profit of $922 million, or $1.45 per share, beating analyst estimates of $1.33 per share. This could be a good sign for DE, which reports earnings next month. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on DE.

After hitting a one-year low of $53.75 last May, the stock hit a one-year high of $94.77 in January. DE opened this morning at $91.00. So far today the stock has hit a low of $91.00 and a high of $94.80. As of 11:40, DE is trading at $94.10, up $4.66 (5.2%). The chart for DE looks neutral and improving, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider a June bull-put credit spread below the $72.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 5.3% return in just two months as long as DE is above $72.50 at June expiration. Deere would have to fall by more than 23% before we would start to lose money. Learn more about this type of trade here.

DE hasn't been below $75 since November and has shown support around $80 recently. This trade could be risky if energy costs fall off some, since that would lower the demand for agricultural accessories, but even if that happens, this position could be protected by the support the stock might find from its 200 day moving average, which is currently around $77 and rising.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in DE or CAT.

It's OK to like Deere here

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and which have a competitive advantage in established markets, preferably with a favorable global trend as a support. And with the above in mind, Deere & Co. (NYSE: DE) is worth an evaluation.

Deere, one of the two largest manufacturers of farm equipment in world and a leader in construction and lawn care equipment, is well-positioned to take advantage of several, long-term, global trends. Chief among these are strong international agricultural and international construction/building activity and an expanding international market for consumer equipment sales.

Solid, enduring growth in international agricultural markets is the standout fundamental here, with the segment's revenue growth expected to offset slumps in equipment sales for the cooling U.S. housing market. Other positives: DE's costs remain under control, its balance sheet is strong, and agriculture equipment market conditions suggest the company has modest pricing power. Further, increased use of renewable fuels is likely to add to demand for DE's equipment, assuming at least one renewable fuel gains traction as a practical, affordable alternative to petroleum-based energy.

Continue reading It's OK to like Deere here

Volatility Option Update: Deere volatility elevated on robust agriculture commodity prices

Deere (NYSE: DE), which closed at $81.25 Monday, is trading at $83.55 recently.

Wheat futures are up 1.92% to 1224 and Corn futures are up 1.02% to $571.50 according to Bloomberg.

DE overall option implied volatility of 46 is above its 26-week average of 41 according to Track Data, suggesting larger price movement.

Volatility Index S&P 500 Options-VIX down 1.94 to 27.44.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Earnings highlights: Coca-Cola, Deere, Abercrombie, Baidu, Playboy, Taser and others

Here are a few highlights of this past week's earnings coverage from BloggingStocks:

Upcoming results to watch for include Wal-Mart (NYSE: WMT), Hewlett-Packard (NYSE: HPQ), OfficeMax (NYSE: OMX), Whole Foods (NASDAQ: WFMI), MGM Mirage (NYSE: MGM), JCPenney (NYSE: JCP), and Safeway (NYSE: SWY).

Visit AOL Money & Finance for more earnings coverage.

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Last updated: February 10, 2012: 06:02 AM

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