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721800.0
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2019-05-29 00:00:00 UTC
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Noteworthy Wednesday Option Activity: DVA, JNJ, DE
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DE
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-dva-jnj-de-2019-05-29
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in DaVita Inc (Symbol: DVA), where a total of 22,033 contracts have traded so far, representing approximately 2.2 million underlying shares. That amounts to about 139.3% of DVA's average daily trading volume over the past month of 1.6 million shares. Especially high volume was seen for the $42.50 strike put option expiring June 21, 2019, with 10,910 contracts trading so far today, representing approximately 1.1 million underlying shares of DVA. Below is a chart showing DVA's trailing twelve month trading history, with the $42.50 strike highlighted in orange:
Johnson & Johnson (Symbol: JNJ) options are showing a volume of 58,287 contracts thus far today. That number of contracts represents approximately 5.8 million underlying shares, working out to a sizeable 92.1% of JNJ's average daily trading volume over the past month, of 6.3 million shares. Especially high volume was seen for the $137 strike put option expiring May 31, 2019, with 4,960 contracts trading so far today, representing approximately 496,000 underlying shares of JNJ. Below is a chart showing JNJ's trailing twelve month trading history, with the $137 strike highlighted in orange:
And Deere & Co. (Symbol: DE) options are showing a volume of 18,101 contracts thus far today. That number of contracts represents approximately 1.8 million underlying shares, working out to a sizeable 69.6% of DE's average daily trading volume over the past month, of 2.6 million shares. Particularly high volume was seen for the $149 strike call option expiring June 21, 2019, with 6,292 contracts trading so far today, representing approximately 629,200 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $149 strike highlighted in orange:
For the various different available expirations for DVA options, JNJ options, or DE options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $42.50 strike put option expiring June 21, 2019, with 10,910 contracts trading so far today, representing approximately 1.1 million underlying shares of DVA. Especially high volume was seen for the $137 strike put option expiring May 31, 2019, with 4,960 contracts trading so far today, representing approximately 496,000 underlying shares of JNJ. Particularly high volume was seen for the $149 strike call option expiring June 21, 2019, with 6,292 contracts trading so far today, representing approximately 629,200 underlying shares of DE.
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That number of contracts represents approximately 5.8 million underlying shares, working out to a sizeable 92.1% of JNJ's average daily trading volume over the past month, of 6.3 million shares. That number of contracts represents approximately 1.8 million underlying shares, working out to a sizeable 69.6% of DE's average daily trading volume over the past month, of 2.6 million shares. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in DaVita Inc (Symbol: DVA), where a total of 22,033 contracts have traded so far, representing approximately 2.2 million underlying shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in DaVita Inc (Symbol: DVA), where a total of 22,033 contracts have traded so far, representing approximately 2.2 million underlying shares. Especially high volume was seen for the $42.50 strike put option expiring June 21, 2019, with 10,910 contracts trading so far today, representing approximately 1.1 million underlying shares of DVA. That number of contracts represents approximately 5.8 million underlying shares, working out to a sizeable 92.1% of JNJ's average daily trading volume over the past month, of 6.3 million shares.
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Especially high volume was seen for the $42.50 strike put option expiring June 21, 2019, with 10,910 contracts trading so far today, representing approximately 1.1 million underlying shares of DVA. Particularly high volume was seen for the $149 strike call option expiring June 21, 2019, with 6,292 contracts trading so far today, representing approximately 629,200 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $149 strike highlighted in orange: For the various different available expirations for DVA options, JNJ options, or DE options, visit StockOptionsChannel.com.
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04ed896d-932f-47b9-9ca0-71b2df612df7
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721801.0
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2019-05-23 00:00:00 UTC
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Deere's Outlook Dims, Just Don't Blame the Trade War
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DE
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https://www.nasdaq.com/articles/deeres-outlook-dims-just-dont-blame-trade-war-2019-05-23
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nan
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nan
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Just when you think Deere (NYSE: DE) might be getting over the worst of the impact of the U.S./China trade conflict, along comes another set of issues to trouble the company's earnings outlook. It's even more frustrating when you consider that Deere seemed about to see a notable improvement in its key North American large agricultural equipment in 2019. Let's take a look at what's going on with Deere, and what it means to the investment proposition.
Why Deere's prospects got worse
Deere's second-quarter earnings report saw the company's management lowering its sales, earnings, and cash-flow generation forecast for 2019. The reason? It's largely down to a worsening outlook for U.S. farm income and a heightened sense of uncertainty around prospects for grain farmers.
First, here's how Deere cut its guidance.
Data source: Deere presentations.
Now let's turn to the reasons why. CFO Ryan Campbell discussed three related issues, and each had an impact -- albeit to different degrees.
Weather-related planting delays have caused a delaying in purchasing agricultural equipment.
Ongoing uncertainty "around global trade and market access" coming from the trade dispute.
African swine fever has significantly reduced China's pig herd and therefore global demand for soybean meal -- not good news for grain farmers.
All three have negatively affected Deere, but do the issues detract from the long-term thesis for buying the stock?
Why Deere's stock is attractive
After all, Deere continues to forge ahead with its aim of expanding its precision agriculture solutions. Agriculture is one of the key beneficiaries of the Internet of Things (IoT), and Deere is at the forefront.
Moreover, Deere's management has made it clear that forecasted growth in its key agriculture and turf net sales for 2019 is coming from the replacement market, meaning there could still be a pickup in expansionary spending to come. For reference, Deere's guidance still calls for its worldwide agriculture and turf organic sales to rise 5%, with negative currency effects reducing the reported figure to a 2% rise.
What matters and what doesn't
Turning back to the three issues highlighted by Campbell, the first is relatively easy to deal with. Unfortunately, dealing with the vagaries of the weather are part and parcel of investing in the agricultural equipment sector, and it doesn't make sense to make long-term investment decisions based on one season's weather. If the underlying end demand is there, farmers will eventually spend on planters and sprayers even if bad weather has delayed planting.
The second two issues, namely trade conflict and African swine fever, are somewhat more complicated, but the key takeaway here is that the latter appears to be far more important than the former.
Trade conflict
The evidence behind this comes from a look at the latest United States Department of Agriculture (USDA) report on oilseeds. When the tariff war escalated in the summer of 2018, the most visible impact came from a significant increase in the spread between the price of Brazil's soybean exports and that of the U.S. The two usually track each other closely, but China's imposition of tariffs on the U.S. meant it would be demanding more from Brazil/Argentina. Consequently, by the middle of September, Brazil's export price was around $400 per ton, while the U.S. export price was as low as $300 per ton.
However, by the end of the year, the spread had closed, and according to the USDA data on the U.S. and Brazil, export prices are now similar, at around $320 per ton. In a nutshell, U.S. soybean farmers have done a good job of opening up new markets and selling to customers who might have formerly bought from Brazil, but who aren't now because China is buying more from Brazil as a result of tariffs on the U.S. The so-called filling of the gap.
Image source: Getty Images.
African swine fever
On the other hand, the USDA report is quite clear that
African Swine Fever (ASF) in China will be a game changer for the global oilseed complex, and soybeans in particular, in the coming years. China's Ministry of Agriculture and Rural Affairs reporting that the pig herd has declined by 20 percent since ASF was first reported in early August 2018.
The report goes on: "Consequently, large global supplies and lower demand in China will continue to pressure soybean prices; a situation that will likely continue as the industry adjusts to ASF."
Clearly, the issue is going to take time to resolve, and the outlook for one of the key farming crops appears to be dimming.
What it means to investors
In the long term, Deere's stock still has attractions -- not least of which is the secular trend of precision agriculture, and at some point, the large agricultural equipment market will surely turn up again. However, the deteriorating outlook for soybean is likely to hang over the stock for a while, and the company's earnings could be challenged as a consequence.
10 stocks we like better than Deere & Company
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 1, 2019
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Just when you think Deere (NYSE: DE) might be getting over the worst of the impact of the U.S./China trade conflict, along comes another set of issues to trouble the company's earnings outlook. African swine fever has significantly reduced China's pig herd and therefore global demand for soybean meal -- not good news for grain farmers. It's even more frustrating when you consider that Deere seemed about to see a notable improvement in its key North American large agricultural equipment in 2019.
|
Why Deere's prospects got worse Deere's second-quarter earnings report saw the company's management lowering its sales, earnings, and cash-flow generation forecast for 2019. African swine fever has significantly reduced China's pig herd and therefore global demand for soybean meal -- not good news for grain farmers. Just when you think Deere (NYSE: DE) might be getting over the worst of the impact of the U.S./China trade conflict, along comes another set of issues to trouble the company's earnings outlook.
|
Why Deere's prospects got worse Deere's second-quarter earnings report saw the company's management lowering its sales, earnings, and cash-flow generation forecast for 2019. Why Deere's stock is attractive After all, Deere continues to forge ahead with its aim of expanding its precision agriculture solutions. What it means to investors In the long term, Deere's stock still has attractions -- not least of which is the secular trend of precision agriculture, and at some point, the large agricultural equipment market will surely turn up again.
|
Just when you think Deere (NYSE: DE) might be getting over the worst of the impact of the U.S./China trade conflict, along comes another set of issues to trouble the company's earnings outlook. African swine fever has significantly reduced China's pig herd and therefore global demand for soybean meal -- not good news for grain farmers. What it means to investors In the long term, Deere's stock still has attractions -- not least of which is the secular trend of precision agriculture, and at some point, the large agricultural equipment market will surely turn up again.
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fd01acf1-481f-463f-a5b1-2a8446a36507
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721802.0
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2019-05-20 00:00:00 UTC
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PayPal Stock Will Continue to Ring the Register for Investors
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DE
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https://www.nasdaq.com/articles/paypal-stock-will-continue-ring-register-investors-2019-05-20
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nan
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nan
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PayPal (NASDAQ:) has been ringing the register for shareholders in 2019. And off and on the chart, that looks set to continue in PayPal stock. Let me explain.
Source:
Does the U.S. and China’s trade war and its potential implications on consumers and businesses have you concerned? In Friday’s trading, it certainly had Wall Street’s attention.
The S&P 500 fell by roughly 0.50%, while PayPal stock found itself under even more duress — shedding about 1%. Peer-mobile payments play Square (NYSE:) is off 1.25%. But the potential real losers are companies like Apple (NASDAQ:) which is down a bit more than 2% or the 4.5% bashing in Deere (NYSE:).
Behind the market’s U-turn is the optimism of the past couple days that the world’s two largest economies could find a quick fix quickly faded after Chinese state media deferred expectations for a deal at next month’s G-20 summit meeting in Japan. But don’t think for a second this is what really matters for PayPal stock.
Despite persistent and nagging uncertainties, it’s important to focus on the big picture for PayPal stock and not quick-to-flip, daily-market-based, back-and-forth cheers and jeers. And bottom, top and squiggly price lines — following last month’s led by the company’s sizzling digital wallet Venmo business and an equally beneficial price chart showing more than just hopeful promise, it’s time to consider going long PayPal stock.
PayPal Stock Weekly Price Chart
It’s been a good year for PayPal stock. Shares are up 32% for 2019 and have captured 20% since breaking out of PYPL stock’s year-long, base-on-base pattern in late January. So, what next? I see more upside potential.
I believe technically shares can match the gains of the prior bullish leg from April 2017’s breakout near $45 to the high of 2018’s year-long congestive base. Some investors refer to this type of continuation action as a mirror move or two-step pattern. And in this instance, should it play out that way, PayPal stock should rally towards $140-$150.
There’s no guarantees of course. And PYPL stock’s weekly stochastics are currently overbought. Still, if price and volume matter most, Thursday’s relative strength breakout on increased volume to fresh highs from a short two plus week flat base does look compelling.
For like-minded investors I’d recommend buying PayPal stock above $115.39. This entry is 1.5% through the pattern high and about .5% north of Thursday’s high of $114.66.
The purchase obviously sacrifices a tiny bit of upside. But if we’re correct about the PYPL’s trajectory, it’s well worth the cost as this strategy looks to avoid buying a false breakout after the broader market’s quick snap back from its trade war panic.
Disclosure: Investment accounts under Christopher Tyler’s management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter and StockTwits.
The post appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite persistent and nagging uncertainties, it’s important to focus on the big picture for PayPal stock and not quick-to-flip, daily-market-based, back-and-forth cheers and jeers. But if we’re correct about the PYPL’s trajectory, it’s well worth the cost as this strategy looks to avoid buying a false breakout after the broader market’s quick snap back from its trade war panic. PayPal (NASDAQ:) has been ringing the register for shareholders in 2019.
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PayPal (NASDAQ:) has been ringing the register for shareholders in 2019. Source: Does the U.S. and China’s trade war and its potential implications on consumers and businesses have you concerned? The S&P 500 fell by roughly 0.50%, while PayPal stock found itself under even more duress — shedding about 1%.
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And bottom, top and squiggly price lines — following last month’s led by the company’s sizzling digital wallet Venmo business and an equally beneficial price chart showing more than just hopeful promise, it’s time to consider going long PayPal stock. PayPal (NASDAQ:) has been ringing the register for shareholders in 2019. Source: Does the U.S. and China’s trade war and its potential implications on consumers and businesses have you concerned?
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But the potential real losers are companies like Apple (NASDAQ:) which is down a bit more than 2% or the 4.5% bashing in Deere (NYSE:). PayPal (NASDAQ:) has been ringing the register for shareholders in 2019. Source: Does the U.S. and China’s trade war and its potential implications on consumers and businesses have you concerned?
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fe33c0c8-cdcd-4605-aa12-ef1d5a1bf9c4
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721803.0
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2019-05-17 00:00:00 UTC
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Consumer Sector Update for 05/17/2019: WTRH,UA,UAA,DE
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DE
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https://www.nasdaq.com/articles/consumer-sector-update-for-05-17-2019%3A-wtrhuauaade-2019-05-17
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nan
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nan
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Top Consumer Stocks
WMT -0.25%
MCD -0.23%
DIS +0.01%
CVS +1.51%
KO -0.40%
Consumer stocks still were narrowly higher this afternoon, with shares of consumer staples companies in the S&P 500 climbing nearly less than 0.1% while shares of consumer discretionary firms in the S&P 500 also were ahead almost 0.1%.
Among consumer stocks moving on news:
(+) Waitr Holdings (WTRH) was more than 2% higher in recent trade, reversing a nearly 4% decline soon after the opening bell. The online food-delivery service Friday priced a $50 million public offering of 6.76 million shares of its common stock at $7.40 each, representing a 5.2% discount to Thursday's closing price.
In other sector news:
(+) Under Armour (UA,UAA) was up almost 7% after JPMorgan raised its investment recommendation on the athletic wear company to overweight from neutral and also increased its price target for the company's shares by $6 to $29 apiece.
(-) Deere & Company (DE) declined over 6% on Friday after the lawn and farm equipment company lowered its FY19 sales forecast and also reported Q1 net income trailing Wall Street expectations. It is now projecting a 5% revenue increase over FY18 levels, down from its prior guidance expecting 7% growth.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Among consumer stocks moving on news: (+) Waitr Holdings (WTRH) was more than 2% higher in recent trade, reversing a nearly 4% decline soon after the opening bell. In other sector news: (+) Under Armour (UA,UAA) was up almost 7% after JPMorgan raised its investment recommendation on the athletic wear company to overweight from neutral and also increased its price target for the company's shares by $6 to $29 apiece. The online food-delivery service Friday priced a $50 million public offering of 6.76 million shares of its common stock at $7.40 each, representing a 5.2% discount to Thursday's closing price.
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The online food-delivery service Friday priced a $50 million public offering of 6.76 million shares of its common stock at $7.40 each, representing a 5.2% discount to Thursday's closing price. Among consumer stocks moving on news: (+) Waitr Holdings (WTRH) was more than 2% higher in recent trade, reversing a nearly 4% decline soon after the opening bell. In other sector news: (+) Under Armour (UA,UAA) was up almost 7% after JPMorgan raised its investment recommendation on the athletic wear company to overweight from neutral and also increased its price target for the company's shares by $6 to $29 apiece.
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In other sector news: (+) Under Armour (UA,UAA) was up almost 7% after JPMorgan raised its investment recommendation on the athletic wear company to overweight from neutral and also increased its price target for the company's shares by $6 to $29 apiece. (-) Deere & Company (DE) declined over 6% on Friday after the lawn and farm equipment company lowered its FY19 sales forecast and also reported Q1 net income trailing Wall Street expectations. Among consumer stocks moving on news: (+) Waitr Holdings (WTRH) was more than 2% higher in recent trade, reversing a nearly 4% decline soon after the opening bell.
|
The online food-delivery service Friday priced a $50 million public offering of 6.76 million shares of its common stock at $7.40 each, representing a 5.2% discount to Thursday's closing price. In other sector news: (+) Under Armour (UA,UAA) was up almost 7% after JPMorgan raised its investment recommendation on the athletic wear company to overweight from neutral and also increased its price target for the company's shares by $6 to $29 apiece. Among consumer stocks moving on news: (+) Waitr Holdings (WTRH) was more than 2% higher in recent trade, reversing a nearly 4% decline soon after the opening bell.
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1fe93130-08dc-4392-bf49-14cb697d237f
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721804.0
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2019-05-17 00:00:00 UTC
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Why Deere, UP Fintech Holding, and Baidu Slumped Today
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DE
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https://www.nasdaq.com/articles/why-deere-fintech-holding-and-baidu-slumped-today-2019-05-17
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nan
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nan
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Friday wasn't a great day on Wall Street, and investors had to put up with modest losses across major indexes to finish a turbulent week on a down note. Trade tensions remain front and center on market participants' minds, and even the idea that the U.S. economy remains strong hasn't been enough to reassure nervous investors about the risk level of their portfolios. Negative news from several well-known companies also weighed on sentiment. Deere (NYSE: DE), UP Fintech Holding (NASDAQ: TIGR), and Baidu (NASDAQ: BIDU) were among the worst performers. Here's why they did so poorly.
Deere in the headlights
Shares of farm equipment specialist Deere dropped nearly 8% following the release of the company's fiscal second-quarter financial results. Deere said that it managed to eke out a 5% gain in revenue overall, and after adjusting for tax reform-related impacts last year, net income was slightly higher over the period. However, the company cited "persistent uncertainty in agricultural markets" that could hold it back from growth in the near future, especially given poor weather conditions in key growing areas. Inventory management should help Deere cushion the blow, but investors are still nervous that subpar industry conditions could hurt the company's results not just over the next year but also further into the future.
Image source: Deere.
UP Fintech goes down
UP Fintech Holding's stock dropped 17% after the China-focused online brokerage firm released unaudited financial results for the first quarter. UP Fintech said that revenue climbed 20% from year-ago levels, but adjusted net losses widened over the period. The newly public financial company was pleased with how it's doing, with CEO Tianhua Wu saying that UP Fintech "look[s] forward to leveraging our increased brand recognition and are committed to keep investing in technology and talent to create a comprehensive ecosystem of financial services." Yet investors don't seem entirely comfortable with UP Fintech's prospects even in a red-hot Chinese stock market, and after opening strongly at its IPO in March, the stock has plunged in short order.
Baidu posts a loss
Finally, shares of Baidu plunged 16.5%. The Chinese online search giant reported its first loss since the mid-2000s, failing to turn 15% revenue growth into better bottom-line results. Baidu said that the environment for online marketing has become extremely difficult, and that explains why growth in revenue from that source has fallen from low to mid-20 percentages early last year to just 3% during the first quarter of 2019. Even as top-line growth has slowed, Baidu has remained extravagant in spending on potential investments to expand its scope. Whether that'll pay off in the long run remains to be seen, but shareholders don't like the impact it's having on Baidu's current results.
Offer from The Motley Fool: The 10 best stocks to buy now
Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. In fact, the newsletter they run, Motley Fool Stock Advisor, has quadrupled the S&P 500!*
Tom and David just revealed their ten top stock picks for investors to buy right now.
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*Stock Advisor returns as of Jan. 31, 2019.
Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Baidu. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Friday wasn't a great day on Wall Street, and investors had to put up with modest losses across major indexes to finish a turbulent week on a down note. Trade tensions remain front and center on market participants' minds, and even the idea that the U.S. economy remains strong hasn't been enough to reassure nervous investors about the risk level of their portfolios. Deere (NYSE: DE), UP Fintech Holding (NASDAQ: TIGR), and Baidu (NASDAQ: BIDU) were among the worst performers.
|
Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. Friday wasn't a great day on Wall Street, and investors had to put up with modest losses across major indexes to finish a turbulent week on a down note. Trade tensions remain front and center on market participants' minds, and even the idea that the U.S. economy remains strong hasn't been enough to reassure nervous investors about the risk level of their portfolios.
|
Yet investors don't seem entirely comfortable with UP Fintech's prospects even in a red-hot Chinese stock market, and after opening strongly at its IPO in March, the stock has plunged in short order. Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. Friday wasn't a great day on Wall Street, and investors had to put up with modest losses across major indexes to finish a turbulent week on a down note.
|
Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. Friday wasn't a great day on Wall Street, and investors had to put up with modest losses across major indexes to finish a turbulent week on a down note. Trade tensions remain front and center on market participants' minds, and even the idea that the U.S. economy remains strong hasn't been enough to reassure nervous investors about the risk level of their portfolios.
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e11b8dc2-1c35-4673-a648-e08e3ce60223
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721805.0
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2019-05-17 00:00:00 UTC
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Consumer Sector Update for 05/17/2019: SFLY,WTRH,UA,UAA,DE
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DE
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https://www.nasdaq.com/articles/consumer-sector-update-for-05-17-2019%3A-sflywtrhuauaade-2019-05-17
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nan
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nan
|
Top Consumer Stocks
WMT -0.55%
MCD -0.29%
DIS -0.10%
CVS +1.16%
KO -0.61%
Consumer stocks were trading lower this afternoon, returning slim gains from earlier in the session. At last look, the shares of consumer staples companies in the S&P 500 were falling about 0.2% while shares of consumer discretionary firms in the S&P 500 were sinking more than 0.6%.
Among consumer stocks moving on news:
(+) Shutterfly (SFLY) was higher Friday, rising as much as 6% in recent trading after StreetInsider, citing sources, said the personalized gifts company was close to accepting a definitive acquisition offer after a string of near-misses. The prospective offer values the company in a range of $55 to $57.50 per share, or between $1.88 billion to $1.97 billion, based on its 34.2 million outstanding shares.
In other sector news:
(+) Under Armour (UA,UAA) was up 8% after JPMorgan raised its investment recommendation on the athletic wear company to overweight from neutral and also increased its price target for the company's shares by $6 to $29 apiece.
(-) Waitr Holdings (WTRH) was 5% lower in recent trade. The online food-delivery service Friday priced a $50 million public offering of 6.76 million shares of its common stock at $7.40 each, representing a 5.2% discount to Thursday's closing price.
(-) Deere & Company (DE) declined over 7% on Friday after the lawn and farm equipment company lowered its FY19 sales forecast and also reported Q1 net income trailing Wall Street expectations.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Among consumer stocks moving on news: (+) Shutterfly (SFLY) was higher Friday, rising as much as 6% in recent trading after StreetInsider, citing sources, said the personalized gifts company was close to accepting a definitive acquisition offer after a string of near-misses. In other sector news: (+) Under Armour (UA,UAA) was up 8% after JPMorgan raised its investment recommendation on the athletic wear company to overweight from neutral and also increased its price target for the company's shares by $6 to $29 apiece. (-) Waitr Holdings (WTRH) was 5% lower in recent trade.
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(-) Waitr Holdings (WTRH) was 5% lower in recent trade. The online food-delivery service Friday priced a $50 million public offering of 6.76 million shares of its common stock at $7.40 each, representing a 5.2% discount to Thursday's closing price. Among consumer stocks moving on news: (+) Shutterfly (SFLY) was higher Friday, rising as much as 6% in recent trading after StreetInsider, citing sources, said the personalized gifts company was close to accepting a definitive acquisition offer after a string of near-misses.
|
Among consumer stocks moving on news: (+) Shutterfly (SFLY) was higher Friday, rising as much as 6% in recent trading after StreetInsider, citing sources, said the personalized gifts company was close to accepting a definitive acquisition offer after a string of near-misses. The online food-delivery service Friday priced a $50 million public offering of 6.76 million shares of its common stock at $7.40 each, representing a 5.2% discount to Thursday's closing price. In other sector news: (+) Under Armour (UA,UAA) was up 8% after JPMorgan raised its investment recommendation on the athletic wear company to overweight from neutral and also increased its price target for the company's shares by $6 to $29 apiece.
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(-) Waitr Holdings (WTRH) was 5% lower in recent trade. Among consumer stocks moving on news: (+) Shutterfly (SFLY) was higher Friday, rising as much as 6% in recent trading after StreetInsider, citing sources, said the personalized gifts company was close to accepting a definitive acquisition offer after a string of near-misses. In other sector news: (+) Under Armour (UA,UAA) was up 8% after JPMorgan raised its investment recommendation on the athletic wear company to overweight from neutral and also increased its price target for the company's shares by $6 to $29 apiece.
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d9b319b7-d228-40e5-af0f-f635fd7b4d96
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721806.0
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2019-05-17 00:00:00 UTC
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5 Top Stock Trades for Monday: TSLA, BIDU, IQ, DE, MU
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DE
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https://www.nasdaq.com/articles/5-top-stock-trades-monday%3A-tsla-bidu-iq-de-mu-2019-05-17
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nan
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nan
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Stocks did a good job bouncing off their morning lows, but how long can bulls keep that action up? The market would do a whole lot better if investors didn’t have to worry about a tweet from the president sending a ripple through Chinese and U.S. trade negotiations, but that’s the market we have right now. Let’s look at some top stock trades to get started on next week.
Top Stock Trades for Tomorrow #1: Baidu
Baidu (NASDAQ:) has one of the worst-looking charts out there among the names that I follow.
It made a really elongated wedge from 2015 to 2017. I was hoping the bulls would be able to keep the stock above the backside of this prior resistance mark, but so far, no cigar. Maybe they can salvage it next week, but it’s looking pretty awful.
Below all of its major weekly moving averages (and daily moving averages for that matter), as well as any meaningful support level and this one is simply a no-touch for traders. Shares are down more than 15% after .
Until we see some hints of a reversal (maybe near $115 to $120) or until BIDU can reclaim $130 and $140, this one is stuck in no man’s land for the time being.
Top Stock Trades for Tomorrow #2: Tesla
We’ve been sounding the alarm bell on Tesla (NASDAQ:) since long-time range support near $245 to $250 gave way. It’s been stuck in this nasty downtrend and is making new 52-week lows on Friday.
Do bulls make a stand next week, perhaps near $210? Maybe. Or we might continue to see a flush. Wait for the move first, then react. Reclaiming channel support gives investors a level to shoot against while aiming for a retest of channel resistance. See how it trades on Monday and Tuesday.
Top Stock Trades for Tomorrow #3: iQiyi
Down more than 6% and it’s clear that the market doesn’t care about iQiyi’s (NASDAQ:) strong user growth or revenue growth. Profits are missing and that’s worrying investors. It doesn’t help that IQ is a Chinese stock too.
The sign it was in trouble came once shares broke below $23, the gap-from level back in February. For those that needed an even more clear sign, the retest-and-fail earlier this month (purple arrow) showed that IQ’s time was up.
Below all of its major moving averages and with a trend pointed lower, IQ stock doesn’t look good. Maybe it bottoms near $18 to $18.50. If it breaks this mark, there could be a long way down. Keep in mind this stock was below $15 back in December. For anything sustainable to get going on the long side, it needs to get above its 20-day moving average.
Top Stock Trades for Tomorrow #4: Deere
and it’s a tough day for Deere (NYSE:) too. Shares broke below range support at $155, as well as the 50-week moving average near $150. Now near $136, and DE may actually be setting up as a solid risk/reward long.
Shares have only closed below $135 on a weekly basis once since December 2017. Should this level hold next week, it could be a good spot to nibble. There have been a few “shoots” below this mark — some to the upper-$120s, some just into the $134s — but by and large $135 has held. A close below could take DE to $125.
Ideally, we see DE shoot below $135 before reversing higher and closing above this week’s lows. Then we’ll have a more measurable setup.
Top Stock Trades for Tomorrow #5: Micron
Last but not least, here’s a good lesson in Micron (NASDAQ:). Shares are down 3.3% on Friday and have been hammered these past few weeks. Remember at the beginning of the month, we flagged the warning signs here. In hindsight, I should have been even more cautious.
Shares were still OK despite that lower low (orange arrow) but then it notched a lower high as well. Once it broke $40.76 to the downside, that was the last-straw sign to bail. Now bouncing off $36, it’s been an ugly ride. If trapped bulls are lucky, they’ll get a bounce next week that they can unload into.
Otherwise, use this one as a lesson. When the trend bends, it’s no longer your friend.
Bret Kenwell is the manager and author of and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.
The post appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For those that needed an even more clear sign, the retest-and-fail earlier this month (purple arrow) showed that IQ’s time was up. The market would do a whole lot better if investors didn’t have to worry about a tweet from the president sending a ripple through Chinese and U.S. trade negotiations, but that’s the market we have right now. Let’s look at some top stock trades to get started on next week.
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Top Stock Trades for Tomorrow #1: Baidu Baidu (NASDAQ:) has one of the worst-looking charts out there among the names that I follow. Below all of its major weekly moving averages (and daily moving averages for that matter), as well as any meaningful support level and this one is simply a no-touch for traders. The market would do a whole lot better if investors didn’t have to worry about a tweet from the president sending a ripple through Chinese and U.S. trade negotiations, but that’s the market we have right now.
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Below all of its major weekly moving averages (and daily moving averages for that matter), as well as any meaningful support level and this one is simply a no-touch for traders. Top Stock Trades for Tomorrow #3: iQiyi Down more than 6% and it’s clear that the market doesn’t care about iQiyi’s (NASDAQ:) strong user growth or revenue growth. Top Stock Trades for Tomorrow #5: Micron Last but not least, here’s a good lesson in Micron (NASDAQ:).
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The market would do a whole lot better if investors didn’t have to worry about a tweet from the president sending a ripple through Chinese and U.S. trade negotiations, but that’s the market we have right now. Let’s look at some top stock trades to get started on next week. Top Stock Trades for Tomorrow #1: Baidu Baidu (NASDAQ:) has one of the worst-looking charts out there among the names that I follow.
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992d3097-29a9-4c18-bf7a-44013831996b
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721807.0
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2019-05-17 00:00:00 UTC
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Mid-Afternoon Market Update: Cray Jumps Following Acquisition News; Pinterest Shares Plummet
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DE
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https://www.nasdaq.com/articles/mid-afternoon-market-update%3A-cray-jumps-following-acquisition-news-pinterest-shares
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nan
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nan
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Toward the end of trading Friday, the Dow traded up 0.15 percent to 25,900.42 while the NASDAQ fell 0.33 percent to 7,871.75. The S&P also fell, dropping 0.03 percent to 2,875.38.
Leading and Lagging Sectors
Utilities shares rose by 0.4 percent on Friday. Meanwhile, top gainers in the sector included AquaVenture Holdings Limited (NYSE: WAAS), up 5 percent, and Consolidated Water Co. Ltd. (NASDAQ: CWCO), up 3 percent.
In trading on Friday, energy shares fell by 0.7 percent.
Top Headline
Deere & Company (NYSE: DE) reported downbeat earnings for its second quarter and lowered its FY19 guidance
Deere & Company reported net income of $1.135 billion for the quarter, or $3.52 per share, compared with net income of $1.208 billion, or $3.67 per share, for the same period last year. Global net sales and revenues increased 6 percent, to $11.342 billion, for the second quarter. Wall Street analysts expected earnings of $3.61 per share on sales of $10.18 billion.
Deere expects equipment sales are projected to increase by about 5 percent for fiscal 2019 compared with 2018. The company cut 2019 net income guidance from $3.6 billion to $3.3 billion and cut 2019 sales growth guidance from 7 percent to 5 percent.
Equities Trading UP
Cray Inc. (NASDAQ: CRAY) shares shot up 19 percent to $35.46 after Hewlett Packard Enterprise Co (NYSE: HPE) announced plans to acquire Cray in a transaction valued at approximately $1.3 billion.
Shares of Fastly, Inc. (NYSE: FSLY) got a boost, shooting up 51 percent to $24.21. Fastly priced its 11.25 million share IPO at $16 per share.
Luckin Coffee Inc. (NASDAQ: LK) shares were also up, gaining 23 percent to $20.90 after pricing its IPO at $17 per share.
Equities Trading DOWN
Pinterest, Inc. (NYSE: PINS) shares tumbled 11 percent to $27.56 after the company reported wider-than-expected loss in its first quarterly report since its IPOPinterest said it projects full-year revenue of $1.055 billion to $1.08 billion.
Shares of Baidu, Inc. (NASDAQ: BIDU) were down 16 percent to $129.11 after the company reported worse-than-expected Q1 EPS. The company also issued Q2 sales guidance below analyst estimates.
BioPharmX Corporation (NYSE: BPMX) was down, falling 18 percent to $1.03 after the company registered an $8.5 million common stock offering.
Commodities
In commodity news, oil traded down 0.1 percent to $62.78, while gold traded down 0.8 percent to $1,275.70.
Silver traded down 1 percent Friday to $14.395, while copper fell 0.4 percent to $2.7375.
Euro zone
European shares closed lower today. The eurozone’s STOXX 600 fell 0.36 percent, the Spanish Ibex Index dropped 0.26 percent, while Italy’s FTSE MIB Index declined 0.22 percent. Meanwhile, the German DAX declined 0.58 percent, and the French CAC 40 fell 0.18 percent while UK shares dropped 0.07 percent.
Economics
The University of Michigan's consumer sentiment increased to 102.4 in May, versus April’s reading of 97.2. However, economists were projecting a reading of 97.1.
The index of leading economic indicators rose 0.2 percent for April.
The total number of active U.S. oil rigs slipped by 3 to 802 rigs this week, Baker Hughes Inc reported.
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Get insight into trading platforms. Compare the best online stock brokerages.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Top Headline Deere & Company (NYSE: DE) reported downbeat earnings for its second quarter and lowered its FY19 guidance Deere & Company reported net income of $1.135 billion for the quarter, or $3.52 per share, compared with net income of $1.208 billion, or $3.67 per share, for the same period last year. Deere expects equipment sales are projected to increase by about 5 percent for fiscal 2019 compared with 2018. Toward the end of trading Friday, the Dow traded up 0.15 percent to 25,900.42 while the NASDAQ fell 0.33 percent to 7,871.75.
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Top Headline Deere & Company (NYSE: DE) reported downbeat earnings for its second quarter and lowered its FY19 guidance Deere & Company reported net income of $1.135 billion for the quarter, or $3.52 per share, compared with net income of $1.208 billion, or $3.67 per share, for the same period last year. Toward the end of trading Friday, the Dow traded up 0.15 percent to 25,900.42 while the NASDAQ fell 0.33 percent to 7,871.75. Meanwhile, top gainers in the sector included AquaVenture Holdings Limited (NYSE: WAAS), up 5 percent, and Consolidated Water Co. Ltd. (NASDAQ: CWCO), up 3 percent.
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Top Headline Deere & Company (NYSE: DE) reported downbeat earnings for its second quarter and lowered its FY19 guidance Deere & Company reported net income of $1.135 billion for the quarter, or $3.52 per share, compared with net income of $1.208 billion, or $3.67 per share, for the same period last year. Equities Trading DOWN Pinterest, Inc. (NYSE: PINS) shares tumbled 11 percent to $27.56 after the company reported wider-than-expected loss in its first quarterly report since its IPOPinterest said it projects full-year revenue of $1.055 billion to $1.08 billion. Meanwhile, the German DAX declined 0.58 percent, and the French CAC 40 fell 0.18 percent while UK shares dropped 0.07 percent.
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Top Headline Deere & Company (NYSE: DE) reported downbeat earnings for its second quarter and lowered its FY19 guidance Deere & Company reported net income of $1.135 billion for the quarter, or $3.52 per share, compared with net income of $1.208 billion, or $3.67 per share, for the same period last year. Equities Trading DOWN Pinterest, Inc. (NYSE: PINS) shares tumbled 11 percent to $27.56 after the company reported wider-than-expected loss in its first quarterly report since its IPOPinterest said it projects full-year revenue of $1.055 billion to $1.08 billion. Toward the end of trading Friday, the Dow traded up 0.15 percent to 25,900.42 while the NASDAQ fell 0.33 percent to 7,871.75.
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fd28c567-12a8-446c-80ff-3fefe50af34e
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721808.0
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2019-05-17 00:00:00 UTC
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Mid-Morning Market Update: Markets Open Lower; Deere Earnings Miss Views
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DE
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https://www.nasdaq.com/articles/mid-morning-market-update%3A-markets-open-lower-deere-earnings-miss-views-2019-05-17
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nan
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nan
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Following the market opening Friday, the Dow traded down 0.44 percent to 25749.82 while the NASDAQ fell 0.71 percent to 7,841.99. The S&P also fell, dropping 0.60 percent to 2,859.01.
Leading and Lagging Sectors
Utilities shares slipped by just 0.2 percent on Friday. Meanwhile, top gainers in the sector included Ferrellgas Partners, L.P. (NYSE: FGP), up 1 percent, and Consolidated Water Co. Ltd. (NASDAQ: CWCO), up 2 percent.
In trading on Friday, industrial shares fell by 0.9 percent.
Top Headline
Deere & Company (NYSE: DE) reported downbeat earnings for its second quarter and lowered its FY19 guidance
Deere & Company reported net income of $1.135 billion for the quarter, or $3.52 per share, compared with net income of $1.208 billion, or $3.67 per share, for the same period last year. Global net sales and revenues increased 6 percent, to $11.342 billion, for the second quarter. Wall Street analysts expected earnings of $3.61 per share on sales of $10.18 billion.
Deere expects equipment sales are projected to increase by about 5 percent for fiscal 2019 compared with 2018. The company cut 2019 net income guidance from $3.6 billion to $3.3 billion and cut 2019 sales growth guidance from 7 percent to 5 percent.
Equities Trading UP
Cray Inc. (NASDAQ: CRAY) shares shot up 18 percent to $35.30 after Hewlett Packard Enterprise Co (NYSE: HPE) announced plans to acquire Cray in a transaction valued at approximately $1.3 billion.
Shares of Soliton, Inc. (NASDAQ: SOLY) got a boost, shooting up 14 percent to $8.25 after the company issued an update on application for FDA Clearance and addressed recent anonymous article on SeekingAlpha.com.
CAE Inc. (NYSE: CAE) shares were also up, gaining 6 percent to $25.29 as the company reported upbeat Q4 results.
Equities Trading DOWN
NeoPhotonics Corporation (NYSE: NPTN) shares tumbled 18 percent to $3.71 after MKM Partners downgraded the stock from Buy to Neutral and lowered the price target from $9 to $4.5.
Shares of Baidu, Inc. (NASDAQ: BIDU) were down 15 percent to $130.71 after the company reported worse-than-expected Q1 EPS. The company also issued Q2 sales guidance below analyst estimates.
Pinterest, Inc. (NYSE: PINS) was down, falling 10 percent to $27.73 after the company reported wider-than-expected Q1 loss. Pinterest said it projects full-year revenue of $1.055 billion to $1.08 billion.
Commodities In commodity news, oil traded up 0.8 percent to $63.35, while gold traded up 0.1 percent to $1,286.80.
Silver traded down 0.4 percent Friday to $14.485, while copper fell 0.6 percent to $2.733.
Euro zone European shares were lower today. The eurozone’s STOXX 600 fell 0.8 percent, the Spanish Ibex Index dropped 0.7 percent, while Italy’s FTSE MIB Index declined 0.7 percent. Meanwhile, the German DAX declined 1.1 percent, and the French CAC 40 fell 0.7 percent while UK shares dropped 0.5 percent.
Economics
The University of Michigan's consumer sentiment increased to 102.4 in May, versus April’s reading of 97.2. However, economists were projecting a reading of 97.1.
The index of leading economic indicators rose 0.2 percent for April.
New York Federal Reserve Bank President John Williams will speak in New York at 11:15 a.m. ET.
The Baker Hughes North American rig count report for the latest week is schedule for release at 1:00 p.m. ET.
Federal Reserve Board of Governors Vice Chairman Richard Clarida is set to speak in Philadelphia, Pennsylvania at 1:40 p.m. ET.
New York Federal Reserve Bank President John Williams will speak in New York at 2:00 p.m. ET.
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Get insight into trading platforms. Compare the best online stock brokerages.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Top Headline Deere & Company (NYSE: DE) reported downbeat earnings for its second quarter and lowered its FY19 guidance Deere & Company reported net income of $1.135 billion for the quarter, or $3.52 per share, compared with net income of $1.208 billion, or $3.67 per share, for the same period last year. Equities Trading DOWN NeoPhotonics Corporation (NYSE: NPTN) shares tumbled 18 percent to $3.71 after MKM Partners downgraded the stock from Buy to Neutral and lowered the price target from $9 to $4.5. Following the market opening Friday, the Dow traded down 0.44 percent to 25749.82 while the NASDAQ fell 0.71 percent to 7,841.99.
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Top Headline Deere & Company (NYSE: DE) reported downbeat earnings for its second quarter and lowered its FY19 guidance Deere & Company reported net income of $1.135 billion for the quarter, or $3.52 per share, compared with net income of $1.208 billion, or $3.67 per share, for the same period last year. New York Federal Reserve Bank President John Williams will speak in New York at 11:15 a.m. Following the market opening Friday, the Dow traded down 0.44 percent to 25749.82 while the NASDAQ fell 0.71 percent to 7,841.99.
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Top Headline Deere & Company (NYSE: DE) reported downbeat earnings for its second quarter and lowered its FY19 guidance Deere & Company reported net income of $1.135 billion for the quarter, or $3.52 per share, compared with net income of $1.208 billion, or $3.67 per share, for the same period last year. Meanwhile, the German DAX declined 1.1 percent, and the French CAC 40 fell 0.7 percent while UK shares dropped 0.5 percent. Following the market opening Friday, the Dow traded down 0.44 percent to 25749.82 while the NASDAQ fell 0.71 percent to 7,841.99.
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Top Headline Deere & Company (NYSE: DE) reported downbeat earnings for its second quarter and lowered its FY19 guidance Deere & Company reported net income of $1.135 billion for the quarter, or $3.52 per share, compared with net income of $1.208 billion, or $3.67 per share, for the same period last year. Silver traded down 0.4 percent Friday to $14.485, while copper fell 0.6 percent to $2.733. Following the market opening Friday, the Dow traded down 0.44 percent to 25749.82 while the NASDAQ fell 0.71 percent to 7,841.99.
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278c90cc-357b-46cf-aa7b-38ad239dbde9
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721809.0
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2019-05-17 00:00:00 UTC
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S&P 500 Movers: DE, AMAT
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DE
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https://www.nasdaq.com/articles/sp-500-movers%3A-de-amat-2019-05-17
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nan
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nan
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In early trading on Friday, shares of Applied Materials (AMAT) topped the list of the day's best performing components of the S&P 500 index, trading up 5.1%. Year to date, Applied Materials registers a 33.7% gain.
And the worst performing S&P 500 component thus far on the day is Deere & Co. (DE), trading down 4.7%. Deere & Co. is lower by about 6.8% looking at the year to date performance.
Two other components making moves today are AO Smith (AOS), trading down 4.6%, and Under Armour (UA), trading up 4.8% on the day.
VIDEO: S&P 500 Movers: DE, AMAT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Friday, shares of Applied Materials (AMAT) topped the list of the day's best performing components of the S&P 500 index, trading up 5.1%. And the worst performing S&P 500 component thus far on the day is Deere & Co. (DE), trading down 4.7%. Deere & Co. is lower by about 6.8% looking at the year to date performance.
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In early trading on Friday, shares of Applied Materials (AMAT) topped the list of the day's best performing components of the S&P 500 index, trading up 5.1%. And the worst performing S&P 500 component thus far on the day is Deere & Co. (DE), trading down 4.7%. Deere & Co. is lower by about 6.8% looking at the year to date performance.
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In early trading on Friday, shares of Applied Materials (AMAT) topped the list of the day's best performing components of the S&P 500 index, trading up 5.1%. And the worst performing S&P 500 component thus far on the day is Deere & Co. (DE), trading down 4.7%. Two other components making moves today are AO Smith (AOS), trading down 4.6%, and Under Armour (UA), trading up 4.8% on the day.
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And the worst performing S&P 500 component thus far on the day is Deere & Co. (DE), trading down 4.7%. VIDEO: S&P 500 Movers: DE, AMAT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Applied Materials (AMAT) topped the list of the day's best performing components of the S&P 500 index, trading up 5.1%.
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311ed5ea-8cd5-4981-abdc-8b52f46efde0
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721810.0
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2019-05-17 00:00:00 UTC
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Deere & Co. Slashes FY19 Outlook - Quick Facts
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DE
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https://www.nasdaq.com/articles/deere-co.-slashes-fy19-outlook-quick-facts-2019-05-17
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nan
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(RTTNews) - While reporting financial results for the first quarter on Friday, Deere & Co. (DE) slashed its earnings and revenue growth guidance for the full-year 2019.
The company said the lower forecast is partly a result of actions taken by it to prudently manage field inventories, which will cause production levels to be below retail sales in the second half of the year.
For fiscal 2019, the company now projects full-year net income attributable to the company to be $3.6 billion on net sales and revenue growth of 5 percent.
Previously, the company expected full-year net income attributable to the company to be $3.5 billion on net sales and revenue growth of 7 percent. On average, analysts polled by Thomson Reuters expect the company to report earnings of $11.14 per share on net sales and revenue growth of 7.0 percent to $35.68 billion for the year. Analysts' estimates typically exclude special items.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - While reporting financial results for the first quarter on Friday, Deere & Co. (DE) slashed its earnings and revenue growth guidance for the full-year 2019. The company said the lower forecast is partly a result of actions taken by it to prudently manage field inventories, which will cause production levels to be below retail sales in the second half of the year. Analysts' estimates typically exclude special items.
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(RTTNews) - While reporting financial results for the first quarter on Friday, Deere & Co. (DE) slashed its earnings and revenue growth guidance for the full-year 2019. The company said the lower forecast is partly a result of actions taken by it to prudently manage field inventories, which will cause production levels to be below retail sales in the second half of the year. Analysts' estimates typically exclude special items.
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(RTTNews) - While reporting financial results for the first quarter on Friday, Deere & Co. (DE) slashed its earnings and revenue growth guidance for the full-year 2019. The company said the lower forecast is partly a result of actions taken by it to prudently manage field inventories, which will cause production levels to be below retail sales in the second half of the year. Analysts' estimates typically exclude special items.
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The company said the lower forecast is partly a result of actions taken by it to prudently manage field inventories, which will cause production levels to be below retail sales in the second half of the year. Analysts' estimates typically exclude special items. (RTTNews) - While reporting financial results for the first quarter on Friday, Deere & Co. (DE) slashed its earnings and revenue growth guidance for the full-year 2019.
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61b1f00e-0af1-4b36-adfd-92321424ded5
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721811.0
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2019-05-17 00:00:00 UTC
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Deere And Co Q2 adjusted earnings Miss Estimates
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DE
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https://www.nasdaq.com/articles/deere-and-co-q2-adjusted-earnings-miss-estimates-2019-05-17
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nan
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(RTTNews) - Deere And Co (DE) reported earnings for second quarter that dropped from the same period last year.
The company's earnings totaled $1.13 billion, or $3.52 per share. This compares with $1.21 billion, or $3.67 per share, in last year's second quarter.
Excluding items, Deere And Co reported adjusted earnings of $1.14 billion or $3.52 per share for the period.
Analysts had expected the company to earn $3.61 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 5.8% to $11.34 billion from $10.72 billion last year.
Deere And Co earnings at a glance:
-Earnings (Q2): $1.14 Bln. vs. $1.03 Bln. last year. -EPS (Q2): $3.52 vs. $3.14 last year. -Analysts Estimate: $3.61 -Revenue (Q2): $11.34 Bln vs. $10.72 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Deere And Co (DE) reported earnings for second quarter that dropped from the same period last year. Excluding items, Deere And Co reported adjusted earnings of $1.14 billion or $3.52 per share for the period. Analysts' estimates typically exclude special items.
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Excluding items, Deere And Co reported adjusted earnings of $1.14 billion or $3.52 per share for the period. Analysts' estimates typically exclude special items. (RTTNews) - Deere And Co (DE) reported earnings for second quarter that dropped from the same period last year.
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Excluding items, Deere And Co reported adjusted earnings of $1.14 billion or $3.52 per share for the period. (RTTNews) - Deere And Co (DE) reported earnings for second quarter that dropped from the same period last year. Analysts' estimates typically exclude special items.
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(RTTNews) - Deere And Co (DE) reported earnings for second quarter that dropped from the same period last year. Excluding items, Deere And Co reported adjusted earnings of $1.14 billion or $3.52 per share for the period. Analysts' estimates typically exclude special items.
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5a83bfdb-bdd0-42c2-a404-ad39d0d73c49
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721812.0
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2019-05-17 00:00:00 UTC
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Deere & Company Earnings: DE Stock Dives on Q2 Miss
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DE
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https://www.nasdaq.com/articles/deere-company-earnings%3A-de-stock-dives-q2-miss-2019-05-17
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nan
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nan
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Deere & Company earnings for the company’s fiscal second quarter of 2019 have DE stock down on Friday.
Source:
Deere & Company (NYSE:) starts off the earnings report for its fiscal second quarter the year with earnings per share of $3.52. This is an increase over the company’s earnings per share of $3.14 from its fiscal second quarter of 2018. Unfortunately for DE stock, this has it missing Wall Street’s earnings per share estimate of $3.61 for the period.
Net income reported by Deere & Company for its fiscal second quarter of 2019 comes in at $1.14 billion. This is down from the company’s net income of $1.21 billion reported in the same period of the year prior.
Operating income from the Deere & Company earnings report for its fiscal second quarter of the year is $1.54 billion. That’s better than the company’s operating profit of $1.49 billion reported in its fiscal second quarter of the previous year.
The Deere & Company earnings report for its fiscal second quarter of 2019 also includes revenue of . This is up from the company’s revenue of $10.72 billion reported during the same time last year. It also comes in above analysts’ revenue estimate of $10.18 billion for the quarter, but couldn’t keep DE stock from dropping today.
“Although the long-term fundamentals for our businesses remain favorable, softening conditions in the agricultural sector have led Deere to adopt a more cautious financial outlook for the year,” Samuel Allen, Chairman and CEO of Deere & Company, said in a statement.
DE stock was down 6% as of noon Friday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
The post appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Operating income from the Deere & Company earnings report for its fiscal second quarter of the year is $1.54 billion. It also comes in above analysts’ revenue estimate of $10.18 billion for the quarter, but couldn’t keep DE stock from dropping today. “Although the long-term fundamentals for our businesses remain favorable, softening conditions in the agricultural sector have led Deere to adopt a more cautious financial outlook for the year,” Samuel Allen, Chairman and CEO of Deere & Company, said in a statement.
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Deere & Company earnings for the company’s fiscal second quarter of 2019 have DE stock down on Friday. Net income reported by Deere & Company for its fiscal second quarter of 2019 comes in at $1.14 billion. Operating income from the Deere & Company earnings report for its fiscal second quarter of the year is $1.54 billion.
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Deere & Company earnings for the company’s fiscal second quarter of 2019 have DE stock down on Friday. Source: Deere & Company (NYSE:) starts off the earnings report for its fiscal second quarter the year with earnings per share of $3.52. Operating income from the Deere & Company earnings report for its fiscal second quarter of the year is $1.54 billion.
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Deere & Company earnings for the company’s fiscal second quarter of 2019 have DE stock down on Friday. Net income reported by Deere & Company for its fiscal second quarter of 2019 comes in at $1.14 billion. The Deere & Company earnings report for its fiscal second quarter of 2019 also includes revenue of .
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92e72070-aa90-453f-bc41-785270040331
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721813.0
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2019-05-13 00:00:00 UTC
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Weekly Market Summary: Trade Dispute Sparks Return of Volatility
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DE
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https://www.nasdaq.com/articles/weekly-market-summary%3A-trade-dispute-sparks-return-volatility-2019-05-13
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nan
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nan
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By David Peltier
Needless to say, this week got off to a bad start for Bulls, before Monday morning even rolled around.
Selling pressure started over the weekend, when most investors probably werenaEURtmt even thinking about stocks. President Trump fired off a tweet on Sunday, suggesting the U.S. would raise tariffs on $200 billion Chinese goods from 10% to 25% on Friday and consider taxing another $325 billion of items.
A war of words ensued on both sides and the news kicked off a roller coaster ride in the global markets. The U.S. followed through with its threats on Friday and the Chinese have promised retaliatory trade actions.
The volatility can be best summed up with this fact: the Nasdaq Composite is down seven of the past eight sessionsaEUR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A war of words ensued on both sides and the news kicked off a roller coaster ride in the global markets. President Trump fired off a tweet on Sunday, suggesting the U.S. would raise tariffs on $200 billion Chinese goods from 10% to 25% on Friday and consider taxing another $325 billion of items. The U.S. followed through with its threats on Friday and the Chinese have promised retaliatory trade actions.
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President Trump fired off a tweet on Sunday, suggesting the U.S. would raise tariffs on $200 billion Chinese goods from 10% to 25% on Friday and consider taxing another $325 billion of items. The U.S. followed through with its threats on Friday and the Chinese have promised retaliatory trade actions. A war of words ensued on both sides and the news kicked off a roller coaster ride in the global markets.
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President Trump fired off a tweet on Sunday, suggesting the U.S. would raise tariffs on $200 billion Chinese goods from 10% to 25% on Friday and consider taxing another $325 billion of items. A war of words ensued on both sides and the news kicked off a roller coaster ride in the global markets. The U.S. followed through with its threats on Friday and the Chinese have promised retaliatory trade actions.
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President Trump fired off a tweet on Sunday, suggesting the U.S. would raise tariffs on $200 billion Chinese goods from 10% to 25% on Friday and consider taxing another $325 billion of items. A war of words ensued on both sides and the news kicked off a roller coaster ride in the global markets. The U.S. followed through with its threats on Friday and the Chinese have promised retaliatory trade actions.
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18a82839-2ce6-46b1-9ca3-cb80250c5320
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721814.0
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2019-05-07 00:00:00 UTC
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Noteworthy ETF Outflows: IWV, MS, NSC, DE
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DE
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https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-iwv-ms-nsc-de-2019-05-07
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $69.2 million dollar outflow -- that's a 0.7% decrease week over week (from 55,200,000 to 54,800,000). Among the largest underlying components of IWV, in trading today Morgan Stanley (Symbol: MS) is down about 1.5%, Norfolk Southern Corp (Symbol: NSC) is down about 1.3%, and Deere & Co. (Symbol: DE) is lower by about 1.5%. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average:
Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point — that compares with a last trade of $170.78. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point — that compares with a last trade of $170.78. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point — that compares with a last trade of $170.78. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $69.2 million dollar outflow -- that's a 0.7% decrease week over week (from 55,200,000 to 54,800,000).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $69.2 million dollar outflow -- that's a 0.7% decrease week over week (from 55,200,000 to 54,800,000). For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point — that compares with a last trade of $170.78. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $69.2 million dollar outflow -- that's a 0.7% decrease week over week (from 55,200,000 to 54,800,000). For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point — that compares with a last trade of $170.78. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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6342f8a2-07f7-41ba-bbbd-62ce1531e59b
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721815.0
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2019-05-06 00:00:00 UTC
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Noteworthy Monday Option Activity: DE, IQV, TRIP
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DE
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-de-iqv-trip-2019-05-06
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 20,365 contracts has been traded thus far today, a contract volume which is representative of approximately 2.0 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 138.2% of DE's average daily trading volume over the past month, of 1.5 million shares. Especially high volume was seen for the $157.50 strike put option expiring May 17, 2019, with 1,040 contracts trading so far today, representing approximately 104,000 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $157.50 strike highlighted in orange:
IQVIA Holdings Inc (Symbol: IQV) saw options trading volume of 9,658 contracts, representing approximately 965,800 underlying shares or approximately 79.9% of IQV's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $145 strike call option expiring June 21, 2019, with 9,582 contracts trading so far today, representing approximately 958,200 underlying shares of IQV. Below is a chart showing IQV's trailing twelve month trading history, with the $145 strike highlighted in orange:
And Tripadvisor Inc (Symbol: TRIP) options are showing a volume of 9,238 contracts thus far today. That number of contracts represents approximately 923,800 underlying shares, working out to a sizeable 66.9% of TRIP's average daily trading volume over the past month, of 1.4 million shares. Particularly high volume was seen for the $45 strike put option expiring May 10, 2019, with 1,106 contracts trading so far today, representing approximately 110,600 underlying shares of TRIP. Below is a chart showing TRIP's trailing twelve month trading history, with the $45 strike highlighted in orange:
For the various different available expirations for DE options, IQV options, or TRIP options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $157.50 strike put option expiring May 17, 2019, with 1,040 contracts trading so far today, representing approximately 104,000 underlying shares of DE. Especially high volume was seen for the $145 strike call option expiring June 21, 2019, with 9,582 contracts trading so far today, representing approximately 958,200 underlying shares of IQV. Particularly high volume was seen for the $45 strike put option expiring May 10, 2019, with 1,106 contracts trading so far today, representing approximately 110,600 underlying shares of TRIP.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 20,365 contracts has been traded thus far today, a contract volume which is representative of approximately 2.0 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing DE's trailing twelve month trading history, with the $157.50 strike highlighted in orange: IQVIA Holdings Inc (Symbol: IQV) saw options trading volume of 9,658 contracts, representing approximately 965,800 underlying shares or approximately 79.9% of IQV's average daily trading volume over the past month, of 1.2 million shares. That number works out to 138.2% of DE's average daily trading volume over the past month, of 1.5 million shares.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Deere & Co. (Symbol: DE), where a total volume of 20,365 contracts has been traded thus far today, a contract volume which is representative of approximately 2.0 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing DE's trailing twelve month trading history, with the $157.50 strike highlighted in orange: IQVIA Holdings Inc (Symbol: IQV) saw options trading volume of 9,658 contracts, representing approximately 965,800 underlying shares or approximately 79.9% of IQV's average daily trading volume over the past month, of 1.2 million shares. Particularly high volume was seen for the $45 strike put option expiring May 10, 2019, with 1,106 contracts trading so far today, representing approximately 110,600 underlying shares of TRIP.
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Below is a chart showing DE's trailing twelve month trading history, with the $157.50 strike highlighted in orange: IQVIA Holdings Inc (Symbol: IQV) saw options trading volume of 9,658 contracts, representing approximately 965,800 underlying shares or approximately 79.9% of IQV's average daily trading volume over the past month, of 1.2 million shares. Particularly high volume was seen for the $45 strike put option expiring May 10, 2019, with 1,106 contracts trading so far today, representing approximately 110,600 underlying shares of TRIP. Below is a chart showing TRIP's trailing twelve month trading history, with the $45 strike highlighted in orange: For the various different available expirations for DE options, IQV options, or TRIP options, visit StockOptionsChannel.com.
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55689a08-431b-4ba5-8924-7fc28cf33d6a
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721816.0
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2019-04-18 00:00:00 UTC
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Notable Thursday Option Activity: DE, PYPL, MO
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DE
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https://www.nasdaq.com/articles/notable-thursday-option-activity-de-pypl-mo-2019-04-18
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 10,400 contracts have traded so far, representing approximately 1.0 million underlying shares. That amounts to about 73.4% of DE's average daily trading volume over the past month of 1.4 million shares. Particularly high volume was seen for the $175 strike call option expiring May 17, 2019, with 1,042 contracts trading so far today, representing approximately 104,200 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $175 strike highlighted in orange:
PayPal Holdings Inc (Symbol: PYPL) options are showing a volume of 42,892 contracts thus far today. That number of contracts represents approximately 4.3 million underlying shares, working out to a sizeable 69.6% of PYPL's average daily trading volume over the past month, of 6.2 million shares. Especially high volume was seen for the $108 strike put option expiring April 18, 2019, with 3,827 contracts trading so far today, representing approximately 382,700 underlying shares of PYPL. Below is a chart showing PYPL's trailing twelve month trading history, with the $108 strike highlighted in orange:
And Altria Group Inc (Symbol: MO) saw options trading volume of 49,858 contracts, representing approximately 5.0 million underlying shares or approximately 64% of MO's average daily trading volume over the past month, of 7.8 million shares. Particularly high volume was seen for the $54 strike put option expiring April 18, 2019, with 7,363 contracts trading so far today, representing approximately 736,300 underlying shares of MO. Below is a chart showing MO's trailing twelve month trading history, with the $54 strike highlighted in orange:
For the various different available expirations for DE options, PYPL options, or MO options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $175 strike call option expiring May 17, 2019, with 1,042 contracts trading so far today, representing approximately 104,200 underlying shares of DE. Especially high volume was seen for the $108 strike put option expiring April 18, 2019, with 3,827 contracts trading so far today, representing approximately 382,700 underlying shares of PYPL. Particularly high volume was seen for the $54 strike put option expiring April 18, 2019, with 7,363 contracts trading so far today, representing approximately 736,300 underlying shares of MO.
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Below is a chart showing DE's trailing twelve month trading history, with the $175 strike highlighted in orange: PayPal Holdings Inc (Symbol: PYPL) options are showing a volume of 42,892 contracts thus far today. Especially high volume was seen for the $108 strike put option expiring April 18, 2019, with 3,827 contracts trading so far today, representing approximately 382,700 underlying shares of PYPL. Below is a chart showing PYPL's trailing twelve month trading history, with the $108 strike highlighted in orange: And Altria Group Inc (Symbol: MO) saw options trading volume of 49,858 contracts, representing approximately 5.0 million underlying shares or approximately 64% of MO's average daily trading volume over the past month, of 7.8 million shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 10,400 contracts have traded so far, representing approximately 1.0 million underlying shares. Especially high volume was seen for the $108 strike put option expiring April 18, 2019, with 3,827 contracts trading so far today, representing approximately 382,700 underlying shares of PYPL. Below is a chart showing PYPL's trailing twelve month trading history, with the $108 strike highlighted in orange: And Altria Group Inc (Symbol: MO) saw options trading volume of 49,858 contracts, representing approximately 5.0 million underlying shares or approximately 64% of MO's average daily trading volume over the past month, of 7.8 million shares.
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Particularly high volume was seen for the $175 strike call option expiring May 17, 2019, with 1,042 contracts trading so far today, representing approximately 104,200 underlying shares of DE. Especially high volume was seen for the $108 strike put option expiring April 18, 2019, with 3,827 contracts trading so far today, representing approximately 382,700 underlying shares of PYPL. Below is a chart showing PYPL's trailing twelve month trading history, with the $108 strike highlighted in orange: And Altria Group Inc (Symbol: MO) saw options trading volume of 49,858 contracts, representing approximately 5.0 million underlying shares or approximately 64% of MO's average daily trading volume over the past month, of 7.8 million shares.
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23755755-8eef-4c1c-a9fe-7e82bb5944ae
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721817.0
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2019-04-18 00:00:00 UTC
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4 Stocks Surging on China’s Turnaround
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DE
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https://www.nasdaq.com/articles/4-stocks-surging-on-chinas-turnaround-2019-04-18-0
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
U.S. equities are pushing higher on Thursday in part thanks to some very solid manufacturing activity data out of China earlier in the week. Not only did Q1 GDP growth hold at 6.4%, but factory activity picked up nicely after months of stagnation thanks in part to stimulus efforts out of Beijing.
Overall, industrial production increased by 8.5% in March from the year earlier. Retail sales were strong as well.
10 Best Stocks to Buy and Hold Forever
All of this, along with ongoing hints of a looming U.S.-China trade agreement, is bolstering expectations that the multi-year slump in Chinese prospects is about to end. Thus, China-focused U.S stocks, especially in the industrial and heavy equipment areas, are perking up nicely. Here are four stocks to buy that are on the move:
Caterpillar (CAT)
Click to Enlarge
Caterpillar (NYSE: CAT ) shares are pushing up and away from prior resistance at the late February highs to return to levels not seen since early October. This extends away from the 50-day moving average, which has crossed above the 200-day average for the first time since last summer.
The company will next report results on April 24 before the bell. Analysts are looking for earnings of $2.95 per share on revenues of $13.4 billion. When the company last reported on Jan. 28, earnings of $2.55 missed estimates by 44 cents on an 11.2% rise in revenues.
Deere (DE)
Click to Enlarge
Shares of tractor maker Deere (NYSE: DE ) are punching up and out of a four-month consolidation range with a test of the $170-a-share level, a high that was first established back in early 2018. A breakout here would result in an extension to new record highs.
7 Consumer Stocks to Buy and Hold for Years
The company will next report results on May 17 before the bell. Analysts are looking for earnings of $3.57 per share on revenues of $10.2 billion. When the company last reported on Feb. 15, earnings of $1.54 per share missed estimates by 22 cents on a 16.2% rise in revenues.
Terex (TEX)
Click to Enlarge
Shares of Terex (NYSE: TEX ), maker of heavy lifting and material handling equipment, are challenging their 200-day moving average and look set for the first sustained push above that level since a previous rally that peaked in January 2018. Management recently issued strong forward guidance, targeting annual revenue growth of 45%.
The company will next report results on May 27. Analysts are looking for earnings of 61 cents per share on revenues of $1.1 billion. When the company last reported on Feb. 25, earnings of 51 cents per share beat estimates by 4 cents on a 15.9% rise in revenues.
CNH Industrial (CNHI)
Click to Enlarge
Shares of CNH Industrial (NYSE: CNHI ), the Dutch maker of agricultural and construction equipment, look set to break up and out of a three-month consolidation range as CNHI's 50-day moving average is just beginning to cross up and over its 200-day average. This is the first such "golden cross" since 2016, so value buyers have been waiting a while to get back into this name.
7 Reasons the Stock Market Rally Isn't Over Yet
The company will next report results on May 7 before the bell. Analysts are looking for earnings of 15 cents per share on revenues of $6.7 billion. When the company last reported on Feb. 7, earnings of 21 cents per share beat estimates by 6 cents on a 0.3% drop in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.
More From InvestorPlace
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The post 4 Stocks Surging on China's Turnaround appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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10 Best Stocks to Buy and Hold Forever All of this, along with ongoing hints of a looming U.S.-China trade agreement, is bolstering expectations that the multi-year slump in Chinese prospects is about to end. Deere (DE) Click to Enlarge Shares of tractor maker Deere (NYSE: DE ) are punching up and out of a four-month consolidation range with a test of the $170-a-share level, a high that was first established back in early 2018. This is the first such "golden cross" since 2016, so value buyers have been waiting a while to get back into this name.
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10 Best Stocks to Buy and Hold Forever All of this, along with ongoing hints of a looming U.S.-China trade agreement, is bolstering expectations that the multi-year slump in Chinese prospects is about to end. Deere (DE) Click to Enlarge Shares of tractor maker Deere (NYSE: DE ) are punching up and out of a four-month consolidation range with a test of the $170-a-share level, a high that was first established back in early 2018. This is the first such "golden cross" since 2016, so value buyers have been waiting a while to get back into this name.
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More From InvestorPlace 2 Toxic Pot Stocks You Should Avoid 5 Dividend Stocks Perfect for Retirees 7 Reasons the Stock Market Rally Isn't Over Yet 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post 4 Stocks Surging on China's Turnaround appeared first on InvestorPlace . 10 Best Stocks to Buy and Hold Forever All of this, along with ongoing hints of a looming U.S.-China trade agreement, is bolstering expectations that the multi-year slump in Chinese prospects is about to end. Deere (DE) Click to Enlarge Shares of tractor maker Deere (NYSE: DE ) are punching up and out of a four-month consolidation range with a test of the $170-a-share level, a high that was first established back in early 2018.
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10 Best Stocks to Buy and Hold Forever All of this, along with ongoing hints of a looming U.S.-China trade agreement, is bolstering expectations that the multi-year slump in Chinese prospects is about to end. Deere (DE) Click to Enlarge Shares of tractor maker Deere (NYSE: DE ) are punching up and out of a four-month consolidation range with a test of the $170-a-share level, a high that was first established back in early 2018. This is the first such "golden cross" since 2016, so value buyers have been waiting a while to get back into this name.
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67981260-301d-4bee-ab15-ffe159d256c4
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721818.0
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2019-04-18 00:00:00 UTC
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4 Stocks Surging on China’s Turnaround
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DE
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https://www.nasdaq.com/articles/4-stocks-surging-on-chinas-turnaround-2019-04-18
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nan
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nan
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U.S. equities are pushing higher on Thursday in part thanks to some very solid manufacturing activity data out of China earlier in the week. Not only did Q1 GDP growth hold at 6.4%, but factory activity picked up nicely after months of stagnation thanks in part to stimulus efforts out of Beijing.
Overall, industrial production increased by 8.5% in March from the year earlier. Retail sales were strong as well.
All of this, along with ongoing hints of a looming U.S.-China trade agreement, is bolstering expectations that the multi-year slump in Chinese prospects is about to end. Thus, China-focused U.S stocks, especially in the industrial and heavy equipment areas, are perking up nicely. Here are four stocks to buy that are on the move:
Caterpillar (CAT)
Caterpillar (NYSE:) shares are pushing up and away from prior resistance at the late February highs to return to levels not seen since early October. This extends away from the 50-day moving average, which has crossed above the 200-day average for the first time since last summer.
The company will next report results on April 24 before the bell. Analysts are looking for earnings of $2.95 per share on revenues of $13.4 billion. When the company last reported on Jan. 28, earnings of $2.55 missed estimates by 44 cents on an 11.2% rise in revenues.
Deere (DE)
Shares of tractor maker Deere (NYSE:) are punching up and out of a four-month consolidation range with a test of the $170-a-share level, a high that was first established back in early 2018. A breakout here would result in an extension to new record highs.
The company will next report results on May 17 before the bell. Analysts are looking for earnings of $3.57 per share on revenues of $10.2 billion. When the company last reported on Feb. 15, earnings of $1.54 per share missed estimates by 22 cents on a 16.2% rise in revenues.
Terex (TEX)
Shares of Terex (NYSE:), maker of heavy lifting and material handling equipment, are challenging their 200-day moving average and look set for the first sustained push above that level since a previous rally that peaked in January 2018. Management recently issued strong forward guidance, targeting annual revenue growth of 45%.
The company will next report results on May 27. Analysts are looking for earnings of 61 cents per share on revenues of $1.1 billion. When the company last reported on Feb. 25, earnings of 51 cents per share beat estimates by 4 cents on a 15.9% rise in revenues.
CNH Industrial (CNHI)
Shares of CNH Industrial (NYSE:), the Dutch maker of agricultural and construction equipment, look set to break up and out of a three-month consolidation range as CNHI’s 50-day moving average is just beginning to cross up and over its 200-day average. This is the first such “golden cross” since 2016, so value buyers have been waiting a while to get back into this name.
The company will next report results on May 7 before the bell. Analysts are looking for earnings of 15 cents per share on revenues of $6.7 billion. When the company last reported on Feb. 7, earnings of 21 cents per share beat estimates by 6 cents on a 0.3% drop in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.
The post appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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All of this, along with ongoing hints of a looming U.S.-China trade agreement, is bolstering expectations that the multi-year slump in Chinese prospects is about to end. Deere (DE) Shares of tractor maker Deere (NYSE:) are punching up and out of a four-month consolidation range with a test of the $170-a-share level, a high that was first established back in early 2018. This is the first such “golden cross” since 2016, so value buyers have been waiting a while to get back into this name.
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All of this, along with ongoing hints of a looming U.S.-China trade agreement, is bolstering expectations that the multi-year slump in Chinese prospects is about to end. Deere (DE) Shares of tractor maker Deere (NYSE:) are punching up and out of a four-month consolidation range with a test of the $170-a-share level, a high that was first established back in early 2018. This is the first such “golden cross” since 2016, so value buyers have been waiting a while to get back into this name.
|
All of this, along with ongoing hints of a looming U.S.-China trade agreement, is bolstering expectations that the multi-year slump in Chinese prospects is about to end. Deere (DE) Shares of tractor maker Deere (NYSE:) are punching up and out of a four-month consolidation range with a test of the $170-a-share level, a high that was first established back in early 2018. This is the first such “golden cross” since 2016, so value buyers have been waiting a while to get back into this name.
|
All of this, along with ongoing hints of a looming U.S.-China trade agreement, is bolstering expectations that the multi-year slump in Chinese prospects is about to end. Deere (DE) Shares of tractor maker Deere (NYSE:) are punching up and out of a four-month consolidation range with a test of the $170-a-share level, a high that was first established back in early 2018. This is the first such “golden cross” since 2016, so value buyers have been waiting a while to get back into this name.
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dfdec68a-0c40-4eef-99e2-c7a81ab8e8fb
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721819.0
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2019-04-18 00:00:00 UTC
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Notable Thursday Option Activity: DE, PYPL, MO
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DE
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https://www.nasdaq.com/articles/notable-thursday-option-activity-de-pypl-mo-2019-04-18-0
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 10,400 contracts have traded so far, representing approximately 1.0 million underlying shares. That amounts to about 73.4% of DE's average daily trading volume over the past month of 1.4 million shares. Particularly high volume was seen for the $175 strike call option expiring May 17, 2019 , with 1,042 contracts trading so far today, representing approximately 104,200 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $175 strike highlighted in orange:
PayPal Holdings Inc (Symbol: PYPL) options are showing a volume of 42,892 contracts thus far today. That number of contracts represents approximately 4.3 million underlying shares, working out to a sizeable 69.6% of PYPL's average daily trading volume over the past month, of 6.2 million shares. Especially high volume was seen for the $108 strike put option expiring April 18, 2019 , with 3,827 contracts trading so far today, representing approximately 382,700 underlying shares of PYPL. Below is a chart showing PYPL's trailing twelve month trading history, with the $108 strike highlighted in orange:
And Altria Group Inc (Symbol: MO) saw options trading volume of 49,858 contracts, representing approximately 5.0 million underlying shares or approximately 64% of MO's average daily trading volume over the past month, of 7.8 million shares. Particularly high volume was seen for the $54 strike put option expiring April 18, 2019 , with 7,363 contracts trading so far today, representing approximately 736,300 underlying shares of MO. Below is a chart showing MO's trailing twelve month trading history, with the $54 strike highlighted in orange:
For the various different available expirations for DE options , PYPL options , or MO options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $175 strike call option expiring May 17, 2019 , with 1,042 contracts trading so far today, representing approximately 104,200 underlying shares of DE. Especially high volume was seen for the $108 strike put option expiring April 18, 2019 , with 3,827 contracts trading so far today, representing approximately 382,700 underlying shares of PYPL. Particularly high volume was seen for the $54 strike put option expiring April 18, 2019 , with 7,363 contracts trading so far today, representing approximately 736,300 underlying shares of MO.
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Below is a chart showing DE's trailing twelve month trading history, with the $175 strike highlighted in orange: PayPal Holdings Inc (Symbol: PYPL) options are showing a volume of 42,892 contracts thus far today. Especially high volume was seen for the $108 strike put option expiring April 18, 2019 , with 3,827 contracts trading so far today, representing approximately 382,700 underlying shares of PYPL. Below is a chart showing PYPL's trailing twelve month trading history, with the $108 strike highlighted in orange: And Altria Group Inc (Symbol: MO) saw options trading volume of 49,858 contracts, representing approximately 5.0 million underlying shares or approximately 64% of MO's average daily trading volume over the past month, of 7.8 million shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 10,400 contracts have traded so far, representing approximately 1.0 million underlying shares. Especially high volume was seen for the $108 strike put option expiring April 18, 2019 , with 3,827 contracts trading so far today, representing approximately 382,700 underlying shares of PYPL. Below is a chart showing PYPL's trailing twelve month trading history, with the $108 strike highlighted in orange: And Altria Group Inc (Symbol: MO) saw options trading volume of 49,858 contracts, representing approximately 5.0 million underlying shares or approximately 64% of MO's average daily trading volume over the past month, of 7.8 million shares.
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Particularly high volume was seen for the $175 strike call option expiring May 17, 2019 , with 1,042 contracts trading so far today, representing approximately 104,200 underlying shares of DE. That number of contracts represents approximately 4.3 million underlying shares, working out to a sizeable 69.6% of PYPL's average daily trading volume over the past month, of 6.2 million shares. Below is a chart showing PYPL's trailing twelve month trading history, with the $108 strike highlighted in orange: And Altria Group Inc (Symbol: MO) saw options trading volume of 49,858 contracts, representing approximately 5.0 million underlying shares or approximately 64% of MO's average daily trading volume over the past month, of 7.8 million shares.
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ddf3bc77-8fba-4e2f-af34-1551735c5d84
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721820.0
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2019-04-15 00:00:00 UTC
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May 31st Options Now Available For Deere (DE)
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DE
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https://www.nasdaq.com/articles/may-31st-options-now-available-deere-de-2019-04-15
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nan
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nan
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Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the May 31st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new May 31st contracts and identified the following put contract of particular interest.
The put contract at the $135.00 strike price has a current bid of 31 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $135.00, but will also collect the premium, putting the cost basis of the shares at $134.69 (before broker commissions). To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $161.81/share today.
Because the $135.00 strike represents an approximate 17% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 96%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 0.23% return on the cash commitment, or 1.82% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $135.00 strike is located relative to that history:
The implied volatility in the put contract example above is 41%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $161.81) to be 29%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Puts of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $161.81) to be 29%. Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the May 31st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new May 31st contracts and identified the following put contract of particular interest.
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To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $161.81/share today. Below is a chart showing the trailing twelve month trading history for Deere & Co., and highlighting in green where the $135.00 strike is located relative to that history: The implied volatility in the put contract example above is 41%. Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the May 31st expiration.
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At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new May 31st contracts and identified the following put contract of particular interest. Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the May 31st expiration. To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $161.81/share today.
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At Stock Options Channel, our YieldBoost formula has looked up and down the DE options chain for the new May 31st contracts and identified the following put contract of particular interest. Investors in Deere & Co. (Symbol: DE) saw new options become available today, for the May 31st expiration. To an investor already interested in purchasing shares of DE, that could represent an attractive alternative to paying $161.81/share today.
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e6a56e78-0db3-42e6-b817-561127abede1
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721821.0
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2019-04-10 00:00:00 UTC
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Noteworthy Wednesday Option Activity: DE, DTE, UAL
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DE
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity-de-dte-ual-2019-04-10
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 8,846 contracts have traded so far, representing approximately 884,600 underlying shares. That amounts to about 57.5% of DE's average daily trading volume over the past month of 1.5 million shares. Especially high volume was seen for the $160 strike put option expiring May 17, 2019, with 1,053 contracts trading so far today, representing approximately 105,300 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $160 strike highlighted in orange:
DTE Energy Co (Symbol: DTE) saw options trading volume of 4,507 contracts, representing approximately 450,700 underlying shares or approximately 43% of DTE's average daily trading volume over the past month, of 1.0 million shares. Particularly high volume was seen for the $125 strike call option expiring May 17, 2019, with 1,900 contracts trading so far today, representing approximately 190,000 underlying shares of DTE. Below is a chart showing DTE's trailing twelve month trading history, with the $125 strike highlighted in orange:
And United Continental Holdings Inc (Symbol: UAL) saw options trading volume of 11,990 contracts, representing approximately 1.2 million underlying shares or approximately 40.8% of UAL's average daily trading volume over the past month, of 2.9 million shares. Particularly high volume was seen for the $83 strike call option expiring April 12, 2019, with 4,388 contracts trading so far today, representing approximately 438,800 underlying shares of UAL. Below is a chart showing UAL's trailing twelve month trading history, with the $83 strike highlighted in orange:
For the various different available expirations for DE options, DTE options, or UAL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $160 strike put option expiring May 17, 2019, with 1,053 contracts trading so far today, representing approximately 105,300 underlying shares of DE. Particularly high volume was seen for the $125 strike call option expiring May 17, 2019, with 1,900 contracts trading so far today, representing approximately 190,000 underlying shares of DTE. Particularly high volume was seen for the $83 strike call option expiring April 12, 2019, with 4,388 contracts trading so far today, representing approximately 438,800 underlying shares of UAL.
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Below is a chart showing DE's trailing twelve month trading history, with the $160 strike highlighted in orange: DTE Energy Co (Symbol: DTE) saw options trading volume of 4,507 contracts, representing approximately 450,700 underlying shares or approximately 43% of DTE's average daily trading volume over the past month, of 1.0 million shares. Below is a chart showing DTE's trailing twelve month trading history, with the $125 strike highlighted in orange: And United Continental Holdings Inc (Symbol: UAL) saw options trading volume of 11,990 contracts, representing approximately 1.2 million underlying shares or approximately 40.8% of UAL's average daily trading volume over the past month, of 2.9 million shares. Below is a chart showing UAL's trailing twelve month trading history, with the $83 strike highlighted in orange: For the various different available expirations for DE options, DTE options, or UAL options, visit StockOptionsChannel.com.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 8,846 contracts have traded so far, representing approximately 884,600 underlying shares. Below is a chart showing DE's trailing twelve month trading history, with the $160 strike highlighted in orange: DTE Energy Co (Symbol: DTE) saw options trading volume of 4,507 contracts, representing approximately 450,700 underlying shares or approximately 43% of DTE's average daily trading volume over the past month, of 1.0 million shares. Below is a chart showing DTE's trailing twelve month trading history, with the $125 strike highlighted in orange: And United Continental Holdings Inc (Symbol: UAL) saw options trading volume of 11,990 contracts, representing approximately 1.2 million underlying shares or approximately 40.8% of UAL's average daily trading volume over the past month, of 2.9 million shares.
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Especially high volume was seen for the $160 strike put option expiring May 17, 2019, with 1,053 contracts trading so far today, representing approximately 105,300 underlying shares of DE. Particularly high volume was seen for the $125 strike call option expiring May 17, 2019, with 1,900 contracts trading so far today, representing approximately 190,000 underlying shares of DTE. Below is a chart showing UAL's trailing twelve month trading history, with the $83 strike highlighted in orange: For the various different available expirations for DE options, DTE options, or UAL options, visit StockOptionsChannel.com.
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70da77cf-dd9a-4958-bd31-e3cbfbe4d20d
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721822.0
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2019-04-10 00:00:00 UTC
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Delta Air Lines Inc (DAL) Q1 2019 Earnings Call Transcript
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DE
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https://www.nasdaq.com/articles/delta-air-lines-inc-dal-q1-2019-earnings-call-transcript-2019-04-10-0
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nan
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nan
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Delta Air Lines Inc (DE) (NYSE: DAL)
Q1 2019 Earnings Call
April 10, 2019 , 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, everyone, and welcome to the Delta Air Lines March Quarter Financial Results Conference Call. My name is Jake, and I will be your coordinator. At this time, all participants are in a listen-only mode until we conduct a question-and-answer session following the presentation. As a reminder, today's call is being recorded.
I would now like to turn the conference over to Jill Greer, Vice President of Investor Relations. Please go ahead.
Jill Greer -- Vice President, Investor Relations
Thanks, Jake. Good morning, everyone, and welcome to our March quarter earnings call .
Joining us from Atlanta today are our CEO, Ed Bastian; our President, Glen Hauenstein; and our CFO, Paul Jacobson. Our entire leadership team is here in the room for the Q&A session. Ed will open the call and give an overview of Delta's financial performance, Glen will then address the revenue environment, and Paul will conclude with a review of our cost performance and cash flows. To get in as many questions as possible during the Q&A, please limit yourself to one question and a brief follow-up.
Today's discussion contains forward-looking statements that represent our beliefs or expectations about future events. All forward-looking statements involve risks and uncertainties that could cause the actual results to differ materially from the forward-looking statements. Some of the factors that may cause such differences are described in Delta's SEC filings.
We'll also discuss non-GAAP financial measures. All results exclude special items, unless otherwise noted. And you can find a reconciliation of our non-GAAP measures on the Investor Relations page at ir.delta.com.
And with that, here's Ed.
Ed Bastian -- Chief Executive Officer
Thanks, Jill. Good morning, everyone. Thanks for joining us today.
Earlier today, Delta reported an $832 million pre-tax profit or $0.96 per share. The core business performed well and we saw a nice upside from our contract renewal with American Express. We grew our earnings per share by 28%, expanded our operating margin by 150 basis points and delivered an after-tax return on invested capital of 14.5% over the last 12 months. This performance demonstrates how we're translating our unique brand, unmatched competitive advantages, and pipeline of initiatives to drive earnings growth, margin expansion and solid returns for our owners. This also underscores our confidence that we have in our future, which is one of the reasons why we accelerated our share repurchases, returning $1.6 billion to our shareholders this quarter.
We achieved 7.5% top line growth as demand for our product remained strong. Our ancillary businesses delivered double-digit growth, and we extended our leadership in delivering great value for our customers. This starts with industry leading reliability as the world's best run airline. We delivered the best March quarter completion factor in our history at 99.06%, despite a very difficult winter weather. Reliability and our culture of service underpin the strength of our brand and allow us to build lasting customer relationships.
Domestic net promoter score has averaged 50% this year, up 7 points versus last year. This is the reason we sustain the best revenue premium in the industry, and it's not just our customers who noticed. Earlier this week, Delta top the Airline Quality Rating and was the only airline to improve in all categories.
Just as important, we continue to execute on cost discipline. Non-fuel unit cost declined slightly marking the third quarter in a row of cost performance below inflation and given us good line of sight to achieving our full-year non-fuel unit cost expectations of 1%. The combination of revenue momentum and cost discipline drove a 1 point improvement in our pre-tax margin, a successful step in our path to improve margin performance for the full year. And our earnings-per-share growth of 28% in the March quarter should be in the top 10% of companies in the S&P 500.
At the heart of this performance of the Delta people, their hard work and focus on the customer is what sets Delta apart. And I want to thank them and say congratulations for starting the year with $220 million toward next year's profit sharing.
During the quarter, there were exciting developments in loyalty, our maintenance, repair and overhaul business and fleet that ensure we build on our earnings momentum, strengthened our strategic advantages and further diversify our revenue streams. 55% of our revenue now comes from premium products and non-ticket sources from less than 40% in 2011.
The growing revenue streams from loyalty and our MRO are major component of the $3 billion to $4 billion in free cash flow that we expect to generate this year. Our long-term agreements give us better visibility and even more confidence in the sustainability of this level of cash generation. Importantly, they are decoupled from air fares and provide stability in any economic environment.
Last week, we were pleased to announce a contract renewal with American Express, extending our agreement through 2029. Delta and American Express are two great consumer brands and our shared passion for service and innovation is that the foundation of our long-term partnership. Our American Express partnership is our most important commercial relationship, and I appreciate the confidence that Steve Squeri and the rest of the AmEx team places in Delta.
While our AmEx contract wasn't set to expire for several years, the early renewal accelerates momentum by providing certainty in a platform for mutual growth and investment. We expect the new agreement to enable substantial growth in the Delta SkyMiles credit card portfolio, setting the stage to create not just the industry's most valuable co-brand program, but one of the most valuable consumer co-brands on the globe.
Delta's benefit is expected to grow to $7 billion by 2023, up from $3.4 billion last year, and just $1 billion at the start of this decade. This growth trajectory demonstrates the strength of the Delta brand, and the growing attractiveness of our value proposition to our customers.
As the largest MRO in North America, we also expect to generate double-digit growth, reaching more than $800 million in revenues this year, and we are growing this business by developing new capabilities and securing long-term partnerships.
During the quarter, we completed construction on the world's largest engine test cell. The test cell opens the door to new larger engine testing capabilities, including those in our agreements with Rolls-Royce and with Pratt & Whitney. As we continue to invest in and grow our maintenance business, we expect the MRO top line to reach $2 billion over the next five years.
And finally, we continue to transform our fleet. While we have made substantial enhancements to our fleet over the last number of years, we expect substantial efficiency benefits are still ahead for us, supporting revenue growth and contributing to Delta's sustained margin advantage. With more than 80 new deliveries this year, 2019 will be an important year for this initiative.
We had a milestone this quarter with the first flights on our state-of-the-art Airbus 220. This innovative aircraft sets a new standard for the domestic narrow-body product. Our customers love it, and we're finding them booking specifically to be on the Airbus 220. We have 90 deliveries of this product alone scheduled over the next several years.
So, 2019 is off to a real solid start. The core business performed well during the quarter, which combined with the upside from the American Express renewal gives us increased confidence in our full-year plan of strong top line growth, margin expansion and double-digi t earnings growth. The business has momentum and there are significant opportunities ahead of us.
We have a strong foundation with our strategic advantages, which are our culture, our leading operational reliability in unrivaled network, our loyalty program and relationship with American Express, and an investment grade balance sheet. These advantages combined with a great brand powered by the very best professionals in the business, provide the engine to drive long-term value for our owners.
Before I turn the call over to Glen and Paul, I'd also like to take a minute to introduce Tim Mapes, who will become our Chief Marketing and Communications Officer starting next month. Tim has more than 25 years of experience with Delta and has been a leading force behind the Delta brand. Tim is assuming this role, because our good friend Ned Walker is heading off to a well-earned retirement. Ned you leave behind an incredible legacy of leadership and service to Delta and the industry, and on behalf of the entire Delta family, thank you.
And now I will turn the call over to Glen to discuss the revenue environment.
Glen Hauenstein -- President
Thanks, Ed, and good morning, everyone. I'd like to start by thanking the Delta team. The unmatched service they provided is the foundation for our increasing customer satisfaction. This enabled us to generate record revenues of $10.4 billion in the March quarter, up 7.5% over last year. We made good progress on our long-term priorities to drive top line and earnings growth by leveraging our network, premium offerings, our co-brand agreement with American Express and our ancillary businesses.
Starting with our top line, corporate revenue remained healthy, increasing 8% for the quarter. In our most recent corporate travel survey, 90% of travel managers expect to maintain or increase their travel spend in the second quarter. This is a record for our June quarter survey. During the first quarter, 55% of our revenues came from premium products and non-ticket sources.
Premium product revenues were up 8% to more than $3 billion in the March quarter, on a 4% increase in premium capacity. Looking forward, premium revenue growth should accelerate through the year as we introduce more aircraft with the full suite of products and improve our ability to sell all of our premium products on delta.com as well as in external channels.
Cargo revenues declined 5% in the quarter, similar to what you have heard from freight companies, we are seeing challenges from softer volumes and currency headwinds. Our MRO business is performing well with revenues up nearly 40% on new customer volume and heavier work scopes from existing customers. The growth rate will moderate in the June quarter, but we'll still be up double digits over prior year.
Total loyalty revenues grew $1.2 billion, up 21% with a little more than $100 million of the improvement driven by the new contract with American Express. Demand for SkyMiles as a currency is stronger than ever. Mileage redemptions grew 12% in the March quarter as we provided customers more opportunity to use their miles. Enhancing customer loyalty and trust is at the heart of our business and we are finding innovative ways to reward our customers for their loyalty. Increasingly, customers are using miles for products and services, beyond just award tickets as we expand miles as a form of payment.
During the quarter, we rolled out miles as currency to mobile, offering SkyMiles' members the opportunity to upgrade to a more premium experience through our app. We saw an overwhelmingly positive response with revenue in the March quarter already exceeding our original full-year estimate. On average, there are already 4,000 customers upgrading with Miles every day with more than half of those transactions coming via mobile. This drove nearly 4 points of redemption growth in the quarter.
Our goal is to provide customers the ability to use miles for products and services across the entire spectrum of the delta ecosystem. We plan to deliver significant additional functionality as we move through 2019.
Our close relationship with American Express is a source of true competitive advantage. The co-brand credit partnership provides a unique revenue stream to Delta by extending our engagement to a broader consumer spend, not just travel on Delta. This is reflected in a new quarterly record for acquisitions of SkyMiles, American Express cards. Our partnership with American Express is an increasingly important driver of our business that is growing faster than the core airline. Co-brand card spend continues to outpace the industry with double-digit growth.
In 2019, our total contribution from American Express relationship will be over $4 billion, up from the $3.7 billion we previously expected. Over the next three years, we expect continued solid growth with a more significant step up starting in 2023 that will drive our total contribution to nearly $7 billion, double of what we achieved last year. We expect the revenue benefit to Delta in 2019 will be approximately $500 million, driving about 1 point of unit revenue impact for the year.
Turning to specifics on unit revenues, unit revenue grew 2.4% on 5% higher capacity. Our record completion factor added 1 point of capacity in the quarter. While this was very good for our customers, our brand and our profitability, the additional capacity weighed on unit revenues by roughly 0.5 point. Even with that pressure, we are above the midpoint of our initial PRASM guidance and the new American Express agreement adds another point of benefit.
Passenger unit revenues grew 0.6%, but were pressured by higher capacity, currency, Easter timing and the government shutdown. Despite these headwinds, we expect to maintain a healthy unit revenue premium to the industry of more than 110%.
Domestic revenues grew 6.9% in the quarter, on a roughly 1% improvement in PRASM. Growth in the business revenue outpaced leisure in the quarter with corporate revenues improving 10% on strong volumes and a 2% improvement in corporate average fares. Leisure trends were choppy, but improved as the quarter progressed.
Atlantic unit revenues fell 2.6% with a 2 point headwind from currency and the Easter shift. We saw pressure on Europe with point of sale leisure demand which weighed on main cabin performance. Corporate and premium revenues were both up over prior year.
In the Pacific, unit revenues declined 2% as strong demand was not enough to offset a 9% increase in stage and a 1 point currency headwind. Korea posted the best performance with a 2% improvement in unit revenues as our joint venture synergies continue to ramp with Korea.
China revenues grew by more than 25%, on a 30% higher capacity, moderately pressuring unit revenue growth. Our capacity growth to China will decelerate in the second half of the year as we annualize the additional flights added to the market during 2018.
In Latin, revenues grew 2.4%, the second consecutive quarter of positive unit revenue growth driven by improving demand and yield trends in Mexico and the Caribbean.
Looking forward, June quarter total revenue is expected to increase 6% to 8% including 1 point of benefit from the agreement with American Express . We expect unit revenue growth of 1.5% to 3.5%, on 4% to 4.5% higher capacity. In domestic, corporate demand is strong. Leisure continues to strengthen as we approach the second quarter peak demand. We expect Atlantic to return to unit revenue growth as demand shifts to U.S. point of origin in the summer season and corporate trends remain strong.
In the Pacific, currency capacity growth in stage will continue to pressure unit revenues in the June quarter, but we see profitability continuing to improve as we execute on our long-term vision for Asia. Our fleet is becoming more efficient. Our product is improving. We have the right partners and with these building blocks in place, we have returned to growth for the first time in seven years. Performance is on track or exceeding our expectations.
Latin is expected to remain the best performing entity. As strength continues in Mexico, the Caribbean, and Brazil improves. We expect Brazil to show year-over-year RASM improvement in the June quarter for the first time in a year. Sequentially, in the June quarter, we expect a 1 point improvement in passenger revenue per ASM with sequential improvement in all entities.
On a travel basis, however, this improvement will be somewhat tampered by other revenue pressure due to lower growth rates in ancillary businesses. Importantly, our passenger unit trajectory in the back half of the year, the rate of domestic capacity -- I'm sorry, excuse me, importantly for our passenger unit revenue trajectory in the back half of the year, the rate of domestic capacity growth is expected to decelerate by approximately 2 points. This gives us increased confidence on our full year unit revenue trajectory.
As we think about our network opportunities, we have leveraged our first-mover advantage to build our number one or number two positions in our coastal gateways. Later this year, we begin refocusing our growth into our higher margin core hubs through more efficient larger gauge aircraft. We continue to increase our scale, while maintaining our revenue premium and improving our margins.
With about a point of incremental capacity driven by a record operating performance and increased gauge and stage length, we now see our full year 2019 capacity outlook to be in the 3% to 4% range. However, we are always mindful of our operating environment, and we'll take the necessary actions we see -- we need to do, if we see sustained higher fuel prices or economic uncertainty impacting our margin expansion. The slightly higher capacity combined with $500 million in additional revenue from benefit from American Express renewal support total revenue growth of 5% to 7% in 2019, up from the 4% to 6% initial guidance given at Investor Day.
In closing , the strength of the March quarter results and the contract renewal with American Express further reinforce the confidence and conviction we have in both our near-term and long-term strategy.
With that, I'll turn it over to my good friend, Paul.
Paul Jacobson -- Executive Vice President & Chief Financial Officer
Thank you, Glen, and good morning, everyone, and thank you all for joining us. At our Investor Day, we reiterated our commitment to consistently delivering superior financial results. For us this is about creating value through top line growth, margin expansion, and free cash flow generation through prudent capital allocation.
Our March quarter results provided a solid start to the year across each of these priorities and give us increased confidence in our full year outlook. This is the first quarter we have expanded margins on both an operating and pre-tax basis in nearly two years. Our March quarter operating margin of 10% is 1.5 point higher than last year and flat to 2017, despite market fuel prices that are approximately 20% higher this year.
For the March quarter, our non-fuel unit cost declined two-tenths of a point, marking another quarter of strong cost performance. This was better than our initial guidance due to record operations that resulted in about 1 point of additional capacity, some shifts in expense timing to the second and third quarter and continued good cost control momentum throughout the organization carrying forward from the second half of last year. Fuel prices are trending higher, so maintaining a disciplined cost trajectory is the top priority for us as we continue to drive to full year margin expansion. I want to thank the entire Delta team for their continued commitments in this effort.
For the June quarter, we expect non-fuel unit cost growth of 1% to 2%. It is important to note that with the efficiency gains we've made through our fleet transformation, we expect to accelerate the retirement of our MD-90 fleet. Our June quarter cost guidance includes about 1 point -- about 0.5 point of impact for this decision.
Our results combined with our ongoing fleet transformation and work through One Delta keep us on track to achieve our target of 1% non-fuel unit cost growth in 2019. This year is important for us in our fleet transformation journey. We are optimizing how we deploy our existing fleet through One Delta, continuing to retire older aircraft with nearly 40 MD-88s exiting the fleet this year and introducing next generation engine technology with two new aircraft types. These new aircraft generate substantial efficiency benefits and enable revenue growth both through higher premium seat mix as well as improved customer satisfaction, supporting our industry leading revenue premium and margin advantage.
In February, we launched the A220. By the end of the year, we will have 28 of these aircraft growing this fleet to 90 aircraft by 2023. A220 deliveries enable retirement of smaller regional aircraft, the least efficient and highest cost aircraft in our fleet. We are also the North American launch customer for the A330-900neo. This aircraft will join our fleet this summer enabling more efficient flying in the Pacific with a best-in-class product that is expected to generate a 5 point to 10 point margin improvement versus the aircraft it is replacing.
New engine technology aircraft also give us the ability to structurally shift our cost curve down, while gaining benefits from higher gauge and a better product. Our order book allows for replacement of 35% of our mainline fleet through 2023, allowing us to continue to optimize the simplification and efficiency benefits to drive further margin improvements.
Total fuel expense increased $87 million in the quarter versus prior year. Refinery profits were pressured due to lower gas crack spreads, driving a loss of $34 million or about $0.04 per gallon in the quarter. For the June quarter, we expect our all-in fuel price to be $2.10 to $2.20 per gallon in line with last year and up modestly from the March quarter. These results include a slight profit at the refinery for the quarter.
Importantly, our refleeting and One Delta initiatives drove a 2.1% improvement in fuel efficiency during the March quarter, double the rate we saw in the same quarter last year, an indicative of the efficiency we expect to generate in 2019, furthering our environmental sustainability goals and lowering our costs.
Non-operating expenses for the quarter were $69 million higher than prior year due to pension pressure and lower equity partner earnings, each of which are expected to repeat in the quarter. Looking to the June quarter, expected top line growth of 6% to 8% combined with 1% to 2% growth in our non-fuel unit costs and a slight moderation in fuel prices over prior year, supports our expectation for continued margin expansion and another quarter of double-digit EPS growth. We expect earnings per share to be in the range of $2.05 to $2.35 up more than 20% versus prior year at the midpoint and well above S&P earnings growth expectations. This equates to a pre-tax margin of 14% to 16% compared to last year's results of 14.1%.
Turning to cash flow and the balance sheet, we generated $2 billion of operating cash flow in the quarter with improvement over prior year on higher profits and timing of our voluntary pension contribution. We reinvested in the business with $1.3 billion in CapEx, resulting in free cash flow of $760 million. The March quarter result, an incremental benefit from AmEx give us increasing confidence in achieving the high end of our full year free cash flow guidance of $3 billion to $4 billion compared to $2.3 billion last year. In fact, we expect to produce nearly that level in the first half of this year alone.
For the full year, our free cash flow conversion is expected to improve to around 80% of net income with tailwinds from strong top line growth included the -- including the added benefit from American Express and an improved cost trajectory. This is up 33% from an average of around 60% each of the last two years.
Our strong cash generation and a healthy balance sheet enable us to consistently return cash back to our owners. With the confidence this management team has in the sustainability of Delta's earnings power, market volatility created an opportunity to accelerate our buyback plans within the year.
We repurchased $1.3 billion in stock at an average price of $50.55, retiring 26 million shares in the quarter, while also paying out $233 million in dividends. Our repurchases were funded by a $1 billion seasonal working capital loan, $300 million of which we have already repaid. The remainder is expected to be repaid by the end of this year. We still expect to return approximately $2.5 billion to shareholders in 2019 through dividends and buybacks and remain staunchly committed to returning 70% of free cash flow to shareholders annually. In the first week of April, we contributed $250 million of our voluntary pension funding for the year, and we expect to contribute the remaining $250 million later this year.
Leveraging our strong balance sheet, we recently refinanced $500 million of scheduled debt maturities. The completion of our $500 million EETC refinances approximately one-third of our 2019 scheduled maturities at a 3.2% blended rate saving us approximately $9 million annually on our interest expense. With debt levels comfortably within our leverage ratio target of 1.5 times to 2.5 times adjusted debt-to-EBITDAR, we will continue to utilize a variety of funding sources to refinance debt maturities or take advantage of market conditions and refinance higher cost debt.
Our after-tax return on invested capital on a trailing 12-month basis is 14.5%. This is up nearly 200 basis points over prior year on improved profitability and tax reform benefits. We are on track to deliver a 15% after-tax ROIC in 2019, consistent with our expectations at Investor Day.
Looking forward, we have solid momentum and are on track to deliver strong top line growth, margin expansion and double-digit EPS growth for the full year. This performance is a validation of our commitment to reinforcing the Delta difference. The combination of our powerful brand and our unmatched competitive advantages continue to deliver industry-leading results and will drive long-term value for our owners.
With that, I'll turn the call back over to Jill to begin the Q&A.
Jill Greer -- Vice President, Investor Relations
Thanks, Paul. Jake, we're ready for questions from the analysts, if you could give them instructions on how to get in the queue.
Questions and Answers:
Operator
(Operator Instructions) We will hear first from Joseph DeNardi with Stifel.
Joseph DeNardi -- Stifel, Nicolaus & Co. -- Analyst
Yes. Good morning. Ed, in 2018, you guys received $3.5 billion in cash from the selling miles and reported about $1.5 billion in marketing fee. You're on track for $2 billion in 2020. If you can get to $7 billion in 2023, you'll be doing $3 billion to $4 billion in marketing fee. How could you possibly not break that out as a separate business unit? I'm not talking about spinning it or selling it, just segmenting it out. What are your thoughts there?
Ed Bastian -- Chief Executive Officer
Well, my thoughts are as a good problem to worry about, Joe. We are -- first of all, we are pleased and thrilled with the new renewal. AmEx is an awesome partner and our two brands line up so well strategically and with our customers and our people. As we grow our loyalty program, you're right, there will be a question of disclosure in terms of providing better insight from an ownership perspective and a governance perspective into the drivers of our profitability into the future and whether that's in a segment or whatever disclosure format, I am not sure what it will take, but it's something that we've been giving greater disclosure to, as you know, and we'll continue to consider that.
Joseph DeNardi -- Stifel, Nicolaus & Co. -- Analyst
Okay, that's helpful. And then Glen, just -- or Ed, if you could just talk around some of the assumptions behind getting to the $7 billion. It seems to imply continued really strong growth in part acquisitions and spend on the cards. So what gives you confidence that you can continue to do that? And then Glen, you mentioned another significant step up in 2023, so I mean can you talk about what the total value of the agreement could reach by the end of it?
Glen Hauenstein -- President
Well, we continue to see it grow significantly beyond 2023. And really one of the great reasons that we have for accelerating the renewal of the contract is that we can continue to invest in new products and services for consumers that we think will make the card relatively more and more attractive and drive continued acquisition, and that was really one of the main reasons to go ahead and do that at this point in time.
So we are excited about the future of that. As I pointed out in the earnings call, we did have another record acquisition in the script. We had another record acquisition quarter in the first quarter, and as we start off the second quarter, acquisitions remained very strong. And I think, if we can continue to provide the kind of value to customers that they want to acquire the card, which we have a great plan for with American Express, we will meet or exceed those expectations by 2023 and beyond.
Joseph DeNardi -- Stifel, Nicolaus & Co. -- Analyst
Thank you.
Operator
(Operator Instructions) We'll now move to a question from Joe Caiado with Credit Suisse.
Joe Caiado -- Credit Suisse -- Analyst
Hey, thanks very much. Good morning. Ed and Paul, you're generating a lot of cash flow this year, that was already the case prior to the renewal of the AmEx agreement. The outlook for cash flow is now even better. Two-part question here. I know you're committed to returning 70% of free cash flow to shareholders, but you've also gone above that level periodically. So I'm curious how you're thinking about prioritizing the deployment of that incremental cash flow that you're getting this year?
And then the second part of question is, Ed, since you talked about the confidence this gives you and the sustainability of your cash flow, I'm curious if you have a target for annual free cash flow conversion going forward?
Paul Jacobson -- Executive Vice President & Chief Financial Officer
Well, good morning, Joe. I'll start with that and Ed can follow up. Obviously, the American Express agreement provides us with increasing confidence about our performance throughout the year, and in part helps to convey that confidence through my comments about coming in at the top end of the free cash flow range for the year. It is still early in the year and we are facing increasing prices and we're cautiously optimistic about that. We have said with the announcement of the first quarter buyback acceleration that we maintain the optionality to give back more. So, consistent return of capital back to shareholders is obviously a big priority for us and we expect to continue that into the future.
Ed Bastian -- Chief Executive Officer
Joe, to add on to Paul's comments, I agree with him. I think it's a great start to the year. We're excited with how the first quarter came, but I think it's still early to be raising full year expectations, whether it's in guidance or for profitability, EPS or cash flow. We do face a lot of volatility in oil prices , and while demand has been solid, I'd like to at least get through the second quarter before reassessing those full year expectation. So from my perspective, I'd say we're cautiously optimistic. We'll be in the top half of the guidance range that we gave you both on EPS as well as on free cash, but we're not ready to raise those ranges or expectations right at this moment.
Joe Caiado -- Credit Suisse -- Analyst
That's fair. I appreciate that. And then a second question, if I may for Glen. I would just love to get your thoughts kind of big picture on the booking curve and what you're seeing. It feels like perhaps we're seeing some more heavy discounting on longer dated bookings, but better close in offsetting, just love your thoughts there? Thanks.
Glen Hauenstein -- President
I don't think that's why we could see it all. As a matter of fact, forward yields for every month out through the second quarter are in positive territory on higher bookings. So we see relatively robust leisure demand as we enter the second quarter.
Joe Caiado -- Credit Suisse -- Analyst
Great. Thank you.
Operator
Our next question will come from Hunter Keay with Wolfe Research.
Hunter Keay -- Wolfe Research -- Analyst
Good morning.
Ed Bastian -- Chief Executive Officer
Good morning.
Hunter Keay -- Wolfe Research -- Analyst
Hey, Ed, putting aside the issues, Boeing current issues with the MAX, how does the potential aftermarket work and your relationship with the engine OEMs factor into how you're thinking about buying the NMA?
Ed Bastian -- Chief Executive Officer
Well, I'd say it's premature to the speculating on the NMA, it's -- Boeing has not even approved the release of it for sale. So, I think, we're little early here. You know, we are -- we consider all components of the aircraft, and the revenues and the opportunities that it brings. As we evaluate a new fleet family, it was an important consideration in making decision on the 321neo which product we went to with the geared turbofan as well as the MRO benefits that provided. It will certainly be in the consideration set as we think about the NMA, but I think, trying to get down to that level of speculation probably is way too early.
Hunter Keay -- Wolfe Research -- Analyst
Okay. And then how does the AmEx agreement factor into how you view the life cycle of the customer? Is there a construct or you're willing to subsidize a few years of price sensitive consumption of fares or even losses or low margins to potentially strategic customers and exchange for like a 25-year to 50-year long-term relationship with increasing spend that that customer builds wealth?
Ed Bastian -- Chief Executive Officer
Well, I -- yeah, that's a question obviously for AmEx as well as for us. We are -- when we think about AmEx and our relationship, we think for the very long-term. We don't think in terms of contract periods and renewal extensions. AmEx -- one of real attractive components to AmEx is the presence it has and the opportunity it creates in some of our high-value segments. So yes, if you're asking do we invest in acquiring high value potential customers early in their life, absolutely. And it's one of the reasons I think our brands aligned so well, because we have similar strategies in terms of how we think about our brands and how we think about consumers.
Hunter Keay -- Wolfe Research -- Analyst
Very good. Thank you.
Operator
And now we'll hear from Duane Pfennigwerth with Evercore ISI.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Hey, thanks, good morning. Just to come back to AmEx for a second. Can you comment on the underlying drivers of that $7 billion contribution by 2023. How much of that is contractual rate? How much of that is customer spend? And how much of that is new customer acquisition, if you would?
Ed Bastian -- Chief Executive Officer
Duane, we are under contract confidentiality obviously with the American Express that you can appreciate. I can tell you, it's all of the above. And as we get further into the new contract, I think some of those -- your questions will start to answer themselves.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Okay. We'll wait for that to be revealed. And then, Glen, you touched on mobile briefly. Can you talk about mobile more broadly? What does it represent as a percentage of your bookings today? How large is that revenue stream, and how quickly is it growing?
Glen Hauenstein -- President
Mobile is by far the fastest growing, and it's about 20% of our direct bookings, 20% to 25% of our direct bookings. And it seems like every week and every month that moves on, mobile becomes a bigger and bigger chunk of total booking. So that's really the place that we see an incredible amount of growth, and that's where consumers are seeming to want to go in order to book delta.com or book directly with Delta. So, very exciting, and we have lots of great new releases coming this year, which we think will continue to enhance the customer experience with more and more utility that you can have in the palm of your hand.
Duane Pfennigwerth -- Evercore ISI -- Analyst
Thank you very much.
Operator
Helane Becker with Cowen. We'll have the next question.
Helane Becker -- Cowen Securities -- Analyst
Thanks very much, operator. Hi, everybody, and thank you very much for the time. Just on the MRO business, you said it was $800 million in revenue this year and you want to grow it to $2 billion over some time frame going forward. Can you just talk about the CapEx that you need to get to that level, or with the new large test cell, is that built out now?
Ed Bastian -- Chief Executive Officer
Well, Helane, the good news in that is a lot of the growth that we need is now contractually provided for with our relationships with Rolls-Royce on the Trent as well as on the Pratt & Whitney in the geared turbofan. As those products come to market, the geared turbofan is still early in its introduction as well as the new -- some of the new Trent products, you will see that the revenue ramp toward the back end of that period at a higher clip than you will see in the front part of that five-year period. This year we're doing well, and looking for double-digit growth top line as well as margin improvement from the MRO, but it really starts to take off part in the pun over the next couple of years.
Helane Becker -- Cowen Securities -- Analyst
Okay, that's really helpful. Thank you. It's OK, I get the puns too. Just -- when you think about -- I want to ask this question, but you're not going to really answer the whole question because you're negotiating -- you started negotiating with your pilots. And when you think about your go-forward CapEx and the growth of the airline, the replacement cycle and so on, how do you manage their expectations in terms of growing the non-ticket revenue or main cabin revenue that 45% of your total revenue with what their demands are for what they expect their future income today?
Ed Bastian -- Chief Executive Officer
Well, you're right, we're not going to talk about our discussions with our pilots, which have just begun and it's going to take quite some time to reach a productive conclusion. When we think about our company, we think about all the constituents that are important to our company, all of our employees, not just our pilots that they'll create the opportunity and the value that we've already created and as well as the future. We think about the investment needs that we have to make in our -- continued in our product and our growth.
We think about the investments we need to make in our customers, investments we need to make in our communities, as well as investments we need to continue to make in our owners. So in that context, I'm certain we'll reach a good and fair conclusion of our pilot negotiations. But it's -- we're not going to do it publicly, and it's -- or premature to even begin to speculate on any construct there.
Helane Becker -- Cowen Securities -- Analyst
Okay. That's totally fair. Thanks for your help. Have a nice day.
Ed Bastian -- Chief Executive Officer
Thank you.
Operator
And our next question will come from David Vernon with Bernstein.
David Vernon -- Bernstein -- Analyst
Hey, good morning, guys. Maybe, Glen or Ed, could you just kind of talk in simple terms like what Delta actually needs to do to get this incremental sort of $3.5 billion of revenue? Is this just a function of pricing on a mileage basis, new card issue? Can you kind of break through the drivers of what actually Delta needs to do to kind of secure this revenue benefit?
Ed Bastian -- Chief Executive Officer
David, it's a good try. I'll give you the same answer I gave last time. We're under confidentiality. We can't give you those specific drivers in terms of -- but it is all the above. Obviously, we're going to be investing alongside AmEx in new cardholder, not just acquisitions but development in terms of spend and portfolio size and range and the opportunities to expand in that regard. Economics of the card obviously have improved itself in terms of coming back to Delta, so I'd say those are couple of the main drivers.
David Vernon -- Bernstein -- Analyst
Yeah, I mean, I guess just trying -- it's hard to sort of handicap (inaudible) to put that number to model without really kind of understanding the drivers of kind of...
Ed Bastian -- Chief Executive Officer
Let me suggest that we have pretty good optimism on getting to the $7 billion in that time frame we gave.
David Vernon -- Bernstein -- Analyst
Okay. All right. And maybe just as a follow up topic on a different subject, Transatlantic, Glen, you mentioned that Europe is looking like it's firming up a little bit as we get into the summer months. There's a lot of speculation that there's going to be some new capacity added into that Transatlantic market. Can you talk a little bit about kind of Delta's experience on the yield curve when other sort of low cost entrants maybe kind of came into that Transatlantic market, and help us think through what some of the puts and takes for Delta could be, if we do hear an announcement that another carrier may be flying to Transatlantic soon?
Glen Hauenstein -- President
Well, as you know, we faced and have faced significant competition from low fare and ultra low fare carriers in the Transatlantic for quite some time. So this is not something new. And we're sitting in a very good position we think with our partnerships in the Transatlantic, and with our core products and services that will continue to improve over the next months and years. So we feel very secure.
And if you look at Transatlantic capacity, there are always new entrants coming and there are always entrants leaving, if you will. So we'll see what the supply and demand balance is, but we've had a very good couple of years in the Transatlantic and we expect that to continue.
David Vernon -- Bernstein -- Analyst
But did you see a material impact as sort of maybe Norwegian came into the market a few years ago or was it (inaudible)?
Glen Hauenstein -- President
As you know, last year was one of the best years we've had in many years in the Transatlantic, and this year is shaping up to be another great year. So, I think, the data points would suggest that that we are in a very good spot.
David Vernon -- Bernstein -- Analyst
All right, I appreciate the added color. Thanks, guys.
Operator
Next question will come from Jamie Baker with JP Morgan.
Jamie Baker -- JP Morgan -- Analyst
Hey, thanks. Good morning, everybody. Glen, sort of an arcane one to start. Could you give us a summary of interline agreements with U.S. and Canadian competitors. I realize it's a small part of the business, but to the extent that MAX cancellations continue, it would help to understand which airlines can send passengers, over to you. Also, if and when somebody does, is the fare you receive what the passenger paid fare or is it something more akin to like a ID75 off your full fare?
Glen Hauenstein -- President
Yeah, I don't think we want to disclose the details of our interline agreements with our partners, but it is not the fare that the customers paid, we will say that, and we do have interline agreements with the two major U.S. carriers that are our competitors, and that's -- two of the three that are experiencing those small cancellations. I think now most of them have taken those out. So they're trying to get proactive and get way ahead of the reaccommodation. So we don't expect a significant number of day of departure reaccommodations from that.
Jamie Baker -- JP Morgan -- Analyst
Okay. And second, probably for Ed or Paul, on AmEx, how far ahead of the industry curve do you think that Delta is with the new terms? Or actually, no, no, I'll scratch that because I don't think you'll answer, let me try it differently. If you were to rank the key contributions to your margin premium, so if you were to rank the contributors to the margin premium and I gave you the categories of loyalty economics, domestic RASM premium, MRO, fleet and CASM. Would those be the top five and what would be descending order of contribution be? Again, those categories, are loyalty, RASM premium, MRO, fleet and CASM, you have 30 seconds.
Ed Bastian -- Chief Executive Officer
It sounds like a 30-minute game show, Jamie. Listen we are -- we were clear in our comments that we -- this contract extension will lead us to our goal of being not just the most valuable card in the industry, but one of the most valuable cards in consumer cards in the world. I don't know that we are number one at this moment as we sit here within our industry, though I certainly expect over the next few years, we should be, number one. Relative ranking, I had to give some thought to how you'd want to, kind of cost you'd like to allocate to all those revenue categories that you gave us.
Jamie Baker -- JP Morgan -- Analyst
Okay. I guess, we'll send you home with the -- you know the home version of the board game then. I appreciate the answers all the same. Thank you, everybody.
Ed Bastian -- Chief Executive Officer
Take care, Jamie.
Jamie Baker -- JP Morgan -- Analyst
Take care.
Operator
Now we'll move to a question from Mike Linenberg with Deutsche Bank.
Mike Linenberg -- Deutsche Bank -- Analyst
Hey, good morning, everyone. Hey, just two quick ones here. Hey, Ed, on the MRO I recall time, it was a few years back, when Delta used to provide, on a segment basis, the profitability of your MRO and I think the margins, operating margins were in the mid teens. Is that consistent with the profitability of that business today?
Ed Bastian -- Chief Executive Officer
Yes, it is.
Mike Linenberg -- Deutsche Bank -- Analyst
Okay, great. And then just my second question, and Ed this is, back to you, just the headlines out about possibility of tariffs on Airbus equipment, you know, would there be a distinction if for Airbus aircraft, maybe narrow-body aircraft coming out of Alabama that are built by American workers? Any thoughts on that? I know it's early.
Ed Bastian -- Chief Executive Officer
I don't know, Mike. Obviously the aircraft that we're going to be taking next year out of mobile, you would think would be -- should be exempt from potential tariff issue, but we'll wait and see.
Mike Linenberg -- Deutsche Bank -- Analyst
All right. Great. Thanks.
Jill Greer -- Vice President, Investor Relations
Jake, we're going to have time for one more question from the analysts.
Operator
And that question will come from Dan McKenzie with Buckingham Research.
Dan McKenzie -- Buckingham Research -- Analyst
Hey, good morning. Thanks, guys. Going back to the use of free cash flow this year, Delta has done strategic investments really well. And without comment to what you may or may not do, I wonder if you can at least comment on whether there are any interesting opportunities that you're currently evaluating?
Ed Bastian -- Chief Executive Officer
Such as?
Dan McKenzie -- Buckingham Research -- Analyst
Strategic investment perhaps in another partner, or at least a bigger investment in an existing partner.
Ed Bastian -- Chief Executive Officer
Dan, as you know we are not going to speculate on future strategic investments on the call. The one that's out there that we have indicated were in discussions with Alitalia, and I've confirmed that several times publicly that we are talking to the rail system of Italy FX (ph) as well as with the Alitalia leadership in the Italian government about potentially making an investment, but it's not the size that I think would warrant us to getting into a discussion of what that means for our use of free cash flow. I think that will be an investment that's somewhat limited. And we'll then -- we certainly haven't made a decision in terms of timing on that.
Dan McKenzie -- Buckingham Research -- Analyst
Understood. Second question is just regarding the move to partly maintain the full year EPS, there is some macro noise around Brexit part being some lower growth worries out of Europe. And I appreciate the positive revenue commentary on the Atlantic. But on the UK piece of this, you know what are you seeing today, and can you just remind us what the UK component is to the overall revenue pie here, just given the JVs?
Glen Hauenstein -- President
Well, UK is about 20% to 25% if you include the Virgin piece, much less for us. And what we're seeing is actually fairly decent summer travel to the UK, both in business and in coach. So we have the second quarter, we are expecting UK unit revenues to be flat to up slightly. And so while we have waited for years for the impact of Brexit on air travel, it has not yet materialized and we'll keep a close eye on it, and if we have to make adjustments, we will. But I think there's so much uncertainty around what it actually is. It's hard for us to action it at this time.
Ed Bastian -- Chief Executive Officer
And to be clear in Glen's comments that 20% to 25% is of a Transatlantic JV, not of Delta. So, it's obviously much smaller part of Delta.
Glen Hauenstein -- President
25% is of the Transatlantic.
Dan McKenzie -- Buckingham Research -- Analyst
Yeah. Understood. Okay, thanks for the time, guys.
Jill Greer -- Vice President, Investor Relations
That's going to wrap up the analyst portion of the call. Before we turn it over to media, I just wanted to say behalf of the entire IR team that you have been a fantastic partner for us.
Ed Bastian -- Chief Executive Officer
Hey, thank you very much, Jill.
Jill Greer -- Vice President, Investor Relations
We look forward to working with him, and we've been lucky to work with and learn from one of the best. So, we'll hand it over to the media team.
Ed Bastian -- Chief Executive Officer
Great, Jill. If we could, as we transition to the questions and answers from members of the media, if you wouldn't mind, just repeating the instructions and a reminder that we just like to keep the questions themselves as succinct and short as possible with one follow-up to allow us to get to as many of these as we possibly could.
Operator
(Operator Instructions) We will hear first from David Koenig with the Associated Press.
David Koenig -- Associated Press -- Analyst
Hi, thanks. Thanks for giving me this chance. I did have a question, a follow-up to one of the analyst questions on the MAX cancellations and the interline agreements, are those customers coming over on interline agreements? How profitable are those? And I'll include my follow-up here. Do you have any forecast yet as to how many additional passengers you might see because of MAX related cancellations at your other airlines?
Ed Bastian -- Chief Executive Officer
David, this is Ed. It's -- the MAX, it represents a really small part of our industry's market share at this point and we're not going to get into any specific details relative to interline arrangements we have with some of our partners that maybe flying that product.
David Koenig -- Associated Press -- Analyst
Does that mean you do not expect many passengers to come over on those?
Ed Bastian -- Chief Executive Officer
I would expect the numbers are not going to be material to Delta.
David Koenig -- Associated Press -- Analyst
Okay. Okay, thanks.
Operator
We'll now hear from Tracy Rucinski with Reuters.
Tracy Rucinski -- Reuters -- Analyst
Hi. You indicated that the size of any Alitalia stake would be limited. How large of a stake is Delta willing to take and what has held up a deal so far?
Ed Bastian -- Chief Executive Officer
We are not going to speculate on either the size of our investment other than what we've already said, or the time it's going to take to bring that to conclusion.
Operator
Anything further, Tracy.
Tracy Rucinski -- Reuters -- Analyst
No, that's it. Thank you.
Operator
Thank you. Moving to Edward Russell with FlightGlobal.
Edward Russell -- FlightGlobal -- Analyst
Yes. Paul, you mentioned that Delta is accelerating the retirement of the MD-90s. Could you outline how -- when does Delta plan to remove the MD-90 fleet?
Paul Jacobson -- Executive Vice President & Chief Financial Officer
Well, what I mentioned in my comments is that we're considering that, we expect to make that announcement in the quarter, at which point, we will provide more details on exact timing, replacement, et cetera.
Edward Russell -- FlightGlobal -- Analyst
Okay. And then a second question on premium products. What is -- how is Delta viewing and you're shrinking your business cabins on some of your new aircraft A330-900, 777-200. I mean how do you view premium demand when you're upfront cabins are shrinking on these wide bodies?
Glen Hauenstein -- President
Well, we don't look at it as reducing the number of premium seats because we're introducing an entirely new cabin on the airplane. So what we're trying to do is best match the consumer demand with the products and services that we have.
So if you look at the total premium seats on those airplanes, they are actually increasing as we introduce Delta premium select to the international marketplace. And that will be complete but on all of the international wide bodies by 2021 and we're very excited with the initial returns that customers are selecting that I think when we look back at what customers wanted to buy from us years back, we had coach and then we had a flat-bed, and there were so many opportunities to satisfy consumer demands in between. So now having all five cabins available, I think we feel very comfortable with the size of each one of those.
Jill Greer -- Vice President, Investor Relations
Jake, we have time for one final question, please.
Operator
And that last question will come from Elliott Blackburn with Argus Media.
Elliott Blackburn -- Argus Media -- Analyst
Good morning, and thanks. I squeeze in again. I just hope to get an update on the progress Delta has made on efforts to find a partner at the Trainer refinery?
Ed Bastian -- Chief Executive Officer
Sure. We -- as we stated in January, we continue to work through that. That is it's been a long process because it's been a complex one. We still do that. We have no update to that guidance at this point.
Elliott Blackburn -- Argus Media -- Analyst
And I guess if there is any kind of outlook, you can give on the role of that refinery within Delta going forward. Does it take on any greater or lesser importance as we see kind of forecast for higher distillate prices next year and kind of a general rising jet fuel environment? What's kind of your longer term outlook on that facility?
Paul Jacobson -- Executive Vice President & Chief Financial Officer
Sure. The refinery has always been a strong asset for Delta and the process that we outline was in an effort to try to find ways to strategically enhance that value to Delta, but as we look at both the forward curves out in the out years, the potential prospects of increased prices of jet fuel as it relates to IMO 2020, there's obviously a forward view of profitability at that refinery, which will serve as a very effective calendar effect to increasing fuel prices, not only the direct production from the refinery, but also the fact that we've been able to use that production to lower our prices throughout the country and throughout all the sites where we purchased jet fuel has created a sustainable advantage for Delta, and we don't expect that to change under any circumstance.
Elliott Blackburn -- Argus Media -- Analyst
Thanks very much.
Jill Greer -- Vice President, Investor Relations
With that, I would like to close by thanking everybody for their time today, particularly thanking Ed, Glen and Paul for their comments. I'd add my personal thanks to Ned for his help during these weeks of transition, and thank you everyone again for your time, and we will see you on July 11 for second quarter.
Operator
And everyone, that does conclude today's conference. Thank you for your participation today.
Duration: 59 minutes
Call participants:
Jill Greer -- Vice President, Investor Relations
Ed Bastian -- Chief Executive Officer
Glen Hauenstein -- President
Paul Jacobson -- Executive Vice President & Chief Financial Officer
Joseph DeNardi -- Stifel, Nicolaus & Co. -- Analyst
Joe Caiado -- Credit Suisse -- Analyst
Hunter Keay -- Wolfe Research -- Analyst
Duane Pfennigwerth -- Evercore ISI -- Analyst
Helane Becker -- Cowen Securities -- Analyst
David Vernon -- Bernstein -- Analyst
Jamie Baker -- JP Morgan -- Analyst
Mike Linenberg -- Deutsche Bank -- Analyst
Dan McKenzie -- Buckingham Research -- Analyst
David Koenig -- Associated Press -- Analyst
Tracy Rucinski -- Reuters -- Analyst
Edward Russell -- FlightGlobal -- Analyst
Elliott Blackburn -- Argus Media -- Analyst
More DAL analysis
Transcript powered by AlphaStreet
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see ourTerms and Conditionsfor additional details, including our Obligatory Capitalized Disclaimers of Liability.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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During the quarter, there were exciting developments in loyalty, our maintenance, repair and overhaul business and fleet that ensure we build on our earnings momentum, strengthened our strategic advantages and further diversify our revenue streams. We made good progress on our long-term priorities to drive top line and earnings growth by leveraging our network, premium offerings, our co-brand agreement with American Express and our ancillary businesses. Paul Jacobson -- Executive Vice President & Chief Financial Officer Well, what I mentioned in my comments is that we're considering that, we expect to make that announcement in the quarter, at which point, we will provide more details on exact timing, replacement, et cetera.
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Looking to the June quarter, expected top line growth of 6% to 8% combined with 1% to 2% growth in our non-fuel unit costs and a slight moderation in fuel prices over prior year, supports our expectation for continued margin expansion and another quarter of double-digit EPS growth. The March quarter result, an incremental benefit from AmEx give us increasing confidence in achieving the high end of our full year free cash flow guidance of $3 billion to $4 billion compared to $2.3 billion last year. Duration: 59 minutes Call participants: Jill Greer -- Vice President, Investor Relations Ed Bastian -- Chief Executive Officer Glen Hauenstein -- President Paul Jacobson -- Executive Vice President & Chief Financial Officer Joseph DeNardi -- Stifel, Nicolaus & Co. -- Analyst Joe Caiado -- Credit Suisse -- Analyst Hunter Keay -- Wolfe Research -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Helane Becker -- Cowen Securities -- Analyst David Vernon -- Bernstein -- Analyst Jamie Baker -- JP Morgan -- Analyst Mike Linenberg -- Deutsche Bank -- Analyst Dan McKenzie -- Buckingham Research -- Analyst David Koenig -- Associated Press -- Analyst Tracy Rucinski -- Reuters -- Analyst Edward Russell -- FlightGlobal -- Analyst Elliott Blackburn -- Argus Media -- Analyst More DAL analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool.
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Looking to the June quarter, expected top line growth of 6% to 8% combined with 1% to 2% growth in our non-fuel unit costs and a slight moderation in fuel prices over prior year, supports our expectation for continued margin expansion and another quarter of double-digit EPS growth. The refinery has always been a strong asset for Delta and the process that we outline was in an effort to try to find ways to strategically enhance that value to Delta, but as we look at both the forward curves out in the out years, the potential prospects of increased prices of jet fuel as it relates to IMO 2020, there's obviously a forward view of profitability at that refinery, which will serve as a very effective calendar effect to increasing fuel prices, not only the direct production from the refinery, but also the fact that we've been able to use that production to lower our prices throughout the country and throughout all the sites where we purchased jet fuel has created a sustainable advantage for Delta, and we don't expect that to change under any circumstance. Duration: 59 minutes Call participants: Jill Greer -- Vice President, Investor Relations Ed Bastian -- Chief Executive Officer Glen Hauenstein -- President Paul Jacobson -- Executive Vice President & Chief Financial Officer Joseph DeNardi -- Stifel, Nicolaus & Co. -- Analyst Joe Caiado -- Credit Suisse -- Analyst Hunter Keay -- Wolfe Research -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Helane Becker -- Cowen Securities -- Analyst David Vernon -- Bernstein -- Analyst Jamie Baker -- JP Morgan -- Analyst Mike Linenberg -- Deutsche Bank -- Analyst Dan McKenzie -- Buckingham Research -- Analyst David Koenig -- Associated Press -- Analyst Tracy Rucinski -- Reuters -- Analyst Edward Russell -- FlightGlobal -- Analyst Elliott Blackburn -- Argus Media -- Analyst More DAL analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool.
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Ed Bastian -- Chief Executive Officer Duane, we are under contract confidentiality obviously with the American Express that you can appreciate. Glen Hauenstein -- President As you know, last year was one of the best years we've had in many years in the Transatlantic, and this year is shaping up to be another great year. Duration: 59 minutes Call participants: Jill Greer -- Vice President, Investor Relations Ed Bastian -- Chief Executive Officer Glen Hauenstein -- President Paul Jacobson -- Executive Vice President & Chief Financial Officer Joseph DeNardi -- Stifel, Nicolaus & Co. -- Analyst Joe Caiado -- Credit Suisse -- Analyst Hunter Keay -- Wolfe Research -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Helane Becker -- Cowen Securities -- Analyst David Vernon -- Bernstein -- Analyst Jamie Baker -- JP Morgan -- Analyst Mike Linenberg -- Deutsche Bank -- Analyst Dan McKenzie -- Buckingham Research -- Analyst David Koenig -- Associated Press -- Analyst Tracy Rucinski -- Reuters -- Analyst Edward Russell -- FlightGlobal -- Analyst Elliott Blackburn -- Argus Media -- Analyst More DAL analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool.
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721823.0
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2019-04-09 00:00:00 UTC
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Tuesday Sector Laggards: Energy, Industrial
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https://www.nasdaq.com/articles/tuesday-sector-laggards-energy-industrial-2019-04-09
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The worst performing sector as of midday Tuesday is the Energy sector, showing a 1.4% loss. Within that group, Noble Energy Inc (Symbol: NBL) and Concho Resources Inc (Symbol: CXO) are two large stocks that are lagging, showing a loss of 3.5% and 3.5%, respectively. Among energy ETFs, one ETF following the sector is the Energy Select Sector SPDR ETF (Symbol: XLE), which is down 1.2% on the day, and up 17.88% year-to-date. Noble Energy Inc, meanwhile, is up 31.66% year-to-date, and Concho Resources Inc is up 5.31% year-to-date. Combined, NBL and CXO make up approximately 2.7% of the underlying holdings of XLE.
The next worst performing sector is the Industrial sector, showing a 1.1% loss. Among large Industrial stocks, Pentair PLC (Symbol: PNR) and Deere & Co. (Symbol: DE) are the most notable, showing a loss of 13.8% and 2.9%, respectively. One ETF closely tracking Industrial stocks is the Industrial Select Sector SPDR ETF (XLI), which is down 1.2% in midday trading, and up 18.25% on a year-to-date basis. Pentair PLC, meanwhile, is up 3.73% year-to-date, and Deere & Co. is up 7.96% year-to-date. Combined, PNR and DE make up approximately 2.5% of the underlying holdings of XLI.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Tuesday. As you can see, none of the sectors are up on the day, while nine sectors are down.
25 Dividend Giants Widely Held By ETFs »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Combined, NBL and CXO make up approximately 2.7% of the underlying holdings of XLE. Combined, PNR and DE make up approximately 2.5% of the underlying holdings of XLI. Among large Industrial stocks, Pentair PLC (Symbol: PNR) and Deere & Co. (Symbol: DE) are the most notable, showing a loss of 13.8% and 2.9%, respectively.
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Among large Industrial stocks, Pentair PLC (Symbol: PNR) and Deere & Co. (Symbol: DE) are the most notable, showing a loss of 13.8% and 2.9%, respectively. Combined, NBL and CXO make up approximately 2.7% of the underlying holdings of XLE. Pentair PLC, meanwhile, is up 3.73% year-to-date, and Deere & Co. is up 7.96% year-to-date.
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Combined, NBL and CXO make up approximately 2.7% of the underlying holdings of XLE. Among large Industrial stocks, Pentair PLC (Symbol: PNR) and Deere & Co. (Symbol: DE) are the most notable, showing a loss of 13.8% and 2.9%, respectively. Pentair PLC, meanwhile, is up 3.73% year-to-date, and Deere & Co. is up 7.96% year-to-date.
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Among large Industrial stocks, Pentair PLC (Symbol: PNR) and Deere & Co. (Symbol: DE) are the most notable, showing a loss of 13.8% and 2.9%, respectively. Combined, NBL and CXO make up approximately 2.7% of the underlying holdings of XLE. Pentair PLC, meanwhile, is up 3.73% year-to-date, and Deere & Co. is up 7.96% year-to-date.
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721824.0
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2019-04-09 00:00:00 UTC
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A Closer Look At Deere’s Revenue Breakdown
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https://www.nasdaq.com/articles/closer-look-deeres-revenue-breakdown-2019-04-09
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Deere’s (NYSE: DE) overall revenue grew 26% year-over-year to $37 billion while net income surged by 10% to $2.4 billion in fiscal 2018, driven by strong performance across operating segments. The company continued its strong performance in Q1’19, reporting revenue of $7.9 billion (+15% y-o-y) and its adjusted diluted earnings were up over 14% year-on-year to $1.54. Trefis’ model for the company breaks it down into three key components of this revenue figure:
Agriculture and Turf Equipment (60% of total revenues)
Construction and Forestry Equipment (31% of total revenues)
Financial Services (9% of total revenues)
Going forward, we expect Deere’s revenues to increase by 7.5% to reach $40.2 billion in FY 2019. We currently have a price estimate of $174 per share for Deere, which is ahead of the current market price. We have summarized our revenue expectations for Deere, based on the company’s guidance and our own estimates, on our interactive dashboard Summarizing Deere’s Revenue Breakdown. You can modify any of our key drivers to gauge the impact changes would have on its valuation, and see all Trefis Industrial company data here.
How Has Deere’s Total Revenue Changed Over The Years?
Deere’s total revenue increased by more than $10 billion from 2016 to 2018 (CAGR of 18.4%) while recording $37.4 billion in revenue in FY 2018.
Revenue growth was primarily driven by strong sales across equipment operations (Agriculture and Turf and Construction and Forestry Equipment)
In 2019, we expect the company’s total revenues to grow at a slower rate and add nearly $2.8 billion to net sales.
What Drove Growth In Revenues Of Agriculture and Turf Equipment Segment?
This segment primarily manufactures and distributes a full line of agriculture and turf equipment and related service parts, including: large, medium, and utility tractors, along with a broad line of associated implements and other outdoor power products.
Deere’s Agriculture Segment consistently contributes a majority of its revenues, with an average revenue share of more than 65% in the last 3 years.
However, the segment’s share has declined from approximately 69% in 2016 to nearly 62% in 2018 due to faster growth of the Construction and Forestry Equipment segment.
The segment grew by 15% year-over-year in fiscal 2018, contributing more than $3.0 billion to total incremental revenues.
We expect the segment to continue its sustained growth and record $24.5 billion in revenues in FY 2019, with the EBITDA margin improving by 20 basis points to 17.6%.
The growth is expected to be driven by higher shipment volumes and price realization, partially offset by higher warranty-related expenses.
What Drove Changes To Revenues of Construction and Forestry Equipment?
This segment primarily manufactures and distributes a broad range of machines and service parts used in construction, earthmoving, road building, material handling and timber harvesting.
The Construction and Forestry Equipment segment has achieved robust growth in the last three years, doubling its revenues from less than $5.0 billion in 2016 to more than $10 billion in 2018 (CAGR 44%)
The segment continued its solid performance in Q1’19, as sales increased by nearly 31% y-o-y to $2.3 billion, primarily driven by the acquisition of Wirtgen and higher shipment volumes.
We expect this segment to continue its growth trajectory, with revenues increasing at a rate of 18% to $12.3 billion in FY 2019.
The segment’s contribution to total revenues has significantly increased over the years, which is expected to continue in the foreseeable future.
What Has Been The Contribution Of Financial Services To Deere’s Revenue?
This segment primarily finances sales and leases by John Deere dealers of new and used agriculture and turf equipment as well as construction and forestry equipment.
The segment has grown steadily over recent years, adding approximately $560 million of revenue over 2016-2018 (CAGR of 9.9%).
In 2019, we expect this segment to add nearly $220 million to total revenues.
The segment’s share to total revenues has marginally declined over the years. Going forward, we expect this share to remain constant.
What’s behind Trefis? See How it’s Powering New Collaboration and What-Ifs
For CFOs and Finance Teams | Product, R&D, and Marketing Teams
More Trefis Research
Like our charts? Explore example interactive dashboards and create your ow
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere’s (NYSE: DE) overall revenue grew 26% year-over-year to $37 billion while net income surged by 10% to $2.4 billion in fiscal 2018, driven by strong performance across operating segments. Trefis’ model for the company breaks it down into three key components of this revenue figure: Agriculture and Turf Equipment (60% of total revenues) Construction and Forestry Equipment (31% of total revenues) Financial Services (9% of total revenues) Going forward, we expect Deere’s revenues to increase by 7.5% to reach $40.2 billion in FY 2019. We currently have a price estimate of $174 per share for Deere, which is ahead of the current market price.
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Trefis’ model for the company breaks it down into three key components of this revenue figure: Agriculture and Turf Equipment (60% of total revenues) Construction and Forestry Equipment (31% of total revenues) Financial Services (9% of total revenues) Going forward, we expect Deere’s revenues to increase by 7.5% to reach $40.2 billion in FY 2019. Deere’s (NYSE: DE) overall revenue grew 26% year-over-year to $37 billion while net income surged by 10% to $2.4 billion in fiscal 2018, driven by strong performance across operating segments. We currently have a price estimate of $174 per share for Deere, which is ahead of the current market price.
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Trefis’ model for the company breaks it down into three key components of this revenue figure: Agriculture and Turf Equipment (60% of total revenues) Construction and Forestry Equipment (31% of total revenues) Financial Services (9% of total revenues) Going forward, we expect Deere’s revenues to increase by 7.5% to reach $40.2 billion in FY 2019. Deere’s (NYSE: DE) overall revenue grew 26% year-over-year to $37 billion while net income surged by 10% to $2.4 billion in fiscal 2018, driven by strong performance across operating segments. We currently have a price estimate of $174 per share for Deere, which is ahead of the current market price.
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Trefis’ model for the company breaks it down into three key components of this revenue figure: Agriculture and Turf Equipment (60% of total revenues) Construction and Forestry Equipment (31% of total revenues) Financial Services (9% of total revenues) Going forward, we expect Deere’s revenues to increase by 7.5% to reach $40.2 billion in FY 2019. Deere’s (NYSE: DE) overall revenue grew 26% year-over-year to $37 billion while net income surged by 10% to $2.4 billion in fiscal 2018, driven by strong performance across operating segments. We currently have a price estimate of $174 per share for Deere, which is ahead of the current market price.
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d1bf442c-a4d5-4212-9b99-68d03229a914
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721825.0
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2019-04-02 00:00:00 UTC
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Noteworthy Tuesday Option Activity: DE, TECD, NUE
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-de-tecd-nue-2019-04-02
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 6,937 contracts have traded so far, representing approximately 693,700 underlying shares. That amounts to about 42% of DE's average daily trading volume over the past month of 1.7 million shares. Particularly high volume was seen for the $155 strike put option expiring April 18, 2019, with 1,741 contracts trading so far today, representing approximately 174,100 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $155 strike highlighted in orange:
Tech Data Corp. (Symbol: TECD) options are showing a volume of 2,065 contracts thus far today. That number of contracts represents approximately 206,500 underlying shares, working out to a sizeable 41.3% of TECD's average daily trading volume over the past month, of 500,340 shares. Particularly high volume was seen for the $105 strike put option expiring June 21, 2019, with 1,350 contracts trading so far today, representing approximately 135,000 underlying shares of TECD. Below is a chart showing TECD's trailing twelve month trading history, with the $105 strike highlighted in orange:
And Nucor Corp. (Symbol: NUE) saw options trading volume of 8,970 contracts, representing approximately 897,000 underlying shares or approximately 40.2% of NUE's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $61 strike call option expiring May 03, 2019, with 1,550 contracts trading so far today, representing approximately 155,000 underlying shares of NUE. Below is a chart showing NUE's trailing twelve month trading history, with the $61 strike highlighted in orange:
For the various different available expirations for DE options, TECD options, or NUE options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $155 strike put option expiring April 18, 2019, with 1,741 contracts trading so far today, representing approximately 174,100 underlying shares of DE. Particularly high volume was seen for the $105 strike put option expiring June 21, 2019, with 1,350 contracts trading so far today, representing approximately 135,000 underlying shares of TECD. Especially high volume was seen for the $61 strike call option expiring May 03, 2019, with 1,550 contracts trading so far today, representing approximately 155,000 underlying shares of NUE.
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Below is a chart showing DE's trailing twelve month trading history, with the $155 strike highlighted in orange: Tech Data Corp. (Symbol: TECD) options are showing a volume of 2,065 contracts thus far today. Below is a chart showing TECD's trailing twelve month trading history, with the $105 strike highlighted in orange: And Nucor Corp. (Symbol: NUE) saw options trading volume of 8,970 contracts, representing approximately 897,000 underlying shares or approximately 40.2% of NUE's average daily trading volume over the past month, of 2.2 million shares. Below is a chart showing NUE's trailing twelve month trading history, with the $61 strike highlighted in orange: For the various different available expirations for DE options, TECD options, or NUE options, visit StockOptionsChannel.com.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 6,937 contracts have traded so far, representing approximately 693,700 underlying shares. Particularly high volume was seen for the $155 strike put option expiring April 18, 2019, with 1,741 contracts trading so far today, representing approximately 174,100 underlying shares of DE. Below is a chart showing TECD's trailing twelve month trading history, with the $105 strike highlighted in orange: And Nucor Corp. (Symbol: NUE) saw options trading volume of 8,970 contracts, representing approximately 897,000 underlying shares or approximately 40.2% of NUE's average daily trading volume over the past month, of 2.2 million shares.
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Below is a chart showing TECD's trailing twelve month trading history, with the $105 strike highlighted in orange: And Nucor Corp. (Symbol: NUE) saw options trading volume of 8,970 contracts, representing approximately 897,000 underlying shares or approximately 40.2% of NUE's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $61 strike call option expiring May 03, 2019, with 1,550 contracts trading so far today, representing approximately 155,000 underlying shares of NUE. Below is a chart showing NUE's trailing twelve month trading history, with the $61 strike highlighted in orange: For the various different available expirations for DE options, TECD options, or NUE options, visit StockOptionsChannel.com.
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721826.0
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2019-04-02 00:00:00 UTC
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Noteworthy Tuesday Option Activity: DE, TECD, NUE
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-de-tecd-nue-2019-04-02-0
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 6,937 contracts have traded so far, representing approximately 693,700 underlying shares. That amounts to about 42% of DE's average daily trading volume over the past month of 1.7 million shares. Particularly high volume was seen for the $155 strike put option expiring April 18, 2019 , with 1,741 contracts trading so far today, representing approximately 174,100 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $155 strike highlighted in orange:
Tech Data Corp. (Symbol: TECD) options are showing a volume of 2,065 contracts thus far today. That number of contracts represents approximately 206,500 underlying shares, working out to a sizeable 41.3% of TECD's average daily trading volume over the past month, of 500,340 shares. Particularly high volume was seen for the $105 strike put option expiring June 21, 2019 , with 1,350 contracts trading so far today, representing approximately 135,000 underlying shares of TECD. Below is a chart showing TECD's trailing twelve month trading history, with the $105 strike highlighted in orange:
And Nucor Corp. (Symbol: NUE) saw options trading volume of 8,970 contracts, representing approximately 897,000 underlying shares or approximately 40.2% of NUE's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $61 strike call option expiring May 03, 2019 , with 1,550 contracts trading so far today, representing approximately 155,000 underlying shares of NUE. Below is a chart showing NUE's trailing twelve month trading history, with the $61 strike highlighted in orange:
For the various different available expirations for DE options , TECD options , or NUE options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $155 strike put option expiring April 18, 2019 , with 1,741 contracts trading so far today, representing approximately 174,100 underlying shares of DE. Particularly high volume was seen for the $105 strike put option expiring June 21, 2019 , with 1,350 contracts trading so far today, representing approximately 135,000 underlying shares of TECD. Especially high volume was seen for the $61 strike call option expiring May 03, 2019 , with 1,550 contracts trading so far today, representing approximately 155,000 underlying shares of NUE.
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Below is a chart showing DE's trailing twelve month trading history, with the $155 strike highlighted in orange: Tech Data Corp. (Symbol: TECD) options are showing a volume of 2,065 contracts thus far today. Below is a chart showing TECD's trailing twelve month trading history, with the $105 strike highlighted in orange: And Nucor Corp. (Symbol: NUE) saw options trading volume of 8,970 contracts, representing approximately 897,000 underlying shares or approximately 40.2% of NUE's average daily trading volume over the past month, of 2.2 million shares. Below is a chart showing NUE's trailing twelve month trading history, with the $61 strike highlighted in orange: For the various different available expirations for DE options , TECD options , or NUE options , visit StockOptionsChannel.com.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 6,937 contracts have traded so far, representing approximately 693,700 underlying shares. Particularly high volume was seen for the $155 strike put option expiring April 18, 2019 , with 1,741 contracts trading so far today, representing approximately 174,100 underlying shares of DE. Below is a chart showing TECD's trailing twelve month trading history, with the $105 strike highlighted in orange: And Nucor Corp. (Symbol: NUE) saw options trading volume of 8,970 contracts, representing approximately 897,000 underlying shares or approximately 40.2% of NUE's average daily trading volume over the past month, of 2.2 million shares.
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Particularly high volume was seen for the $105 strike put option expiring June 21, 2019 , with 1,350 contracts trading so far today, representing approximately 135,000 underlying shares of TECD. Below is a chart showing TECD's trailing twelve month trading history, with the $105 strike highlighted in orange: And Nucor Corp. (Symbol: NUE) saw options trading volume of 8,970 contracts, representing approximately 897,000 underlying shares or approximately 40.2% of NUE's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $61 strike call option expiring May 03, 2019 , with 1,550 contracts trading so far today, representing approximately 155,000 underlying shares of NUE.
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721827.0
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2019-04-02 00:00:00 UTC
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Favorable Markets, Acquisition Aid Deere Amid Cost Woes
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https://www.nasdaq.com/articles/favorable-markets-acquisition-aid-deere-amid-cost-woes-2019-04-02-0
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On Apr 1, we issued an updated research report on Deere & CompanyDE . Improving construction markets and growing replacement demand for agricultural equipment are likely to drive growth for the company. Acquisitions and introduction of advanced technologies in its products also remain key catalysts. However, higher raw material costs and unfavorable foreign currency are likely to affect near-term margin performance.
Let's illustrate the factors in detail.
Agricultural & Construction Markets Hold Promise
For fiscal 2019, Deere anticipates net sales to increase about 7% year over year and projects net income of about $3.6 billion. This will likely be driven by improving demand in agricultural and construction equipment markets.
Deere estimates Agriculture and Turf equipment sales to increase about 4% in fiscal 2019, up from the previously mentioned 3% improvement. Industry sales of agricultural equipment in the United States and Canada are anticipated to be flat to up 5%. This will be backed by demand for large and small equipment. Replacement demand also continues to drive order activity on account of the pressing need to replace older fleet and take advantage of the new technology available.
U.S. crop cash receipts, an important indicator for equipment demand, are estimated to be about $124 billion in fiscal 2019 - the highest since fiscal 2014. Further, higher corn, wheat and cotton prices will offset softness in the soybean market.
Following the aid of $1.65 per bushel from the U.S. Department of Agriculture, dynamics for soybean will improve this year. Moreover, per the USDA's latest available projections, net farm is anticipated to increase 10% year over year in fiscal 2019 after a decline of 16% in fiscal 2018.
Deere projects global sales for Construction & Forestry equipment to rise 13% in fiscal 2019, backed by strong demand for equipment and the Wirtgen acquisition. In forestry, global industry sales are expected to be up 5-10%, primarily driven by higher demand in EU countries and Russia.
The segment's operating margin is projected to be about 12%. Economic environment for construction, forestry and road building industries holds promise and continues to support elevated demand for new and used equipment.
Wirtgen Acquisition - Key Growth Driver
The company acquired the world's leading road-construction equipment maker, Wirtgen, in December 2017. The buyout significantly enhanced Deere's exposure to global transportation infrastructure. Wirtgen's integration is on track. Deere updated its synergy target to EUR 125 million by 2022. It also completed the acquisition of PLA, which will assist it in providing innovative, cost-effective equipment, technology and services to customers.
Technologically Advanced Products Provide Competitive Edge
Deere will benefit from introduction of advanced technologies in its products. The company's proprietary and foundational precision technologies such as guidance, telematics, onboard computing and digital operations center call for up to 20 years of investment. These foundational elements serve as key enablers for its latest advanced technologies and the combination creates the most differentiated and integrated solution in the marketplace.
Moreover, Deere's efforts to expand in precision agriculture will be a game changer. In September 2017, the company acquired Sunnyvale, CA-based Blue River Technology, a pioneer in bringing machine learning to agricultural spraying equipment. Blue River's technology aided precision agriculture by shifting farm-management decisions from the field level to the plant level.
Impact of Trade War
The implementation of tariffs and apprehensions, regarding stretched out trade talks between the United States and China, weighed on market sentiment and caused farmers to become more cautious about making major purchases. It will continue to hinder the company's results until a resolution is reached. Further, the implementation of tariffs led to raw material cost inflation.
A Few Headwinds to Conquer
Deere will be affected by elevated expenses in fiscal 2019. It expects SA&G expenses to rise about 5% in the fiscal year. R&D expenses are forecasted to be up 5% in fiscal 2019, owing to investments in precision agriculture as well as next-generation product development programs for large agricultural product lines.
Furthermore, unfavorable impact of acquisition costs and purchase accounting related to the Wirtgen buyout will dampen earnings. The company expects an unfavorable impact of 2% for foreign-currency translation in fiscal 2019.
Share Price Performance
Deere's shares have gained 5.8% over the past year while the industry it belongs to grew 2.9%.
Zacks Rank & Stocks to Consider
Deere currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are Lawson Products, Inc. LAWS , DMC Global Inc. BOOM and CECO Environmental Corp. CECE . While Lawson Products currently sports a Zacks Rank #1 (Strong Buy), DMC Global and CECO Environmental carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Lawson Products has a long-term earnings growth rate of 17.5%. Its shares have moved up 28% in the past year.
DMC Global has a long-term earnings growth rate of 20%. The stock has soared 100% in a year's time.
CECO has a long-term earnings growth rate of 15%. The company's shares have gained around 61% in the past year.
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Deere & Company (DE): Free Stock Analysis Report
DMC Global Inc. (BOOM): Free Stock Analysis Report
Lawson Products, Inc. (LAWS): Free Stock Analysis Report
CECO Environmental Corp. (CECE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On Apr 1, we issued an updated research report on Deere & CompanyDE . Improving construction markets and growing replacement demand for agricultural equipment are likely to drive growth for the company. Let's illustrate the factors in detail.
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Agricultural & Construction Markets Hold Promise For fiscal 2019, Deere anticipates net sales to increase about 7% year over year and projects net income of about $3.6 billion. Click to get this free report Deere & Company (DE): Free Stock Analysis Report DMC Global Inc. (BOOM): Free Stock Analysis Report Lawson Products, Inc. (LAWS): Free Stock Analysis Report CECO Environmental Corp. (CECE): Free Stock Analysis Report To read this article on Zacks.com click here. On Apr 1, we issued an updated research report on Deere & CompanyDE .
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Agricultural & Construction Markets Hold Promise For fiscal 2019, Deere anticipates net sales to increase about 7% year over year and projects net income of about $3.6 billion. Deere projects global sales for Construction & Forestry equipment to rise 13% in fiscal 2019, backed by strong demand for equipment and the Wirtgen acquisition. Click to get this free report Deere & Company (DE): Free Stock Analysis Report DMC Global Inc. (BOOM): Free Stock Analysis Report Lawson Products, Inc. (LAWS): Free Stock Analysis Report CECO Environmental Corp. (CECE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Improving construction markets and growing replacement demand for agricultural equipment are likely to drive growth for the company. Deere projects global sales for Construction & Forestry equipment to rise 13% in fiscal 2019, backed by strong demand for equipment and the Wirtgen acquisition. On Apr 1, we issued an updated research report on Deere & CompanyDE .
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f25e6ef3-df56-47e3-a3f1-07e96a3efabf
|
721828.0
|
2019-03-29 00:00:00 UTC
|
Is Deere a Buy?
|
DE
|
https://www.nasdaq.com/articles/deere-buy-2019-03-29
|
nan
|
nan
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It's a classic investment conundrum: How comfortable do you feel buying a stock with some near-term earnings risk, but strong long-term growth prospects? That's the question facing potential investors in Deere (NYSE: DE) right now. Let's take a closer look at what's going on with the company in 2019 and the investment proposition overall.
The near-term risk facing Deere
Soybeans are one of the key battleground issues in the U.S./China trade conflict. That matters for Deere, because a loss of revenue from exports to China could cause U.S. farmers to buy less agricultural equipment. As such, Deere is seen as one of the companies under threat from a protracted trade dispute.
Indeed, there's evidence that Deere is already seeing some impact. For example, during the company's first-quarter earnings call in February the Manager of Investor Communications, Brent Norwood, noted that "uncertainty has weighed on farmer sentiment throughout the year" and "the market uncertainty has resulted in some U.S. farmers temporarily pausing equipment investment decisions." As such, early order "programs sales momentum observably shifted in reaction to external factors such as the rise of global trade tensions," according to Norwood.
Soybeans are one of the key battlegrounds in the U.S./China trade dispute. Image source: Getty Images.
Guidance maintained, for now
While management's commentary is uninspiring, full-year guidance was maintained, with full-year U.S. & Canada sales still expected to grow in the 0%-5% range. The only change was that margin in the agriculture & turf segment is now expected to be 12% compared to a previous forecast of 12.5%. For reference, the agriculture & turf segment contributed 76% of total equipment operating profit in 2018 with operating margin of 12.1%.
The reason for the margin guidance cut? "Large agricultural equipment" comprises relatively high-margin products, and North American large agricultural equipment sales are now forecast to be flat.
However, on the whole, full-year guidance was maintained, and total company net sales are still expected to increase 7%, with net income still expected to be around $3.6 billion, representing a 17% increase on last year. Deere is seeing improving trends in sales of smaller agricultural equipment and countries like Brazil.
Data source: Deere presentations. Chart by author.
That said, if Deere is seeing some hesitancy in large equipment orders from farmers due to the trade conflict and upheaval in the soybean market, then it's reasonable to fear more of an impact in the future if trade friction continues. In other words, don't be surprised if Deere has to lower near-term guidance.
The long view
The key question is whether the impact of the trade dispute is going to be a temporary or permanent one. If it's the former, then long-term investors are likely to simply brush off any lowering of guidance as a mere blemish on an attractive bigger picture. If the latter, then Deere could be challenged by a structural problem for years to come.
When answering a question on the matter during theearnings call CFO Raj Kalathur expressed his belief that "trade flows will reroute," while Director of Investor Relations Josh Jepsen argued that " We've seen more of our soybeans go into places like Europe, like Egypt, former Brazilian trade partners."
In a nutshell, management's argument is that U.S. soybean exports will simply go elsewhere now that China has imposed sanctions on imports from the U.S.
For example, customers that were regular buyers of Brazilian soybeans, which now go to China in place of American exports, will now buy from the U.S. in order to fill the gap. It's just one of the reasons why fears over tariffs are overblown.
Why Deere's management is right
Fortunately, there's evidence to suggest that Deere's management is right. For example, when the tariff issue hit in the summer, the spread between Brazil and U.S. soybean export prices blew up to around $100 a ton from the normal spread of a few dollars. However, the latest data from the United States Department of Agriculture (USDA) shows that the spread has closed to normal levels since the end of the 2018. In fact, the latest USDA data indicates that U.S. export prices are now higher than Brazil's.
Moreover, the drop in demand from China has been partly offset by increased demand from other countries. For example, the USDA points out that U.S. soybean export commitments (defined as outstanding sales plus accumulated exports) to China at the end of February were just 9.4 million tons, compared to 27.7 million tons a year ago. However, total commitments to the world were 39 million tons, compared to 48 million a year ago.
Meanwhile, as Norwood pointed out, "three of the four major crops are expected to be higher in the 2018-2019 marketing year than in the previous year." For reference, he's referring to corn, wheat, and cotton. In fact, Deere is forecasting that U.S. farm cash receipts will increase by a few billion to around $390 billion.
Think long-term with Deere
There's strong evidence that U.S farmers are "filling the gap," and in the long-term Deere has good growth prospects thanks to its precision agriculture solutions -- the company is also an under-appreciated play on the Internet of Things.
Deere may well be forced to cut near-term guidance due to the upheaval caused by trade conflict, but that's probably not something that long-term investors should be worried about because U.S. farmers are already opening up new trade routes for soybeans. All told, Deere remains an attractive stock for long-term investors.
10 stocks we like better than Deere & Company
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 1, 2019
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
As such, early order "programs sales momentum observably shifted in reaction to external factors such as the rise of global trade tensions," according to Norwood. However, the latest data from the United States Department of Agriculture (USDA) shows that the spread has closed to normal levels since the end of the 2018. That's the question facing potential investors in Deere (NYSE: DE) right now.
|
That said, if Deere is seeing some hesitancy in large equipment orders from farmers due to the trade conflict and upheaval in the soybean market, then it's reasonable to fear more of an impact in the future if trade friction continues. For example, the USDA points out that U.S. soybean export commitments (defined as outstanding sales plus accumulated exports) to China at the end of February were just 9.4 million tons, compared to 27.7 million tons a year ago. That's the question facing potential investors in Deere (NYSE: DE) right now.
|
That said, if Deere is seeing some hesitancy in large equipment orders from farmers due to the trade conflict and upheaval in the soybean market, then it's reasonable to fear more of an impact in the future if trade friction continues. Think long-term with Deere There's strong evidence that U.S farmers are "filling the gap," and in the long-term Deere has good growth prospects thanks to its precision agriculture solutions -- the company is also an under-appreciated play on the Internet of Things. Deere may well be forced to cut near-term guidance due to the upheaval caused by trade conflict, but that's probably not something that long-term investors should be worried about because U.S. farmers are already opening up new trade routes for soybeans.
|
That said, if Deere is seeing some hesitancy in large equipment orders from farmers due to the trade conflict and upheaval in the soybean market, then it's reasonable to fear more of an impact in the future if trade friction continues. Deere may well be forced to cut near-term guidance due to the upheaval caused by trade conflict, but that's probably not something that long-term investors should be worried about because U.S. farmers are already opening up new trade routes for soybeans. That's the question facing potential investors in Deere (NYSE: DE) right now.
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7b60edaf-13b7-4413-b329-d36d3e6f4486
|
721829.0
|
2019-03-29 00:00:00 UTC
|
Is Deere a Buy?
|
DE
|
https://www.nasdaq.com/articles/deere-buy-2019-03-29-0
|
nan
|
nan
|
It's a classic investment conundrum: How comfortable do you feel buying a stock with some near-term earnings risk, but strong long-term growth prospects? That's the question facing potential investors in Deere (NYSE: DE) right now. Let's take a closer look at what's going on with the company in 2019 and the investment proposition overall.
The near-term risk facing Deere
Soybeans are one of the key battleground issues in the U.S./China trade conflict. That matters for Deere, because a loss of revenue from exports to China could cause U.S. farmers to buy less agricultural equipment. As such, Deere is seen as one of the companies under threat from a protracted trade dispute.
Indeed, there's evidence that Deere is already seeing some impact. For example, during the company's first-quarter earnings call in February the Manager of Investor Communications, Brent Norwood, noted that "uncertainty has weighed on farmer sentiment throughout the year" and "the market uncertainty has resulted in some U.S. farmers temporarily pausing equipment investment decisions." As such, early order "programs sales momentum observably shifted in reaction to external factors such as the rise of global trade tensions," according to Norwood.
Guidance maintained, for now
While management's commentary is uninspiring, full-year guidance was maintained, with full-year U.S. & Canada sales still expected to grow in the 0%-5% range. The only change was that margin in the agriculture & turf segment is now expected to be 12% compared to a previous forecast of 12.5%. For reference, the agriculture & turf segment contributed 76% of total equipment operating profit in 2018 with operating margin of 12.1%.
The reason for the margin guidance cut? "Large agricultural equipment" comprises relatively high-margin products, and North American large agricultural equipment sales are now forecast to be flat.
However, on the whole, full-year guidance was maintained, and total company net sales are still expected to increase 7%, with net income still expected to be around $3.6 billion, representing a 17% increase on last year. Deere is seeing improving trends in sales of smaller agricultural equipment and countries like Brazil.
That said, if Deere is seeing some hesitancy in large equipment orders from farmers due to the trade conflict and upheaval in the soybean market, then it's reasonable to fear more of an impact in the future if trade friction continues. In other words, don't be surprised if Deere has to lower near-term guidance.
The long view
The key question is whether the impact of the trade dispute is going to be a temporary or permanent one. If it's the former, then long-term investors are likely to simply brush off any lowering of guidance as a mere blemish on an attractive bigger picture. If the latter, then Deere could be challenged by a structural problem for years to come.
When answering a question on the matter during the earnings call , CFO Raj Kalathur expressed his belief that "trade flows will reroute," while Director of Investor Relations Josh Jepsen argued that " We've seen more of our soybeans go into places like Europe, like Egypt, former Brazilian trade partners."
In a nutshell, management's argument is that U.S. soybean exports will simply go elsewhere now that China has imposed sanctions on imports from the U.S.
For example, customers that were regular buyers of Brazilian soybeans, which now go to China in place of American exports, will now buy from the U.S. in order to fill the gap. It's just one of the reasons why fears over tariffs are overblown .
Why Deere's management is right
Fortunately, there's evidence to suggest that Deere's management is right. For example, when the tariff issue hit in the summer, the spread between Brazil and U.S. soybean export prices blew up to around $100 a ton from the normal spread of a few dollars. However, the latest data from the United States Department of Agriculture (USDA) shows that the spread has closed to normal levels since the end of the 2018. In fact, the latest USDA data indicates that U.S. export prices are now higher than Brazil's.
Moreover, the drop in demand from China has been partly offset by increased demand from other countries. For example, the USDA points out that U.S. soybean export commitments (defined as outstanding sales plus accumulated exports) to China at the end of February were just 9.4 million tons, compared to 27.7 million tons a year ago. However, total commitments to the world were 39 million tons, compared to 48 million a year ago.
Meanwhile, as Norwood pointed out, "three of the four major crops are expected to be higher in the 2018-2019 marketing year than in the previous year." For reference, he's referring to corn, wheat, and cotton. In fact, Deere is forecasting that U.S. farm cash receipts will increase by a few billion to around $390 billion.
Think long-term with Deere
There's strong evidence that U.S farmers are "filling the gap," and in the long-term Deere has good growth prospects thanks to its precision agriculture solutions -- the company is also an under-appreciated play on the Internet of Things .
Deere may well be forced to cut near-term guidance due to the upheaval caused by trade conflict, but that's probably not something that long-term investors should be worried about because U.S. farmers are already opening up new trade routes for soybeans. All told, Deere remains an attractive stock for long-term investors.
10 stocks we like better than Deere & Company
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Deere & Company wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 1, 2019
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
As such, early order "programs sales momentum observably shifted in reaction to external factors such as the rise of global trade tensions," according to Norwood. However, the latest data from the United States Department of Agriculture (USDA) shows that the spread has closed to normal levels since the end of the 2018. That's the question facing potential investors in Deere (NYSE: DE) right now.
|
That said, if Deere is seeing some hesitancy in large equipment orders from farmers due to the trade conflict and upheaval in the soybean market, then it's reasonable to fear more of an impact in the future if trade friction continues. For example, the USDA points out that U.S. soybean export commitments (defined as outstanding sales plus accumulated exports) to China at the end of February were just 9.4 million tons, compared to 27.7 million tons a year ago. That's the question facing potential investors in Deere (NYSE: DE) right now.
|
That said, if Deere is seeing some hesitancy in large equipment orders from farmers due to the trade conflict and upheaval in the soybean market, then it's reasonable to fear more of an impact in the future if trade friction continues. Think long-term with Deere There's strong evidence that U.S farmers are "filling the gap," and in the long-term Deere has good growth prospects thanks to its precision agriculture solutions -- the company is also an under-appreciated play on the Internet of Things . Deere may well be forced to cut near-term guidance due to the upheaval caused by trade conflict, but that's probably not something that long-term investors should be worried about because U.S. farmers are already opening up new trade routes for soybeans.
|
That said, if Deere is seeing some hesitancy in large equipment orders from farmers due to the trade conflict and upheaval in the soybean market, then it's reasonable to fear more of an impact in the future if trade friction continues. The long view The key question is whether the impact of the trade dispute is going to be a temporary or permanent one. Deere may well be forced to cut near-term guidance due to the upheaval caused by trade conflict, but that's probably not something that long-term investors should be worried about because U.S. farmers are already opening up new trade routes for soybeans.
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d05313c7-be39-40c4-996c-4975a1522d71
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721830.0
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2019-03-21 00:00:00 UTC
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AGCO Signs Deal With Digital Agriculture Firm Solinftec
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DE
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https://www.nasdaq.com/articles/agco-signs-deal-with-digital-agriculture-firm-solinftec-2019-03-21
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nan
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nan
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AGCO CorporationAGCO recently entered into a commercial and technological partnership with a leading developer and distributor of digital agriculture solutions, Solinftec. AGCO customers will be provided direct access to Solinftec's portfolio of solutions, including soil sensors, on-board computers, telemetry networks, weather stations, proprietary algorithms and the real-time generation of actionable insights, producing agronomic efficacy and operational efficiency.
In the beginning of 2019, the new solutions will launch in Brazil for sugarcane, soybean, corn and cotton growers. Moreover, the new solutions will be rolled out for the 2020 crop cycle for soybean and corn growers in the United States.
Notably, Solinftec's offerings will complement the fleet and farm solutions, which are available through AGCO's Fuse smart farming portfolio. Fuse's smart farming includes transparent partnering model that provides flexibility to farmers according to their choices of service providers, farm management, and agronomic software and machinery.
Over the past 11 years, Solinftec has brought solutions to its clients that capture and process online and real-time data, while also focusing on improving farm's operational ecosystem. Solinftec solutions comprise various layers of hardware, software and telecommunications. In addition to these layers, it has developed a wide suite of software and algorithmic solutions to solve challenges related to specific crop and region. Solinftec has captured 60% of the sugarcane market in Brazil through these solutions.
AGCO, which is among the prominent Manufacturing - Farm Equipment industry, along with Titan International, Inc. TWI , Deere & Company DE and Lindsay Corporation LNN , has reaffirmed its net sales 2019 outlook at $9.6 billion, owing to improved sales volumes and positive pricing. It anticipates gross and operating margin to improve from the 2018 level, backed by positive impact of pricing and cost reduction. Considering these, the company expects 2019 earnings to come in at around $4.60 per share.
Additionally, AGCO expects industry demand in South America to improve in the ongoing year from the prior-year level. Supported by favorable wheat prices and crop production, farm economics are expected to improve modestly across Western Europe, leading to relatively stable demand in European markets. However, farm income in the United States remains under pressure due to lower commodity prices.
AGCO has been consistently making strategic investments to enhance and expand its product lines, upgrade system capabilities and improve factory productivity. In a bid to execute the product-development plan and meet the latest emission requirements in Brazil and Europe, the company intends to maintain its level of investment in 2019.
AGCO Corporation Price and Consensus
AGCO Corporation Price and Consensus | AGCO Corporation Quote
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 - 2017, they soared far above the market's +126.3%, reaching +181.9%.
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AGCO Corporation (AGCO): Free Stock Analysis Report
Titan International, Inc. (TWI): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Lindsay Corporation (LNN): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AGCO customers will be provided direct access to Solinftec's portfolio of solutions, including soil sensors, on-board computers, telemetry networks, weather stations, proprietary algorithms and the real-time generation of actionable insights, producing agronomic efficacy and operational efficiency. Supported by favorable wheat prices and crop production, farm economics are expected to improve modestly across Western Europe, leading to relatively stable demand in European markets. This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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AGCO, which is among the prominent Manufacturing - Farm Equipment industry, along with Titan International, Inc. TWI , Deere & Company DE and Lindsay Corporation LNN , has reaffirmed its net sales 2019 outlook at $9.6 billion, owing to improved sales volumes and positive pricing. Click to get this free report AGCO Corporation (AGCO): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Lindsay Corporation (LNN): Free Stock Analysis Report To read this article on Zacks.com click here. AGCO CorporationAGCO recently entered into a commercial and technological partnership with a leading developer and distributor of digital agriculture solutions, Solinftec.
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AGCO, which is among the prominent Manufacturing - Farm Equipment industry, along with Titan International, Inc. TWI , Deere & Company DE and Lindsay Corporation LNN , has reaffirmed its net sales 2019 outlook at $9.6 billion, owing to improved sales volumes and positive pricing. Click to get this free report AGCO Corporation (AGCO): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Lindsay Corporation (LNN): Free Stock Analysis Report To read this article on Zacks.com click here. AGCO CorporationAGCO recently entered into a commercial and technological partnership with a leading developer and distributor of digital agriculture solutions, Solinftec.
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Additionally, AGCO expects industry demand in South America to improve in the ongoing year from the prior-year level. AGCO CorporationAGCO recently entered into a commercial and technological partnership with a leading developer and distributor of digital agriculture solutions, Solinftec. AGCO customers will be provided direct access to Solinftec's portfolio of solutions, including soil sensors, on-board computers, telemetry networks, weather stations, proprietary algorithms and the real-time generation of actionable insights, producing agronomic efficacy and operational efficiency.
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d9f388f7-9019-490b-af2c-43159f4e7c5b
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721831.0
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2019-03-17 00:00:00 UTC
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Why Is Deere (DE) Down 2.6% Since Last Earnings Report?
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DE
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https://www.nasdaq.com/articles/why-is-deere-de-down-2.6-since-last-earnings-report-2019-03-17
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nan
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nan
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A month has gone by since the las t earnings report for Deere (DE). Shares have lost about 2.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Deere due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recen t earnings report in order to get a better handle on the important drivers.
Deere Earnings Miss, Revenues Beat Estimates in Q1
Deere & Company reported first-quarter fiscal 2019 (ended Jan 28, 2019) adjusted earnings of $1.54 per share, missing the Zacks Consensus Estimate of $1.80 by a margin of 14%. However, the reported figure logged an improvement of 14% from the prior-year quarter's earnings per share of $1.35. Notably, earnings improved despite the impact of material cost inflation. Further, concerns over tariffs and trade policies seem to be weighing on customer sentiment with farmers becoming cautious and subsequently delaying their equipment purchases.
Including one-time items, the company had incurred a loss of $1.66 in the prior-year quarter. There were no adjustments in the currently reported quarter.
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $6.9 billion, surging 16% year over year. Revenues beat the Zacks Consensus Estimate of $6.8 billion. Total net sales (including financial services and others) came in at $7.98 billion, up 16% year over year.
Operational Update
Cost of sales in the reported quarter advanced 16% year over year to $5.4 billion. Gross profit in the reported quarter came in at $2.55 billion, surging 16% year over year. Selling, administrative and general expenses increased 8% year over year to $764 million. Equipment operations reported operating profit of $577 million in the quarter under review compared with $419 million in the prior-year quarter.
Apart from the contribution from the Wirtgen acquisition, higher shipment volumes, price realization drove results. However, these gains were partially offset by higher production costs, higher warranty-related expenses and unfavorable effects of foreign currency exchange. Total operating profit (including financial services) increased to $769 million from $636 million reported in the year-ago quarter.
Segment Performance
Agriculture & Turf segment's sales were up 10% year over year to $4.7 billion, primarily driven by higher shipment volumes and price realization offset by unfavorable currency-translation impact and higher warranty-related expenses. Operating profit at the segment declined 10% year over year to $348 million, owing to higher production costs, improved warranty-related expenses, less favorable product mix, and higher research and development expenses. These were partially mitigated by price realization and higher shipment volumes.
Construction & Forestry sales increased 31% year over year to $2.26 billion from the prior-year quarter, aided by the Wirtgen acquisition, higher shipment volumes and price realization, somewhat offset by unfavorable foreign exchange. This segmen t report ed operating profit of $229 million, a significant improvement from the prior-year quarter figure of $32 million. The Wirtgen acquisition contributed operating profit of $14 million in the reported quarter. Apart from it, price realization, partially offset by higher production costs and a less favorable product mix, led to the improvement in profit.
Net revenues at Deere's Financial Services division totaled $855 million in the reported quarter, up 10% year over year. The segment's operating profit came in at $192 million, a decrease of 12% year over year.
Financial Update
Deere reported cash and cash equivalents of $3.6 billion at the end of the first quarter of fiscal 2019 compared with $3.9 billion at the end of the prior-year quarter. Cash utilized in operations was $1.7 billion in the first quarter, compared with $1.3 billion in the prior-year quarter. At the end of the reported quarter, long-term borrowing was approximately $28 billion, up from $26 billion at the end of prior-year quarter.
Fiscal 2019 Outlook
Deere maintained its expectation of equipment sales to rise 7% in fiscal 2019 from fiscal 2018. The Wirtgen acquisition will contribute about 1% to net sales for the fiscal. The forecast also factors an unfavorable impact of 2% for foreign-currency translation for fiscal. The company expects cost pressures to likely lessen through fiscal 2019.
For fiscal 2019, Deere anticipates net sales to increase about 7% year over year and projects net income of about $3.6 billion.
For the Agriculture & Turf segment, Deere projects industry sales of agricultural equipment in the United States and Canada to be flat to up 5% in fiscal 2019. This will be propelled by continued demand for both large and small equipment. Industry sales in the EU28 member nations are forecast to be flat as a result of drought conditions in key markets. South American industry sales of tractors and combines are projected to be flat to up 5% aided by strength in Brazil. Sales in Asia are likely to be flat to down slightly. Industry sales of turf and utility equipment in the United States and Canada are expected to be flat to up 5% for 2019.
The Construction & Forestry segment's results will benefit from the addition of a full year of Wirtgen sales compared with 10 months in fiscal 2018. The two additional months will add about 4% to the division's sales in the fiscal. The company anticipates generally positive fundamentals and economic growth worldwide. In forestry, global industry sales are expected to be up 5 to 10% mainly driven by higher demand in EU28 countries and Russia.
For the Financial Services segment, results are expected to benefit from a higher average portfolio, partially offset by less-favorable financing spreads, a higher provision for credit losses, and higher selling and administrative expenses.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Deere has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Deere has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Deere & Company (DE): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recen t earnings report in order to get a better handle on the important drivers. Further, concerns over tariffs and trade policies seem to be weighing on customer sentiment with farmers becoming cautious and subsequently delaying their equipment purchases. A month has gone by since the las t earnings report for Deere (DE).
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Deere Earnings Miss, Revenues Beat Estimates in Q1 Deere & Company reported first-quarter fiscal 2019 (ended Jan 28, 2019) adjusted earnings of $1.54 per share, missing the Zacks Consensus Estimate of $1.80 by a margin of 14%. Construction & Forestry sales increased 31% year over year to $2.26 billion from the prior-year quarter, aided by the Wirtgen acquisition, higher shipment volumes and price realization, somewhat offset by unfavorable foreign exchange. A month has gone by since the las t earnings report for Deere (DE).
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Construction & Forestry sales increased 31% year over year to $2.26 billion from the prior-year quarter, aided by the Wirtgen acquisition, higher shipment volumes and price realization, somewhat offset by unfavorable foreign exchange. Financial Update Deere reported cash and cash equivalents of $3.6 billion at the end of the first quarter of fiscal 2019 compared with $3.9 billion at the end of the prior-year quarter. A month has gone by since the las t earnings report for Deere (DE).
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A month has gone by since the las t earnings report for Deere (DE). Construction & Forestry sales increased 31% year over year to $2.26 billion from the prior-year quarter, aided by the Wirtgen acquisition, higher shipment volumes and price realization, somewhat offset by unfavorable foreign exchange. Shares have lost about 2.6% in that time frame, underperforming the S&P 500.
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b86572c6-8506-4d77-8f96-647ddaca1b59
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721832.0
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2019-03-14 00:00:00 UTC
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Why Corindus Vascular Robotics Shares Are Rising Today
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DE
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https://www.nasdaq.com/articles/why-corindus-vascular-robotics-shares-are-rising-today-2019-03-14-0
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What happened
Shares of Corindus Vascular Robotics (NYSEMKT: CVRS) , a robotic surgery company focused on vascular disease, rose as much as 14% in afternoon trading on Thursday. Shares were up about 10% as of 2:41 p.m. EST. The jump appears to be traceable to significant buying activity by one of the company's directors.
So what
Securities and Exchange Commission filings have revealed that Louis Cannon, who is listed as a director at Corindus, substantially added to his position in the company's stock this week. Cannon purchased 573,798 shares of common stock at an average price of $1.38 on Tuesday. That represents an $800,000 vote of confidence for the future of the business.
Traders appear to be bidding up shares of this beaten-down stock today in response to insider buying.
Now what
Corindus recently reported its full-year 2018 financial results. Here's how those numbers shook out:
Revenue grew 12% to $10.8 million.
The CorPath GRX install base grew 58% to 52 systems worldwide.
Volumes for cassettes -- which are the consumable portion of the CorPath GRX that are used during surgery -- rose 15% to 522.
Gross profit increased more than fivefold to $2.1 million.
Net loss expanded slightly to $35 million.
Cash balance at year-end was $23.8 million. Corindus has since completed a private placement that boosted its bank account by $19.8 million.
There are positive and negative takeaways from these numbers.
The good news is that the CorPath GRX install base is growing quickly and that gross profit is rising fast. The total net loss is relatively steady, too, which is impressive given that the company is scaling out its commercial team.
The bad news is that revenue and cassette volumes are not growing quickly at all. Low double-digit revenue growth is something that you'd expect from a mature business like Intuitive Surgical , not from a company that is still losing money and working off of a small base. I find that to be troublesome given that this company is still setting fire to tens of millions of dollars in capital each year.
Louis Cannon clearly thinks that Corindus is poised for a substantial rebound over the next couple of years, which is a possibility. But until this business starts to produce much faster revenue growth rates, I'm content to keep my time and capital focused elsewhere .
10 stocks we like better than Corindus Vascular Robotics, Inc. (DE)
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*Stock Advisor returns as of March 1, 2019
Brian Feroldi owns shares of Intuitive Surgical. The Motley Fool owns shares of and recommends Intuitive Surgical. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So what Securities and Exchange Commission filings have revealed that Louis Cannon, who is listed as a director at Corindus, substantially added to his position in the company's stock this week. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Corindus Vascular Robotics, Inc. (DE) wasn't one of them! That represents an $800,000 vote of confidence for the future of the business.
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The CorPath GRX install base grew 58% to 52 systems worldwide. So what Securities and Exchange Commission filings have revealed that Louis Cannon, who is listed as a director at Corindus, substantially added to his position in the company's stock this week. That represents an $800,000 vote of confidence for the future of the business.
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So what Securities and Exchange Commission filings have revealed that Louis Cannon, who is listed as a director at Corindus, substantially added to his position in the company's stock this week. 10 stocks we like better than Corindus Vascular Robotics, Inc. (DE) When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. That represents an $800,000 vote of confidence for the future of the business.
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So what Securities and Exchange Commission filings have revealed that Louis Cannon, who is listed as a director at Corindus, substantially added to his position in the company's stock this week. That represents an $800,000 vote of confidence for the future of the business. Traders appear to be bidding up shares of this beaten-down stock today in response to insider buying.
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c412b688-7701-4559-b9cf-2f9ca2ada892
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721833.0
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2019-03-13 00:00:00 UTC
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Notable Wednesday Option Activity: KSU, DE, REGN
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DE
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https://www.nasdaq.com/articles/notable-wednesday-option-activity-ksu-de-regn-2019-03-13
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Kansas City Southern (Symbol: KSU), where a total volume of 8,791 contracts has been traded thus far today, a contract volume which is representative of approximately 879,100 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 69.1% of KSU's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $120 strike call option expiring April 18, 2019 , with 4,263 contracts trading so far today, representing approximately 426,300 underlying shares of KSU. Below is a chart showing KSU's trailing twelve month trading history, with the $120 strike highlighted in orange:
Deere & Co. (Symbol: DE) saw options trading volume of 13,890 contracts, representing approximately 1.4 million underlying shares or approximately 57.4% of DE's average daily trading volume over the past month, of 2.4 million shares. Particularly high volume was seen for the $180 strike call option expiring March 29, 2019 , with 5,654 contracts trading so far today, representing approximately 565,400 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $180 strike highlighted in orange:
And Regeneron Pharmaceuticals, Inc. (Symbol: REGN) options are showing a volume of 3,324 contracts thus far today. That number of contracts represents approximately 332,400 underlying shares, working out to a sizeable 53.5% of REGN's average daily trading volume over the past month, of 621,175 shares. Particularly high volume was seen for the $412.50 strike put option expiring March 15, 2019 , with 283 contracts trading so far today, representing approximately 28,300 underlying shares of REGN. Below is a chart showing REGN's trailing twelve month trading history, with the $412.50 strike highlighted in orange:
For the various different available expirations for KSU options , DE options , or REGN options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $120 strike call option expiring April 18, 2019 , with 4,263 contracts trading so far today, representing approximately 426,300 underlying shares of KSU. Particularly high volume was seen for the $180 strike call option expiring March 29, 2019 , with 5,654 contracts trading so far today, representing approximately 565,400 underlying shares of DE. Particularly high volume was seen for the $412.50 strike put option expiring March 15, 2019 , with 283 contracts trading so far today, representing approximately 28,300 underlying shares of REGN.
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Below is a chart showing KSU's trailing twelve month trading history, with the $120 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 13,890 contracts, representing approximately 1.4 million underlying shares or approximately 57.4% of DE's average daily trading volume over the past month, of 2.4 million shares. Particularly high volume was seen for the $180 strike call option expiring March 29, 2019 , with 5,654 contracts trading so far today, representing approximately 565,400 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $180 strike highlighted in orange: And Regeneron Pharmaceuticals, Inc. (Symbol: REGN) options are showing a volume of 3,324 contracts thus far today.
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Kansas City Southern (Symbol: KSU), where a total volume of 8,791 contracts has been traded thus far today, a contract volume which is representative of approximately 879,100 underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing KSU's trailing twelve month trading history, with the $120 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 13,890 contracts, representing approximately 1.4 million underlying shares or approximately 57.4% of DE's average daily trading volume over the past month, of 2.4 million shares. Particularly high volume was seen for the $180 strike call option expiring March 29, 2019 , with 5,654 contracts trading so far today, representing approximately 565,400 underlying shares of DE.
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Below is a chart showing KSU's trailing twelve month trading history, with the $120 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 13,890 contracts, representing approximately 1.4 million underlying shares or approximately 57.4% of DE's average daily trading volume over the past month, of 2.4 million shares. Particularly high volume was seen for the $180 strike call option expiring March 29, 2019 , with 5,654 contracts trading so far today, representing approximately 565,400 underlying shares of DE. Particularly high volume was seen for the $412.50 strike put option expiring March 15, 2019 , with 283 contracts trading so far today, representing approximately 28,300 underlying shares of REGN.
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0f01d856-04ac-4a11-b47c-53ec0fd17221
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721834.0
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2019-03-12 00:00:00 UTC
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Corindus Vascular Robotics Inc (CVRS) Q4 2018 Earnings Conference Call Transcript
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DE
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https://www.nasdaq.com/articles/corindus-vascular-robotics-inc-cvrs-q4-2018-earnings-conference-call-transcript-2019-03-12
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nan
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Corindus Vascular Robotics Inc (NYSEMKT: CVRS)
Q4 2018 Earnings Conference Call
March 12, 2019 , 4:30 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good afternoon. My name is David, and I'll be your conference operator today. At this time I'd like to welcome everyone to the Corindus Vascular Robotics Q4 and Full Year 2018 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)
Thank you. (inaudible), Investor Relations, you may begin your conference.
Unidentified Speaker --
Thank you, David. Welcome to Corindus Vascular Robotics fourth quarter 2018 earnings call . This is (inaudible), Investor Relations for Corindus. With me on today's call are Corindus' Chief Executive Officer, Mark Toland and Chief Financial Officer, David Long. This afternoon, the Company issued a press release detailing financial results for the three months and year ended December 31, 2018. This press release and a webcast of this call can be accessed through the Investors section of the Corindus website at www.corindus.com.
Before we get started, I would like to remind everyone that any statements made on today's conference call that express beliefs, expectations, projections, forecast, anticipation or intent regarding future events, and the Company's future performance, may be considered forward-looking statements as defined by the Private Securities Litigation Reform Act. Any statements contained in this call that are not statements of historical fact should be deemed to be forward-looking statements.
These forward-looking statements including without limitation, Corindus's future financial and operational expectation, including the expected timing of commercial activities, timing of pre-clinical studies, Corindus's ability to expand this technology platform and achieve the advances necessary for telestenting and remote procedures, including in humans, Corindus's ability to expand this technology platform for use in other segments of the vascular intervention market, including neuro interventional and other more complex cardiac interventions, obtaining necessary regulatory approvals for the use on humans and marketing of its products in the United States and in other countries and anticipated collaborations are based on information available to Corindus's management as of today and involve risks and uncertainties including those described in the sections titled Risk Factors in Corindus's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and quarterly reports on Form 10-Q as well as reports on form 8-K. Such forward looking statements are not guarantees of future performance. Actual results may differ materially from those projected in forward looking statements. Corindus specifically disclaims any intent or obligation to update these forward-looking statements except as required by law.
The archived webcast of this call will be available for one year on our website corindus.com. For the benefit of those who may be listening to the replay or archived webcast, this call was held and recorded on March 12, 2019. Since then, Corindus may have made announcements related to the topics discussed. So please reference the Company's most recent press releases and SEC filings.
And with that, I'll turn the call over to Corindus's CEO, Mark Toland.
Mark J. Toland -- President and CEO
Thank you, Judy. Good afternoon, everyone, and thank you for joining us. Since our last call, Corindus has made significant progress on several important fronts. The fourth quarter of 2018 proved to be our best to date, reflecting what we believe is the beginning of an industry shift to embrace robotic intervention and indications of a longer term commitment to commercializing remote capabilities.
Let me share some highlights with you now. Revenue was $4.7 million up from $3.1 million in Q3. We installed six new CorPath GRX systems and performed one system upgrade during the quarter, bringing the total installed base up to 52 systems. We sold 522 cassettes in Q4, a 15% increase over last year, a number we expect to continue to grow as many of the new and existing robotic programs ramp up.
We've also expanded our global footprint with new system installations in India and Singapore. In addition, we received our first European order from the Clinique Pasteur in Toulouse, France.
Finally on the international front, our Class A-1 reimbursement listing was granted by the Japanese government on March 5, which will allow us to start our post-market approval trial in Japan. Our global expansion strategy is working, and we expect more purchases in 2019.
Exciting things are also happening on our research and development front. In December, we successfully completed the world's first in-human remote PCI study in India, a significant milestone for our remote robotic program. In 2018, we completed our preclinical remote work at TCT live case demonstration and all five cases for our first in-human remote PCI trial, all of which has driven significant interest from the clinical community on the future robotics and liability of robotic program now is important.
In fact, a leading US hospital recently placed an order to become a core development site for telerobotic capabilities. I'll tell you more about that shortly. And just a few weeks ago, in mid-February, we submitted for pre-market clearance of our neurovascular indication for CorPath GRX with the FDA. Clearance to treat neurovascular conditions, which could come as early as this summer, would be a significant step in transforming the current standard of care for stroke patients.
To support these activities, we strengthened our cash position through a $19.5 million (ph) private placement in Q1, with a large institutional investor and existing shareholders. The proceeds will allow us to fund ongoing growth, enable us to pursue new products and capabilities. At the same time, we remain actively engaged with Citi to advance partnership discussions to co-develop and commercialize a neurovascular robotic platform with remote capabilities.
Against this backdrop, let me begin with the robotics business. Following the TCT Conference, where robotics was at the forefront, the selling cycle for our technology accelerated with select customers. There appears to be an increased sense of urgency within the clinical community to establish robotic programs. Aurora St. Luke's Medical Center in Milwaukee, Wisconsin for instance, a very busy Top 20 research facility in the US, widely considered a thought leader and a premier provider of cardiac services, purchased a CorPath GRX system in less than 10 weeks.
We're seeing this trend hold in the first quarter as well. HCA, one of the leading providers of healthcare services in the country, purchased its first robot in a transaction that closed within 60 days. What's particularly exciting about this sale is that it opens the door to roughly 185 hospitals in the HCA network that can potentially purchase our technology. We expect to see momentum build as we move through 2019 from both a sales perspective and with regard to utilization. The University of Washington performed a 100 cases in its first five months. Our Singapore site recently launched and performed 20 cases in its first month. And OhioHealth Riverside in Columbus, Ohio is now doing both peripheral and coronary robotic procedures. In fact, using CorPath GRX, they recently became the first hospital in Ohio to perform robotic assisted treatment of peripheral artery disease.
We are currently preparing a dossier to the FDA for a next wave of automation, which we call the technIQ Series. Designed to speed up cases and increase procedural success in some of the most complex PCI cases, we're working on a digital (ph) four movements that we call smart procedural automation or (inaudible). By that, I mean we would be able to take the best physicians hands from all across the world, automate their movements and put them in a robot so that physicians anywhere in the world have the same capabilities to the use of our system.
As doctors and hospitals around the world increasingly embrace robotics, we will continue to enhance the capabilities of our technology, expanding our global footprint, and we'll be poised to build a very strong platform for growth with CorPath.
With this in mind, the big news for Corindus in Q4 was the success of the world's first ever human remote intervention performed in India using the CorPath technology. In December, internationally renowned surgeon Dr. Tejas Patel, Chairman and Chief Interventional Cardiologist of the Apex Heart Institute, successfully conducted the first in-human telerobotics coronary intervention. Notably, as part of the study we completed five successful remote procedures from a distance of 20 miles away.
This study represents the world's first percutaneous coronary intervention conducted from a remote location outside of the cath lab. The success of this study paves the way for large-scale, long-distance telerobotic procedures around the world, ultimately providing access to highly specialized and timely cardiovascular care to multiple patient populations anywhere, anytime.
Importantly, during these procedures, we validated that we have solved for any potential mechanical latency issues. There was no discernible delayed reaction from physician movement to device movement over the 20-mile distance. What we plan to do next with our remote technology ties into revenue. The value proposition of remote procedures is compelling for both doctors and hospitals. For time to treat patients like stroke victims, it would allow patient to be treated by a specialist from any hospital, what we call hub and spoke model, and the impact on the time to treat these patients, would be significantly enhanced.
In addition, remote procedures could be in the four walls of their hospital by allowing a physician to do multiple cases in a command control center like model. This enables doctors to maximize the efficiency of their day which could give him the ability to do multiple cases back to back, without any downtime. Hospitals likewise, could increase their throughput by performing more procedures in a day. At the forefront of this value proposition is Houston Methodist Hospital, which placed a significant order in Q4 to become a core development site for telerobotics. On that pathway, Houston Methodist will eventually become the first institution in the world to have telerobotic capabilities for interventional procedures across multiple disease states. This recent purchase is a notable outcome from the success of our remote clinical cases in India and confirms our belief that our technology has the potential to revolutionize the treatment of vascular disease by making specialized, timely medical care available to patients, regardless of their location.
We believe robotics applications and opportunities ultimately for remote, are extensive. In peripheral procedures for example, patients wouldn't have to travel for elective peripheral treatment, which could potentially reduce the number of amputations. For PCI, patients could be treated by the best physicians in the world, and in neurovascular, a remote therapeutic option applies to one the biggest unmet needs in healthcare, faster stroke treatment times, for best patient outcomes and recovery.
So by demonstrating a remote technology solution with the success of the world's first telerobotic interventional procedures in humans and defining a path to build revenue, we believe we have a one-two punch for success.
Turning to our neuro program, we're continuing to build a strategy to solve remote access to care and time to treat for stroke. Among stroke survivors, about two-thirds live with disabilities that could have been prevented with appropriate earlier treatment. Ultimately, our goal is to enable physicians to deliver treatment for ischemic stroke through through a hub and spoke model that extends their reach to patient populations across the globe, speeding up time to treatment by enabling physician to conduct a procedure from virtually anywhere could revolutionize patient outcomes.
As part of this goal, we submitted our dossier for 510(k) review for our neuro indication with the FDA on February 14th. If FDA clearance is granted, possibly as early as this summer, we could potentially be selling robots for neuro by year end for the treatment of aneurysms and stroke. The neuro indication has also garnered a lot of interest from the clinical community. At our headquarters in Boston, we are currently hosting one to two neuro VIP visits per week. Physicians are coming away with nothing but positive feedback around automation, procedural safety, and precision movements. They want to build and improve their own robotic skill sets in their comprehensive stroke centers. To fully realize the potential of a neurovascular solution, we're actively pursuing a partnership deal. As disclosed previously, we engaged Citigroup to help us evaluate the strong interest we have received from potential partners.
We believe that there are three elements to successful partnership, core developing, cross-selling and funding, and we will carefully consider our options to ensure that we collaborate with the right partner and in the right way. We know that hospitals are starting to budget for this in their institutions. Given the high level of clinical interest, potential FDA clearance for a neurovascular indication by the summer of this year and a potential partnership deal, we believe the neuro indication could be a 2019 event in the US and be reflected in our performance this year.
Robotics has the potential to fundamentally change the paradigm of how patients are treated. We believe we're now beginning to see a real shift in support of the technology. What's really exciting it is that by the end of this year, we expect to be able to provide physicians with the robotic tools necessary to treat the entire body, from head to toe.
There are multiple upcoming milestones this year that will continue to drive the business forward. Number one, receiving FDA clearance of CorPath GRX for neurovascular applications. Number two, submission of the next wave of CorPath GRX automation to the FDA for clearance. Number three, a planned US trial for remote intervention. Number four, completing a potential partnership to co-develop and commercialize a neurovascular robot. Number five, completing proof of principle for a remote stroke robotic system. And as we advance these initiatives, we'll continue to be prudent about how we use our cash, a record low cash burn of $2.1 million per month in Q4, reflects our commitment to actively managing our resources.
The recent financing validates our efforts as we pursue the compelling opportunities in neuro and remote robotics, with the goal of extending the reach of the highly skilled physicians to areas where access to specialized healthcare is limited and time to treatment is critical. We hope to have more to share about the potential strategic partnership with the funding component for the company. A portion of which we expect to be non-dilutive very shortly.
With that, I will turn the call over to David Long to review our financial results in more detail. David?
David Long -- Chief Financial Officer
Thanks, Mark, and good afternoon, everyone. Revenue for the three months ended December 31, 2018 totaled $4.7 million compared to $4.2 million in the same period of the prior year. The revenue increase is due primarily to increased volume and average selling price on systems sold, partially offset by lower system upgrade revenue.
During Q4, we installed six new CorPath GRX systems and performed one system upgrade, increasing the installed base of CorPath GRX to 52 units. We sold 522 cassettes in Q4, up 15% year over year. Gross profit for the fourth quarter of 2018 totaled $1.9 million compared to a gross profit of $1.2 million in the prior year period.
SG&A expenses for the fourth quarter of 2018 totaled $6.6 million, compared to $7.2 million in the fourth quarter of 2017. The decrease was primarily due to cost controls, reallocation of spending toward technology development, and timing of certain tradeshow costs. R&D expenses for the fourth quarter of 2018 totaled $2.6 million compared to $2.0 million in the fourth quarter of 2017.
The increase was primarily due to increased headcount investments, development costs and clinical spending, partially offset by research grant reimbursements. We have been actively managing our cash burn at $2.1 million per month for the quarter compared to $2.3 million per month in the prior year -- quarter (ph) and $2.9 million per month in Q4 of 2017.
We had a record low burn rate reflecting our commitment to the ongoing management of our resources. Loss from operations for the period totaled $7.3 million compared to an operating loss of $8 million in the fourth quarter of 2017. Net loss totaled $7.4 million for the fourth quarter of 2018 compared to a net loss of $8 million in the fourth quarter of 2017. Net loss per share, basic and diluted, was $0.04, unchanged from the fourth quarter of 2017. We ended the fourth quarter of 2018 with $23.8 million in cash and cash equivalents, and in Q1, we completed a $19.8 million gross private placement, providing us with additional financial flexibility toward funding our programs.
With that, I'd like to turn the call back over to Mark.
Mark J. Toland -- President and CEO
Thank you, David. Let me close with a brief anecdote that I believe illustrates where we are headed and why our technology resonates with physicians and investors alike. As I mentioned before, we recently installed a system in Singapore. The physician was in one room and the patient was in another. Our controls were in a control room that allowed the physician to do the procedure in their street clothes, and the picture noted from the physician in quotes, this is the first percutaneous coronary interventions I've ever performed in my career wearing street clothes. Our technology, we believe, holds the potential to change the future of medicine, and that's an example of that. As always, we appreciate your support, and we continue -- as we continue to expand our capabilities as the worldwide leader in vascular robotics.
I'll now open the call up for questions. Operator?
Questions and Answers:
Operator
(Operator Instructions) Your first question comes from the line of Rick Wise of Stifel. Your line is open.
Unidentified Participant -- -- Analyst
Hey, it's Drew on for Rick. Congratulations on the quarter, and I just wanted to start with Mark, you highlighted a lot of critical milestones in remote and neuro, especially being able to cover potentially all the interventions by year end. And you talked about momentum and accelerating the sales cycle. So I guess my question is, with all the positive pieces at Corindus, how will that kind of translate into commercial sales in 2019? And you previously talked about leads being kind of in that 150 range, maybe how has that changed over the past three months? And I'll just lump this last one in here too, but I mean, would you be disappointed if you were to end 2019 with less than 100 systems on the install base?
Mark J. Toland -- President and CEO
Yeah. Hey, Drew, thanks for the questions. Very good questions and we are thrilled with the milestones that we have achieved and the shortened sales cycle, which speaks to what I call the burning platform of why you need to get into robotics today, and I think that physicians are starting to see the critical need of that across multiple fronts. Obviously, we've had most of our cases performed in PCI. We've got four programs up and running for peripheral and we've got a neurovascular ahead of us here in 2019. We really see the growth of this Company driven off of the backs of of exactly that concept around telerobotics and the future of telerobotics is no longer a 10-year Star Wars discussion. It's much more near term. We've demonstrated in our pre-clinical studies. We've demonstrated in humans, and we're anticipating it driving a lot of behavior of physicians wanting to become robotic experts in their own lab, in their own hospital before they start to do remote procedures in 2020 and beyond.
So we're starting to see that transfer into sales. Obviously, we saw that in Q4 post TCT with our success of demonstrating a live case at TCT that has spurt on a lot of the clinical interest. And so, when we think about the upcoming year, we get very bullish about the growth trajectory for us, driven off of the excitement around where our robotics is going from telerobotics standpoint as well as global expansion is another key category for us that we continue to put a lot of emphasis on. We placed another system at India. We placed another -- we stood up Singapore. We just got our first order in Europe and in a key center in France. We got -- we just got approval recently in Australia. We're starting to launch in the Nordics. We are starting to launch in the UK. So we we feel like the international expansion is a big opportunity for us.
And then, we think about the indication expansion sometime this summer in the neurovascular space. We look at that as a force multiplier for growth. So we would be excited about the number of leads we have because we have previously publicly said we have 150 or so leads that we were working on. I would say that continues to grow. We've got the neurovascular leads that continue to come in. As I mentioned in the call, we do approximately one to two VIP visits per week on neurovascular to get them up to speed on our technology. And I would anticipate that continuing to grow.
As we think about the number of installations to close out 2019, I would anticipate us being close to 100 range, maybe a bit -- a little bit less than that in terms of future projections, but yeah, we closed out 2018 with 52 installations globally, but I think indication expansion, telerobotics and a greater international penetration will only help accelerate that.
Drew Ranieri -- Stifel -- Analyst
Thanks so much. And just you touched a little bit on this -- on international, but one thing that really caught our eye was the first European order. So can you just maybe go into a little bit more detail of how you see the European opportunity specifically for PCI, peripheral and neurovascular in days to come.
Mark J. Toland -- President and CEO
Yeah, as I've mentioned previously, we haven't spent a lot of time in Europe, mostly because it's just a high cost burden on organizations to go into Europe because it's multiple different laws and regulations and how you get access into capital funding, but what we've seen is, we've seen an increased interest in robotics in Europe and funding sources are coming from foundational elements where -- or you have philanthropy donating the capital and then the institution acquires the capital, start to build out the robotic programs.
And we have recently launched in -- or are launching in France right now, all right. We think that the interest level in Europe is continuing to grow for vascular robotics driven off of a lot of the work we're doing in automation, remote, as well as neurovascular. There's a significant interest in remote stroke treatment in Europe since they're a socialized medicine model, the disability cost of stroke management is a significant cost burden on their government. So they really see this as an increasing value proposition that's going to continue to grow.
Drew Ranieri -- Stifel -- Analyst
Great, thanks for the color, Mark.
Mark J. Toland -- President and CEO
Thanks, Drew.
Operator
(Operator Instructions) Your next question comes from the line of Jeffrey Cohen of Ladenburg Thalmann. Your line is open.
Jeffrey Cohen -- Ladenburg Thalmann -- Analyst
Hi, Mark and David. How are you?
Mark J. Toland -- President and CEO
Hey, Jeff.
Jeffrey Cohen -- Ladenburg Thalmann -- Analyst
Hey, I wanted to (inaudible), firstly, could you talk a little bit about the changes or differences, modifications for the neuro indication and how that progressed as far as the application to the FDA?
Mark J. Toland -- President and CEO
Sure. Good question, Jeff. So what we did in 2018 is we looked at our current system CorPath GRX, and the FDA currently looks at our approval process of are we compatible with devices or not? As you know, Jeff, we don't make anything that goes in the body. So we use currently approved FDA -- FDA-approved devices that we insert into the body for treatment and access.
So, we needed to do some testing on the neuro devices, which we did that, completed that, and we made only slight modifications. It was great experience for us because we didn't have to completely reoutfit a robot for neurovascular. We're able to do minor changes to software and minor changes to our disposable, which is called a cassette. And those two things alone, provided us a high confidence that we have compatibility with all of the market leading neurovascular devices from all the companies that like the Medtronics, the Strykers, the Penumbras of the world. So that's what we used to submit into the FDA back on February 14.
Jeffrey Cohen -- Ladenburg Thalmann -- Analyst
Okay, got it. And you spoke a little bit about the US path to telerobotics and some of the movements at the technIQ software house and how does that relate to the RoR that you had before? And what specific files or applications will you have to get through or do you perceive getting through the FDA to get this added on as far as some of the software changes and movements?
Mark J. Toland -- President and CEO
Yeah, great question. So automation, we really look at something that could speed procedures up considerably, particularly for the average operator that doesn't have the same skills as the expert. And as you know, with RoR or what we call Rotate on Retract, that was our first entree into automation, which showed a 53% reduction in wiring time for a physician. And with our submission back in late 2017 and approval subsequently after that in early 2018 for RoR. We established a -- I'll call it a pathway to regulatory approval for automation. We're essentially replicating that pathway with the additional four automated movements that we're submitting in to the FDA here soon, which we would anticipate being well received based upon what we learned in the early days of automation.
So sometime this summer, we're going to have -- we view a kind of a library of algorithms that physician can choose -- could choose to provide them with some automation or smart procedural control that would allow them to complete procedures more efficiently and effectively and faster so that they could speed up their day as well as potentially even add more cases to their day. So we're really excited about that and believe that's going to be a continued driver of utilization for us as well.
Jeffrey Cohen -- Ladenburg Thalmann -- Analyst
Okay, got it. What's the specific approval process as you submit each specific movement or software modification algorithms?
Mark J. Toland -- President and CEO
Yeah, it's a 510(k) submission and we we base it off of specs that we've already got defined within the FDA. And so it's -- should be a very smooth process for us as we're anticipating a well-received physician with the FDA on this.
Jeffrey Cohen -- Ladenburg Thalmann -- Analyst
Okay, got it, and then lastly, could you talk a little more about HCA? Maybe give us a little color on the geography of the hospital or perhaps some color on the number of physicians thus far that have been involved in the process or conducted cases?
Mark J. Toland -- President and CEO
Yeah. So we mentioned HCA and the the account that we were able to install our first robotic system in that big IDN, obviously, the biggest one in the United States. I think it represents close to 5% of the US healthcare. Very exciting hospital. It was down in Texas. And as you know, HCA is predominantly in the southeast, but also nationally, but it represents a cornerstone of what we can build on with that healthcare system. As a matter of fact, they had a call with their corporate office earlier today as we are kind of plotting out the next steps we make within that healthcare organization.
So moving in a really, really good path with a lot of these big integrated delivery networks that have multiple hospitals, and as they start to think about telerobotics, it could be a big benefit for them in a hub and spoke model when they've got hundreds of hospitals that they're trying to treat patients in and they don't have enough physicians to do it. So it can be a really compelling value proposition for these big IDNs that exist in the United States.
Jeffrey Cohen -- Ladenburg Thalmann -- Analyst
Okay, super. Thanks for taking the questions.
Mark J. Toland -- President and CEO
Thanks, Jeff.
Operator
There are no further questions at this time. I will turn the call back over to the presenters.
Mark J. Toland -- President and CEO
Great. Well, thanks for everybody who joined the call. We appreciate your interest in Corindus and we look forward to maintaining a continual update with you on future calls. Have a good evening.
Operator
This concludes today's conference call. You may now disconnect.
Duration: 35 minutes
Call participants:
Unidentified Speaker --
Mark J. Toland -- President and CEO
David Long -- Chief Financial Officer
Unidentified Participant -- -- Analyst
Drew Ranieri -- Stifel -- Analyst
Jeffrey Cohen -- Ladenburg Thalmann -- Analyst
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Aurora St. Luke's Medical Center in Milwaukee, Wisconsin for instance, a very busy Top 20 research facility in the US, widely considered a thought leader and a premier provider of cardiac services, purchased a CorPath GRX system in less than 10 weeks. Mark J. Toland -- President and CEO Yeah. Jeffrey Cohen -- Ladenburg Thalmann -- Analyst Okay, got it.
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Before we get started, I would like to remind everyone that any statements made on today's conference call that express beliefs, expectations, projections, forecast, anticipation or intent regarding future events, and the Company's future performance, may be considered forward-looking statements as defined by the Private Securities Litigation Reform Act. These forward-looking statements including without limitation, Corindus's future financial and operational expectation, including the expected timing of commercial activities, timing of pre-clinical studies, Corindus's ability to expand this technology platform and achieve the advances necessary for telestenting and remote procedures, including in humans, Corindus's ability to expand this technology platform for use in other segments of the vascular intervention market, including neuro interventional and other more complex cardiac interventions, obtaining necessary regulatory approvals for the use on humans and marketing of its products in the United States and in other countries and anticipated collaborations are based on information available to Corindus's management as of today and involve risks and uncertainties including those described in the sections titled Risk Factors in Corindus's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and quarterly reports on Form 10-Q as well as reports on form 8-K. Mark J. Toland -- President and CEO Yeah.
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These forward-looking statements including without limitation, Corindus's future financial and operational expectation, including the expected timing of commercial activities, timing of pre-clinical studies, Corindus's ability to expand this technology platform and achieve the advances necessary for telestenting and remote procedures, including in humans, Corindus's ability to expand this technology platform for use in other segments of the vascular intervention market, including neuro interventional and other more complex cardiac interventions, obtaining necessary regulatory approvals for the use on humans and marketing of its products in the United States and in other countries and anticipated collaborations are based on information available to Corindus's management as of today and involve risks and uncertainties including those described in the sections titled Risk Factors in Corindus's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and quarterly reports on Form 10-Q as well as reports on form 8-K. Mark J. Toland -- President and CEO Yeah. Mark J. Toland -- President and CEO Yeah, as I've mentioned previously, we haven't spent a lot of time in Europe, mostly because it's just a high cost burden on organizations to go into Europe because it's multiple different laws and regulations and how you get access into capital funding, but what we've seen is, we've seen an increased interest in robotics in Europe and funding sources are coming from foundational elements where -- or you have philanthropy donating the capital and then the institution acquires the capital, start to build out the robotic programs.
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Mark J. Toland -- President and CEO Yeah. Operator (Operator Instructions) Your next question comes from the line of Jeffrey Cohen of Ladenburg Thalmann. Jeffrey Cohen -- Ladenburg Thalmann -- Analyst Okay, got it.
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2019-03-06 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Walmart, Ford, Deere & Company and A. O. Smith
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-walmart-ford-deere-company-and-a.-o.-smith-2019-03-06
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For Immediate Release
Chicago, IL -March 6, 2019 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Walmart Inc.WMT , Ford Motor CompanyF , Deere & CompanyDE and A. O. Smith CorporationAOS .
Here are highlights from Tuesday's Analyst Blog:
4 Best Stocks to Gain on U.S.-China Trade Optimism
China and the United States are currently in the final stages of negotiating a trade deal. Washington is looking forward to lift almost all U.S. tariffs on $200 billion worth of Chinese goods as long as China promises to protect intellectual property rights and buy significant number of American products. At the same time, Beijing is willing to offer lower tariffs and other sanctions on American products, including farm, chemical and auto.
Talks have now progressed significantly, which could help Chinese premier Xi Jinping and U.S. President Donald Trump reach a formal agreement when they meet around Mar 27. Trump had already mentioned that the economies were "getting very, very close" to a deal, while Zhang Yesui, a spokesman for the National People's Congress, recently told reporters in Beijing that U.S. and Chinese officials "have conducted fruitful and intensive consultations and made important progress on many issues of common concern."
An end to the U.S.-China trade tussle will be a major win for President Xi and his government, who is desperately trying to counter a slowdown in the Chinese economy. It's also great news for the United States, as top American companies have raised warnings that the trade war has been affecting revenues and eating into their profit margins.
Thus, the next obvious question: what are the best stocks to buy now given that a China-U.S. trade deal is near? Strangely, it's the same companies that suffered the most when the trade war actually started off.
Walmart
The world's largest retailer Walmart Inc. should be a clear winner when the trade issues finally cool off. After all, almost three-fourths of the merchandise sold in Walmart stores are manufactured in China.
And a 10% to 15% increase in the prices of goods it imports from China could easily dent Walmart's bottom line.
Walmart currently has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current fiscal-year earnings has moved up 0.8% in the past 60 days. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Walmart flaunts a Growth Score of B and has outperformed the broader Retail - Supermarkets industry in the past three months (+3.3% vs +2.9%).
Ford Motor
Ford Motor Company is fighting an uphill battle, thanks to trade-related issues. Tariffs on materials imported from China as well as tariffs on vehicles exported to China are some of the headwinds confronting the company.
CEO James Hackett has warned that steel tariffs have impacted the company's profits by $1 billion last year. Hence, a trade deal certainly bodes well for the manufacturer of range of cars, trucks, sport utility vehicles, and electrified vehicles.
Ford currently has a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its next-quarter earnings has moved up 11.1% in the past 60 days.
The company's expected earnings growth rate for the next quarter is a solid 11.1%. The company has outperformed the broader Automotive - Domestic industry so far this year (+15.2% vs +6.9%).
Deere & Company
One of the biggest problems Deere & Company faces currently is diminished demand from the United States as the company struggles to sell products overseas market due to trade tensions.
For instance, the 25% tariff China imposed on the U.S.-grown soya beans has put an end to the crop's sale in China. As a result, domestic farmers aren't interested in buying agricultural equipment including tractors and pickers from the likes of Deere. Therefore, the company will largely benefit from a halt in the tariff war.
Deere currently has a Zacks Rank #3. The Zacks Consensus Estimate for its next-quarter earnings has moved 1.9% north in the past 60 days.
The company's expected earnings growth rate for the current year is 19.6%, more than the Manufacturing - Farm Equipment industry's projected gain of 11.2%. The company has outperformed the broader industry on a year-to-date basis (+11.2% vs +10.6%).
A. O. Smith
Rise of middle-class consumerism in China turned out to be a boom for water heater maker A. O. Smith Corporation. Better paying jobs meant growing demand for water heaters. In fact, it was the first hot water tank for some of the families.
But, fears of a prolonged trade war could hamper China's economy, resulting in relatively flat demand for water heater this year. Thus, an amicable end to the trade spat could drive A. O. Smith's shares.
The Zacks Rank #3 company's expected earnings growth rate for the next quarter and current year are a steady 7.6% and 4.2%, respectively. The company has already outperformed the broader Manufacturing - Electronics industry so far this year (+23% vs +12.1%).
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss . This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Ford Motor Company (F): Free Stock Analysis Report
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Deere & Company (DE): Free Stock Analysis Report
Walmart Inc. (WMT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Trump had already mentioned that the economies were "getting very, very close" to a deal, while Zhang Yesui, a spokesman for the National People's Congress, recently told reporters in Beijing that U.S. and Chinese officials "have conducted fruitful and intensive consultations and made important progress on many issues of common concern." It's also great news for the United States, as top American companies have raised warnings that the trade war has been affecting revenues and eating into their profit margins. Stocks recently featured in the blog include: Walmart Inc.WMT , Ford Motor CompanyF , Deere & CompanyDE and A. O. Smith CorporationAOS .
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Stocks recently featured in the blog include: Walmart Inc.WMT , Ford Motor CompanyF , Deere & CompanyDE and A. O. Smith CorporationAOS . Click to get this free report Ford Motor Company (F): Free Stock Analysis Report A. O. Smith Corporation (AOS): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report To read this article on Zacks.com click here. Here are highlights from Tuesday's Analyst Blog: 4 Best Stocks to Gain on U.S.-China Trade Optimism China and the United States are currently in the final stages of negotiating a trade deal.
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Deere & Company One of the biggest problems Deere & Company faces currently is diminished demand from the United States as the company struggles to sell products overseas market due to trade tensions. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report A. O. Smith Corporation (AOS): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Walmart Inc.WMT , Ford Motor CompanyF , Deere & CompanyDE and A. O. Smith CorporationAOS .
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Stocks recently featured in the blog include: Walmart Inc.WMT , Ford Motor CompanyF , Deere & CompanyDE and A. O. Smith CorporationAOS . Here are highlights from Tuesday's Analyst Blog: 4 Best Stocks to Gain on U.S.-China Trade Optimism China and the United States are currently in the final stages of negotiating a trade deal. Talks have now progressed significantly, which could help Chinese premier Xi Jinping and U.S. President Donald Trump reach a formal agreement when they meet around Mar 27.
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2019-03-05 00:00:00 UTC
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3 Buy-Rated Stocks Primed to Gain from a China Trade Deal
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https://www.nasdaq.com/articles/3-buy-rated-stocks-primed-to-gain-from-a-china-trade-deal-2019-03-05
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There’s a high level of optimism coming out of Washington, DC lately, which may sound odd considering the vitriolic tone of most Beltway politics. But last December, Presidents Trump and Xi agreed to a 90 day truce in the ongoing trade disputes, and late in February Trump further delayed the initiation of punitive tariffs. American and Chinese negotiating teams have stepped up, and made good use of the time given.
The White House has acknowledged the positive momentum publicly. Secretary of State Mike Pompeo said on Monday, referring to a trade deal, “We're trying to get that rectified, get that fixed, make it fair and reciprocal and I think we're on the cusp of doing that and I hope all those tariffs will go away.”
Details of the emerging deal are still not released, but the broad outlines of a US-China trade agreement are coming clear. Washington is preparing to remove or reduce punitive sanctions against Chinese products. Beijing is offering to lower tariffs and entry restrictions on certain American products: farm implements, cars, chemicals, and microchips.
While nothing is cast in stone, China’s offer can help us choose stocks that stand to gain from the final agreement. We’ll take a look at three such companies, along with their ratings from top-ranked analysts in the TipRanks database.
General Motors Company (GM – Research Report)
Among the known facets of a trade agreement, China is offering to ease protectionist restrictions around their automotive market. Under current rules, foreign car companies are required to contract with a Chinese partner company to do business in the country, and cars are subject to an import tariff of 15%.
A freer Chinese car market would be a boon to the world’s auto manufacturers. China’s automotive market is the world’s largest, and saw well over 25 million new cars sold in 2018. The largest of the Big Three, GM is well-positioned to gain should the Chinese government open up the auto market. GM’s luxury Cadillac brand sells well in China, and GM has the second-highest sales among foreign car companies in the country.
GM showed gangbusters Q4 2018 results last month, with solid beats on both revenues and EPS. Regarding the quarterly earnings, RBC Capital analyst Joseph Spak (Track Record & Ratings) says, “The details of the quarter - which were strong - should lead investors to have more confidence in 2019 EPS.” Spak’s confidence is clear from his $52 price target and 32% upside on the stock.
Itay Michaeli (Track Record & Ratings), writing from Citigroup, agrees that GM is on solid footing. He says that the company’s “long-term upside potential case has probably never been as visible as today,” and sets an aggressive $67 price target, suggesting 70% upside to GM shares.
GM has a ‘Strong Buy’ rating from the analyst consensus, based on 9 ‘buys’ and 3 ‘holds.’ The stock’s $48 average price target suggests a 22% upside when compared to the current $39 trading price.
Deere & Company (DE – Research Report)
The iconic tractor and agricultural machinery company faces a triple threat from the US-China trade tensions: first, increased costs for raw materials; second, increased tariffs and restrictions on imported products; and finally, Chinese restrictions on US bulk produce leading American farmers to cut back on harvesters and other machinery. It was a grim picture.
But now China is putting increased agricultural purchases from the US on the table, offering to import some $30 billion per year of soybeans, grains, and other farm goods – including the industrial grade machinery needed to work the fields. It directly addresses two of Deere’s major concerns on the trade issues.
The improving trade situation worked with a guardedly upbeat Q1 2019 earnings report to bring DE a boost in the markets. The earnings showed a return to profits after losses last year, tempered by missing Wall Street’s expectations on EPS. The analysts, however, see potential for DE.
Credit Suisse’s Jamie Cook (Track Record & Ratings) and Citigroup’s Timothy Thein (Track Record & Ratings) both gave ‘Buy’ ratings to DE stock, with target prices of $209 and $180. UBS analyst Steven Fisher (Track Record & Ratings) laid out the clear bullish case for DE: “It is too early to write off Deere's potential for 2019. There are three ways confidence can be improved: a trade deal with China, government support payments, and growing season dynamics.” Fisher’s price target is the most cautious of the lot, at $177.
Overall, Deere is another ‘Strong Buy’ stock, with 7 ‘buy’ ratings and 1 ‘hold.’ DE shares are trading for $165, so the average price target of $179 gives an upside potential of 8.25%.
Micron Technology, Inc. (MU – Research Report)
Hi-tech, of course, has been one of the highest charged areas of the trade dispute. From intellectual property protections to forced technology transfers from US companies to Chinese to flat-out trade disagreements on semiconductor chips, the US and China have their work cut out seeking an agreement in this sector. An agreement, however, will have a powerful impact on US chipmaker Micron, as rumors have China agreeing to import up to $200 billion in US semiconductor chips over the next six years.
Micron is the world’s fifth-largest seller of semiconductor computer chips, and saw the second highest gain in market share when it increased sales 33% between 2017 and 2018. At the end of last year, the company’s sales totaled over $31 billion.
Wall Street’s top analysts agree that the future is looking bright for MU stock. Vijay Rakesh (Track Record & Ratings), of Mizuho Securities, says, “While data center (DC) and server demand remains slow, we believe…supply issues at a major competitor has resulted in MU gaining some DC hyperscale orders…We believe potential supply bottleneck could be a tailwind for MU…” He gives the stock a target price of $45, suggesting a 9% upside potential.
From Deutsche Bank, Sidney Ho (Track Record & Ratings) agrees that Micron’s prospects are upbeat, especially as this year goes on. “Aggressive capex cuts by memory suppliers combined with a recovery in server demand should lead to a more favorable supply-demand environment by mid-2019.” Ho gives Micron a price target of $48, implying a potential upside of 16%.
Micron’s analyst consensus is a ‘Moderate Buy,’ based on 16 recent ‘buy’ ratings, 6 ‘holds,’ and 1 ‘sell.’ The stock has an average price target of $50 and a share price of $41, giving it a 22% upside potential.
Author: Michael Marcus
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But now China is putting increased agricultural purchases from the US on the table, offering to import some $30 billion per year of soybeans, grains, and other farm goods – including the industrial grade machinery needed to work the fields. From intellectual property protections to forced technology transfers from US companies to Chinese to flat-out trade disagreements on semiconductor chips, the US and China have their work cut out seeking an agreement in this sector. “Aggressive capex cuts by memory suppliers combined with a recovery in server demand should lead to a more favorable supply-demand environment by mid-2019.” Ho gives Micron a price target of $48, implying a potential upside of 16%.
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GM has a ‘Strong Buy’ rating from the analyst consensus, based on 9 ‘buys’ and 3 ‘holds.’ The stock’s $48 average price target suggests a 22% upside when compared to the current $39 trading price. Credit Suisse’s Jamie Cook (Track Record & Ratings) and Citigroup’s Timothy Thein (Track Record & Ratings) both gave ‘Buy’ ratings to DE stock, with target prices of $209 and $180. Overall, Deere is another ‘Strong Buy’ stock, with 7 ‘buy’ ratings and 1 ‘hold.’ DE shares are trading for $165, so the average price target of $179 gives an upside potential of 8.25%.
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GM has a ‘Strong Buy’ rating from the analyst consensus, based on 9 ‘buys’ and 3 ‘holds.’ The stock’s $48 average price target suggests a 22% upside when compared to the current $39 trading price. Deere & Company (DE – Research Report) The iconic tractor and agricultural machinery company faces a triple threat from the US-China trade tensions: first, increased costs for raw materials; second, increased tariffs and restrictions on imported products; and finally, Chinese restrictions on US bulk produce leading American farmers to cut back on harvesters and other machinery. Credit Suisse’s Jamie Cook (Track Record & Ratings) and Citigroup’s Timothy Thein (Track Record & Ratings) both gave ‘Buy’ ratings to DE stock, with target prices of $209 and $180.
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General Motors Company (GM – Research Report) Among the known facets of a trade agreement, China is offering to ease protectionist restrictions around their automotive market. The analysts, however, see potential for DE. There’s a high level of optimism coming out of Washington, DC lately, which may sound odd considering the vitriolic tone of most Beltway politics.
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2019-03-01 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Comcast, Deere and Exelon
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-comcast-deere-and-exelon-2019-03-01
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For Immediate Release
Chicago, IL - March 1, 2019 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Comcast CMCSA , Deere DE and Exelon EXC .
Here are highlights from Thursday's Analyst Blog:
Top Analyst Reports for Comcast, Deere and Exelon
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Comcast (CMCSA), Deere (DE) and Exelon (EXC). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Comcast 's shares have outperformed the S&P 500 in the past year, gaining +6.4% vs. +2.9%. The Zacks analyst thinks Comcast is benefiting from solid growth in residential high-speed Internet customers. Expanding Wi-Fi coverage along with innovative xFi control features is improving customer experience. The company's Xfinity Mobile is now used by more than one million customers.
Additionally, Green Book 's Best Picture Oscar win bodes well for Comcast division Universal Pictures. Further, the Sky acquisition expands Comcast's international reach. Notably, the company will enter the streaming market through NBCUniversal's upcoming service.
However, the streaming market is highly competitive and significant investment is needed to gain footprint. Hence, incremental spending on content can hurt Comcast's margin expansion. Moreover, the company continues to lose voice and video subscribers due to cord-cutting. Additionally, high debt level is a headwind.
Shares of Deere have increased +11.7% over the past six months, outperforming the S&P 500, which has declined -3.6% over the same period. Deere's first-quarter fiscal 2019 adjusted earnings and revenues rose on a year-over-year basis aided by demand growth in key markets. Earnings missed expectations while revenues beat the same.
For fiscal 2019, Deere projects net sales growth of 7% year over year and net income of $3.6 billion. The Zacks analyst thinks the company will benefit from improving construction markets and growing replacement demand for agricultural equipment. The acquisition of Wirtgen, which enhances Deere's exposure to global transportation infrastructure, will be a catalyst. Introduction of advanced technologies in its products will fuel growth.
Raw material cost inflation, elevated expenses and unfavorable foreign currency impact will hurt margins in the near term. Nevertheless, Deere remains well poised for long-term growth backed by population and urbanization growth.
Exelon 's shares have gained +30.4% in the past year, outperforming the S&P 500 which has gained +2.9% over the same period. Although Exelon's earnings per share during the fourth quarter were in line with estimates, the bottom line improved from the year-ago level. The improvement was due to new rates at PHI and higher energy efficiency earnings at ComEd.
The Zacks analyst thinks Exelon is likely to benefit from its $23-billion planned capital investment, focus on zero-emission electricity generation and cost savings. The company continues with its hedging program to manage market risks and protect the value of its generation. Strong cash flow generation capacity will help it lower debt levels and increase value of its shareholders.
However, Exelon is subject to the impact of commodity price volatility and price fluctuation in the wholesale markets. Stringent government regulation is also a cause of concern.
Other noteworthy reports we are featuring today include Monster Beverage (MNST) and Newmont (NEM).
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss . This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Exelon Corporation (EXC): Free Stock Analysis Report
Comcast Corporation (CMCSA): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere's first-quarter fiscal 2019 adjusted earnings and revenues rose on a year-over-year basis aided by demand growth in key markets. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. Stocks recently featured in the blog include: Comcast CMCSA , Deere DE and Exelon EXC .
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Here are highlights from Thursday's Analyst Blog: Top Analyst Reports for Comcast, Deere and Exelon The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Comcast (CMCSA), Deere (DE) and Exelon (EXC). Click to get this free report Exelon Corporation (EXC): Free Stock Analysis Report Comcast Corporation (CMCSA): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Here are highlights from Thursday's Analyst Blog: Top Analyst Reports for Comcast, Deere and Exelon The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Comcast (CMCSA), Deere (DE) and Exelon (EXC). Click to get this free report Exelon Corporation (EXC): Free Stock Analysis Report Comcast Corporation (CMCSA): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Here are highlights from Thursday's Analyst Blog: Top Analyst Reports for Comcast, Deere and Exelon The Zacks Research Daily presents the best research output of our analyst team. Stocks recently featured in the blog include: Comcast CMCSA , Deere DE and Exelon EXC . Today's Research Daily features new research reports on 16 major stocks, including Comcast (CMCSA), Deere (DE) and Exelon (EXC).
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721838.0
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2019-03-01 00:00:00 UTC
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Deere Bets on Favorable Demand & Acquisitions Amid Cost Woes
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https://www.nasdaq.com/articles/deere-bets-on-favorable-demand-acquisitions-amid-cost-woes-2019-03-01
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On Feb 28, we issued an updated research report on Deere & CompanyDE . The company is poised to gain from improving construction markets and growing replacement demand for agricultural equipment, acquisitions and introduction of advanced technologies in its products. However, the trade uncertainty continues to affect the buying activity of customers. Moreover, higher raw material costs and unfavorable foreign-currency is likely to affect margin performance.
Let's illustrate the factors in detail.
Upbeat End Markets to Stoke Growth
For fiscal 2019, Deere anticipates net sales to increase about 7% year over year and projects net income of about $3.6 billion. The company remains well poised to grow on the back of improving demand in agricultural and construction equipment markets.
Deere estimates Agriculture and Turf equipment sales to increase about 4% in fiscal 2019, up from the previous forecast of 3% growth. Industry sales of agricultural equipment in the United States and Canada are anticipated to be flat to up 5%. This will be backed by demand for both large and small equipment. Replacement demand also continues to drive order activity on account of the pressing need to replace older fleet and take advantage of the new technology available.
U.S. crop cash receipts, an important indicator for equipment demand, are estimated to be about $124 billion in fiscal 2019 - the highest since 2014. Further, higher corn, wheat and cotton prices will offset softness in the soybean market. Following the aid of $1.65 per bushel from the U.S. Department of Agriculture, the dynamics for soybean will also improve this year. Moreover, per the USDA's latest available projections, net farm is anticipated to increase 12% year over year in 2019 after a decline of 8% in 2018.
Deere projects global sales for Construction & Forestry equipment to rise 13% in fiscal 2019 backed by strong demand for equipment and the Wirtgen acquisition. In forestry, global industry sales are expected to be up 5% to 10% primarily driven by higher demand in EU28 countries and Russia. The segment's operating margin is projected to be about 12%. The economic environment for the construction, forestry and road building industries holds promise and continues to support elevated demand for new and used equipment.
Acquisitions Support Deere
Deere acquired the world's leading road-construction equipment maker, Wirtgen, in December 2017. The buyout significantly enhances Deere's exposure to global transportation infrastructure. Wirtgen's integration is on track. The company has updated its synergy target to EUR 125 million by 2022. It also completed the acquisition of PLA which will assist it in providing innovative, cost-effective equipment, technology, and services to customers.
Technological Advancement in Products to Provide Competitive Edge
Deere will benefit from introduction of advanced technologies in its products. The company's proprietary and foundational precision technologies such as guidance, telematics, onboard computing and digital operations center, all of which calls for up to 20 years of investment. These foundational elements serve as key enablers for its latest advanced technologies and the combination creates the most differentiated and integrated solution in the marketplace.
Moreover, Deere's efforts to expand in precision agriculture will be a game changer. In September 2017, Deere acquired Sunnyvale, CA-based Blue River Technology, a pioneer in bringing machine learning to agricultural spraying equipment. Blue River's technology has aided precision agriculture by shifting farm-management decisions from the field level to the plant level.
Impact of Trade War
The implementation of tariffs and apprehensions regarding stretched out trade talks between the United States and China have weighed on market sentiment and caused farmers to become more cautious about making major purchases. It will continue to hinder the company's results till a resolution is reached. Further, the implementation of tariffs has led to raw material cost inflation.
Few Headwinds in Fiscal 2019
Deere will be affected by elevated expenses in fiscal 2019. It expects SA&G expense to rise about 5% for the fiscal. R&D expenses are forecasted to be up 5% in 2019 owing to strategic investments in precision agriculture as well as next generation new product development programs for large agricultural product lines. Furthermore, unfavorable impact of acquisition cost and purchase accounting related to the Wirtgen buyout will dampen earnings. The company expects an unfavorable impact of 2% for foreign-currency translation for fiscal 2019.
Share Price Performance
Deere's shares have gained 15.8% over the past six months against the S&P 500's decline of 3.9%.
Zacks Rank & Stocks to Consider
Deere currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the Industrial Products sector are Mueller Industries, Inc. MLI , Alarm.com Holdings, Inc. ALRM and Albany International Corp. AIN , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Mueller Industries has an expected earnings growth rate of 2.2% for 2019.
Alarm.com has an expected earnings growth rate of 7.8% for the current year.
Albany International has an expected earnings growth rate of 44.7% for 2019.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world - and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98% , +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
Mueller Industries, Inc. (MLI): Free Stock Analysis Report
Alarm.com Holdings, Inc. (ALRM): Free Stock Analysis Report
Albany International Corporation (AIN): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company is poised to gain from improving construction markets and growing replacement demand for agricultural equipment, acquisitions and introduction of advanced technologies in its products. In September 2017, Deere acquired Sunnyvale, CA-based Blue River Technology, a pioneer in bringing machine learning to agricultural spraying equipment. On Feb 28, we issued an updated research report on Deere & CompanyDE .
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The company is poised to gain from improving construction markets and growing replacement demand for agricultural equipment, acquisitions and introduction of advanced technologies in its products. Deere projects global sales for Construction & Forestry equipment to rise 13% in fiscal 2019 backed by strong demand for equipment and the Wirtgen acquisition. Click to get this free report Deere & Company (DE): Free Stock Analysis Report Mueller Industries, Inc. (MLI): Free Stock Analysis Report Alarm.com Holdings, Inc. (ALRM): Free Stock Analysis Report Albany International Corporation (AIN): Free Stock Analysis Report To read this article on Zacks.com click here.
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The company is poised to gain from improving construction markets and growing replacement demand for agricultural equipment, acquisitions and introduction of advanced technologies in its products. Deere projects global sales for Construction & Forestry equipment to rise 13% in fiscal 2019 backed by strong demand for equipment and the Wirtgen acquisition. Click to get this free report Deere & Company (DE): Free Stock Analysis Report Mueller Industries, Inc. (MLI): Free Stock Analysis Report Alarm.com Holdings, Inc. (ALRM): Free Stock Analysis Report Albany International Corporation (AIN): Free Stock Analysis Report To read this article on Zacks.com click here.
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The company is poised to gain from improving construction markets and growing replacement demand for agricultural equipment, acquisitions and introduction of advanced technologies in its products. Deere projects global sales for Construction & Forestry equipment to rise 13% in fiscal 2019 backed by strong demand for equipment and the Wirtgen acquisition. On Feb 28, we issued an updated research report on Deere & CompanyDE .
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721839.0
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2019-03-01 00:00:00 UTC
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LRCX Named A Top Socially Responsible Dividend Stock
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https://www.nasdaq.com/articles/lrcx-named-top-socially-responsible-dividend-stock-2019-03-01
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Lam Research Corp (Symbol: LRCX) has been named a Top Socially Responsible Dividend Stock by Dividend Channel , signifying a stock with above-average ''DividendRank'' statistics including a strong 2.5% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. Environmental criteria include considerations like the environmental impact of the company's products and services, as well as the company's efficiency in terms of its use of energy and resources. Social criteria include elements such as human rights, child labor, corporate diversity, and the company's impact on society - for instance, taken into consideration would be business activities tied to weapons, gambling, tobacco, and alcohol.
According to the ETF Finder at ETF Channel , Lam Research Corp is a member of the iShares USA ESG Select ETF ( SUSA ), making up 0.24% of the underlying holdings of the fund, which owns $3,070,834 worth of LRCX shares.
The annualized dividend paid by Lam Research Corp is $4.4/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 03/19/2019. Below is a long-term dividend history chart for LRCX, which the DividendRank report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue.
LRCX operates in the Industrial Machinery & Equipment sector, among companies like Deere & Co. ( DE ), and Illinois Tool Works, Inc. ( ITW ).
Top 25 Socially Responsible Dividend Stocks - Income To Feel Good About »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Social criteria include elements such as human rights, child labor, corporate diversity, and the company's impact on society - for instance, taken into consideration would be business activities tied to weapons, gambling, tobacco, and alcohol. Below is a long-term dividend history chart for LRCX, which the DividendRank report stressed as being of key importance. LRCX operates in the Industrial Machinery & Equipment sector, among companies like Deere & Co. ( DE ), and Illinois Tool Works, Inc. ( ITW ).
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Lam Research Corp (Symbol: LRCX) has been named a Top Socially Responsible Dividend Stock by Dividend Channel , signifying a stock with above-average ''DividendRank'' statistics including a strong 2.5% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. According to the ETF Finder at ETF Channel , Lam Research Corp is a member of the iShares USA ESG Select ETF ( SUSA ), making up 0.24% of the underlying holdings of the fund, which owns $3,070,834 worth of LRCX shares. Top 25 Socially Responsible Dividend Stocks - Income To Feel Good About » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Lam Research Corp (Symbol: LRCX) has been named a Top Socially Responsible Dividend Stock by Dividend Channel , signifying a stock with above-average ''DividendRank'' statistics including a strong 2.5% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. The annualized dividend paid by Lam Research Corp is $4.4/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 03/19/2019. Top 25 Socially Responsible Dividend Stocks - Income To Feel Good About » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Environmental criteria include considerations like the environmental impact of the company's products and services, as well as the company's efficiency in terms of its use of energy and resources. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue. Top 25 Socially Responsible Dividend Stocks - Income To Feel Good About » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2019-02-28 00:00:00 UTC
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Top Analyst Reports for Comcast, Deere & Exelon
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https://www.nasdaq.com/articles/top-analyst-reports-comcast-deere-exelon-2019-02-28
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Thursday, February 28, 2019
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Comcast (CMCSA), Deere (DE) and Exelon (EXC). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Comcast 's shares have outperformed the S&P 500 in the past year, gaining +6.4% vs. +2.9%. The Zacks analyst thinks Comcast is benefiting from solid growth in residential high-speed Internet customers. Expanding Wi-Fi coverage along with innovative xFi control features is improving customer experience. The company's Xfinity Mobile is now used by more than one million customers.
Additionally, Green Book 's Best Picture Oscar win bodes well for Comcast division Universal Pictures. Further, the Sky acquisition expands Comcast's international reach. Notably, the company will enter the streaming market through NBCUniversal's upcoming service.
However, the streaming market is highly competitive and significant investment is needed to gain footprint. Hence, incremental spending on content can hurt Comcast's margin expansion. Moreover, the company continues to lose voice and video subscribers due to cord-cutting. Additionally, high debt level is a headwind.
(You can read the full research report on Comcast here >>> ).
Shares of Deere have increased +11.7% over the past six months, outperforming the S&P 500, which has declined -3.6% over the same period. Deere's first-quarter fiscal 2019 adjusted earnings and revenues rose on a year-over-year basis aided by demand growth in key markets. Earnings missed expectations while revenues beat the same.
For fiscal 2019, Deere projects net sales growth of 7% year over year and net income of $3.6 billion. The Zacks analyst thinks the company will benefit from improving construction markets and growing replacement demand for agricultural equipment. The acquisition of Wirtgen, which enhances Deere's exposure to global transportation infrastructure, will be a catalyst. Introduction of advanced technologies in its products will fuel growth.
Raw material cost inflation, elevated expenses and unfavorable foreign currency impact will hurt margins in the near term. Nevertheless, Deere remains well poised for long-term growth backed by population and urbanization growth.
(You can read the full research report on Deere here >>> ).
Exelon 's shares have gained +30.4% in the past year, outperforming the S&P 500 which has gained +2.9% over the same period. Although Exelon's earnings per share during the fourth quarter were in line with estimates, the bottom line improved from the year-ago level. The improvement was due to new rates at PHI and higher energy efficiency earnings at ComEd.
The Zacks analyst thinks Exelon is likely to benefit from its $23-billion planned capital investment, focus on zero-emission electricity generation and cost savings. The company continues with its hedging program to manage market risks and protect the value of its generation. Strong cash flow generation capacity will help it lower debt levels and increase value of its shareholders.
However, Exelon is subject to the impact of commodity price volatility and price fluctuation in the wholesale markets. Stringent government regulation is also a cause of concern.
(You can read the full research report on Exelon here >>> ).
Other noteworthy reports we are featuring today include Monster Beverage (MNST), Hormel Foods (HRL) and Newmont (NEM).
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trendsand Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
High Speed Internet Subscriber Gains Benefit Comcast (CMCSA)
Favorable Demand, Acquisitions Drive Deere (DE), Costs Ail
Regulated Investments, Cost Management Aid Exelon (EXC)
Featured Reports
Monster (MNST) Poised to Gain From Strong Energy Drinks Unit
Per the Zacks analyst, Monster Beverage sports strength at its energy drinks category, mainly driven by Monster Energy brand.
Debt Cuts, Investment in Growth Projects Aid Newmont (NEM)
The Zacks analyst is impressed with Newmont's efforts to reduce debt and improve efficiency.
BioMarin (BMRN) Focuses on Palynziq Launch & Gene Therapy
The U.S. launch of BioMarin's newest rare disease drug Palynziq's is progressing well. Its growing pipeline focus towards gene therapy agents encourages the Zacks analyst.
Project Investments Aid Entergy (ETR), Operational Risks Hurt
Per the Zacks analyst, Entergy's disciplined investments in growth projects bolsters growth prospects.
Twilio (TWLO) Rides on Product Strength, Expanding Clientele
Per the Zacks analyst, Twilio's firm focus on introducing products is leading to a robust expansion of its existing clientele and first-time deals with the new ones, thereby aiding its topline.
Customer Additions and Investment Aid Atmos Energy (ATO)
Per Zacks analyst Atmos Energy's planned $9-$10B investment in next five years, along with expansion in customer volumes and new rates will drive performance of the company.
Avis Budget (CAR) Benefits from Partnerships, Fleet Growth
The Zacks analyst believes that expansion of connected cars fleet has helped Avis Budget streamline operations and reduce costs.
New Upgrades
Chemed (CHE) Gains Ground on Strong Roto-Rooter Business
The Zacks analyst is bullish about Chemed's Roto-Rooter arm seeing consistent growth on strength in the core plumbing and drain cleaning service segments as well as solid water restoration business.
Strength in Service & Custodial Units Aid HealthEquity (HQY)
Strong growth in Service and Custodial segments boost HealthEquity. The Zacks analyst is also optimistic about solid growth in HSA (Health Savings Account) members.
Acquisitions Likely to Keep Driving Hormel Foods (HRL) Units
Per the Zacks analyst, Hormel Foods' refrigerated foods and international units are gaining from buyouts. Notably, the buyouts of Columbus and Fontanini are expected to continue fueling performance.
New Downgrades
Sluggish New Vehicle Retail Sales Weigh on AutoNation (AN)
Per the Zacks analyst, weakness in few major markets and huge availability of off-lease used vehicles lowered sales generated by AutoNation's new vehicle retail unit.
Weakness in China, Rise in Costs Hurt A. O. Smith (AOS)
Per the Zacks analyst, A. O. Smith is struggling with low sales of electric water heaters & air purifiers with high selling, general & administrative costs in China. Rise in steel prices is a concern.
Mounting Costs and Risky Loans Hurt KeyCorp (KEY) Profits
Per the Zacks analyst, increasing costs mainly due to rise in personal expenses are likely to hurt KeyCorp's bottom-line growth. Moreover, substantial exposure to real estate loans remains a concern.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Newmont Mining Corporation (NEM): Free Stock Analysis Report
Monster Beverage Corporation (MNST): Free Stock Analysis Report
Hormel Foods Corporation (HRL): Free Stock Analysis Report
Exelon Corporation (EXC): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Comcast Corporation (CMCSA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere's first-quarter fiscal 2019 adjusted earnings and revenues rose on a year-over-year basis aided by demand growth in key markets. See Latest Stocks Today >> Mark Vickery Senior Editor Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. Today's Research Daily features new research reports on 16 major stocks, including Comcast (CMCSA), Deere (DE) and Exelon (EXC).
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Today's Research Daily features new research reports on 16 major stocks, including Comcast (CMCSA), Deere (DE) and Exelon (EXC). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read High Speed Internet Subscriber Gains Benefit Comcast (CMCSA) Favorable Demand, Acquisitions Drive Deere (DE), Costs Ail Regulated Investments, Cost Management Aid Exelon (EXC) Featured Reports Monster (MNST) Poised to Gain From Strong Energy Drinks Unit Per the Zacks analyst, Monster Beverage sports strength at its energy drinks category, mainly driven by Monster Energy brand. Click to get this free report Newmont Mining Corporation (NEM): Free Stock Analysis Report Monster Beverage Corporation (MNST): Free Stock Analysis Report Hormel Foods Corporation (HRL): Free Stock Analysis Report Exelon Corporation (EXC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Comcast Corporation (CMCSA): Free Stock Analysis Report To read this article on Zacks.com click here.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read High Speed Internet Subscriber Gains Benefit Comcast (CMCSA) Favorable Demand, Acquisitions Drive Deere (DE), Costs Ail Regulated Investments, Cost Management Aid Exelon (EXC) Featured Reports Monster (MNST) Poised to Gain From Strong Energy Drinks Unit Per the Zacks analyst, Monster Beverage sports strength at its energy drinks category, mainly driven by Monster Energy brand. Click to get this free report Newmont Mining Corporation (NEM): Free Stock Analysis Report Monster Beverage Corporation (MNST): Free Stock Analysis Report Hormel Foods Corporation (HRL): Free Stock Analysis Report Exelon Corporation (EXC): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Comcast Corporation (CMCSA): Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Comcast (CMCSA), Deere (DE) and Exelon (EXC).
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read High Speed Internet Subscriber Gains Benefit Comcast (CMCSA) Favorable Demand, Acquisitions Drive Deere (DE), Costs Ail Regulated Investments, Cost Management Aid Exelon (EXC) Featured Reports Monster (MNST) Poised to Gain From Strong Energy Drinks Unit Per the Zacks analyst, Monster Beverage sports strength at its energy drinks category, mainly driven by Monster Energy brand. Today's Research Daily features new research reports on 16 major stocks, including Comcast (CMCSA), Deere (DE) and Exelon (EXC). The Zacks analyst thinks Comcast is benefiting from solid growth in residential high-speed Internet customers.
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2019-02-25 00:00:00 UTC
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Noteworthy Monday Option Activity: KSS, DE, UPS
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity-kss-de-ups-2019-02-25
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Kohl's Corp. (Symbol: KSS), where a total of 11,605 contracts have traded so far, representing approximately 1.2 million underlying shares. That amounts to about 40.9% of KSS's average daily trading volume over the past month of 2.8 million shares. Particularly high volume was seen for the $69 strike put option expiring March 15, 2019 , with 4,213 contracts trading so far today, representing approximately 421,300 underlying shares of KSS. Below is a chart showing KSS's trailing twelve month trading history, with the $69 strike highlighted in orange:
Deere & Co. (Symbol: DE) options are showing a volume of 10,060 contracts thus far today. That number of contracts represents approximately 1.0 million underlying shares, working out to a sizeable 40.6% of DE's average daily trading volume over the past month, of 2.5 million shares. Particularly high volume was seen for the $187.50 strike call option expiring March 15, 2019 , with 3,951 contracts trading so far today, representing approximately 395,100 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $187.50 strike highlighted in orange:
And United Parcel Service Inc (Symbol: UPS) saw options trading volume of 13,910 contracts, representing approximately 1.4 million underlying shares or approximately 40.5% of UPS's average daily trading volume over the past month, of 3.4 million shares. Especially high volume was seen for the $95 strike call option expiring April 18, 2019 , with 1,224 contracts trading so far today, representing approximately 122,400 underlying shares of UPS. Below is a chart showing UPS's trailing twelve month trading history, with the $95 strike highlighted in orange:
For the various different available expirations for KSS options , DE options , or UPS options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $69 strike put option expiring March 15, 2019 , with 4,213 contracts trading so far today, representing approximately 421,300 underlying shares of KSS. Particularly high volume was seen for the $187.50 strike call option expiring March 15, 2019 , with 3,951 contracts trading so far today, representing approximately 395,100 underlying shares of DE. Especially high volume was seen for the $95 strike call option expiring April 18, 2019 , with 1,224 contracts trading so far today, representing approximately 122,400 underlying shares of UPS.
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Particularly high volume was seen for the $69 strike put option expiring March 15, 2019 , with 4,213 contracts trading so far today, representing approximately 421,300 underlying shares of KSS. Below is a chart showing KSS's trailing twelve month trading history, with the $69 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 10,060 contracts thus far today. Below is a chart showing DE's trailing twelve month trading history, with the $187.50 strike highlighted in orange: And United Parcel Service Inc (Symbol: UPS) saw options trading volume of 13,910 contracts, representing approximately 1.4 million underlying shares or approximately 40.5% of UPS's average daily trading volume over the past month, of 3.4 million shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Kohl's Corp. (Symbol: KSS), where a total of 11,605 contracts have traded so far, representing approximately 1.2 million underlying shares. Particularly high volume was seen for the $187.50 strike call option expiring March 15, 2019 , with 3,951 contracts trading so far today, representing approximately 395,100 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $187.50 strike highlighted in orange: And United Parcel Service Inc (Symbol: UPS) saw options trading volume of 13,910 contracts, representing approximately 1.4 million underlying shares or approximately 40.5% of UPS's average daily trading volume over the past month, of 3.4 million shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Kohl's Corp. (Symbol: KSS), where a total of 11,605 contracts have traded so far, representing approximately 1.2 million underlying shares. Particularly high volume was seen for the $69 strike put option expiring March 15, 2019 , with 4,213 contracts trading so far today, representing approximately 421,300 underlying shares of KSS. Below is a chart showing DE's trailing twelve month trading history, with the $187.50 strike highlighted in orange: And United Parcel Service Inc (Symbol: UPS) saw options trading volume of 13,910 contracts, representing approximately 1.4 million underlying shares or approximately 40.5% of UPS's average daily trading volume over the past month, of 3.4 million shares.
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556eb89e-7b52-4245-9f1e-0ba7ed017f9c
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721842.0
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2019-02-22 00:00:00 UTC
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Near-Term Prospects for Farm Equipment Stocks Appear Bleak
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DE
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https://www.nasdaq.com/articles/near-term-prospects-for-farm-equipment-stocks-appear-bleak-2019-02-22
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nan
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nan
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The Zacks Manufacturing - Farm Equipment industry primarily comprises companies which manufacture agricultural equipment. These include tractors, combines, sprayers, harvesting equipment, hay and forage equipment, seeding and tillage equipment, and related parts.
Some of these companies also manufacture turf and utility equipment, comprising riding lawn equipment and walk-behind mowers, golf course equipment, utility vehicles, commercial mowing equipment, and garden tillers and snow throwers. While some of the companies also provide irrigation equipment.
The companies in the industry sell their equipment and related parts through independent retail dealer networks and retail outlets. The industry caters to agriculture, golf and landscape markets.
Let us take a look at the three major themes currently governing the industry:
The Manufacturing - Farm Equipment industry has been plagued with tariff and trade concerns. Tariffs imposed by Trump administration on steel and aluminum hurt manufacturers by inflating raw material costs. China had retaliated with tariffs on U.S. food and agricultural exports. This hit the industry hard, as exports account for about 20% of U.S. farm income. The trade issues weighed on farmer sentiment, leading them to delay their equipment purchases. Further, increase in fuel, chemical and fertilizer costs are weighing on the industry's margins. Nevertheless, positive developments - ongoing talks to resolve the conflict and China agreeing to make "substantial" purchases of U.S. agricultural products - are likely to bolster the industry prospects eventually.
The needs of the industry's customers are evolving, as they are now reliant on advanced technology and mechanization to run their operations. Consequently, the companies in the industry are now enhancing their precision farming capabilities - the need of the hour. Notably, these advancements use predictive analytics to generate notifications and repair instructions to minimize machine downtime, coordinate machines to execute jobs more effectively and efficiently. Initiatives to expand in the precision agriculture technology will be a game changer for the players in the industry.
The Manufacturing - Farm Equipment industry has been witnessing a downtrend over the past few years owing to the impact of low commodity prices and sluggish farm incomes which impacted spending on farm equipment. Per the United States Department of Agriculture's ("USDA") latest available projections , after a decline of 8% in 2018, net farm is anticipated to increase 12% year over year in 2019. Farm equipment demand will primarily be driven by the need to replace the aging equipment. Moreover, the current tax reforms will encourage equipment purchases. Despite weak current agricultural conditions, long-term demand for the industry's equipment will be fueled by increased global demand for food and efficient water use.
Zacks Industry Rank Indicates Dismal Prospects
The group's Zacks Industry Rank , which is basically the average of the Zacks Rank of all the member stocks, indicates gloomy prospects in the near t erm. The Manufacturing - Farm Equipment industry, which is part of the broader Industrial Products Sector, currently carries a Zacks Industry Rank #197, which places it at the bottom 23% of 256 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry's positioning in the bottom 50% of the Zacks-ranked industries is a result of negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group's earnings growth potential. In the past year, the industry's earnings estimate for the current year has gone down 1%.
Despite the bleak near-term prospects of the industry, we will present a few farm equipment stocks that one can retain given their growth prospects. But it's worth taking a look at the industry's shareholder returns and current valuation first.
Industry Lags S&P 500 and Sector on Shareholder Returns
The Manufacturing - Farm Equipment industry has underperformed the S&P 500 over the past year. While the stocks in this industry have collectively declined 5.4%, the Zacks S&P 500 rose 1.4%. Meanwhile, the Zacks Industrial Products Sector declined 8.2%.
One-Year Price Performance
Manufacturing - Farm EquipmentIndustry Valuation
Enterprise Value/EBITDA (EV/EBITDA) Ratio (F12M)
Enterprise Value/EBITDA (EV/EBITDA) Ratio (F12M)
Over the last five years, the industry has traded as high as 78.3X, as low as 9.2X with a median of 17.0X.
Bottom Line
The Manufacturing - Farm Equipment industry is currently under pressure from raw material and freight cost headwinds.However, price hikes and prudent cost management will help sustain margins. Further, USDA has declared to provide up to $12 billion relief package to U.S. farmers to protect them from the impact of trade disputes. Farm equipment demand will eventually pick up, spurred by the need to replace ageing equipment. Moreover, benefits from Precision Agriculture initiatives will help over the long haul.
None of the stocks in the Zacks Manufacturing - Farm Equipment space currently sport a Zacks Rank #1 (Strong Buy) or 2 (Buy). However, we are presenting four Zacks Ranked #3 (Hold) stocks that are well poised to grow despite the challenges. You can see the complete list of today's Zacks #1 Rank stocks here .
Deere & Company (DE): The Zacks Consensus EPS estimate for this Moline, IL-based company for fiscal 2019 reflects year-over-year growth of 20%. The company has estimated long-term earnings growth rate of 8.5%.
Price and Consensus: DE
AGCO Corporation (AGCO): This Duluth, GA-based company's Zacks Consensus Earnings Estimate for fiscal 2019 indicates year-over-year growth of 20%. The company has estimated long-term earnings growth rate of 14.4%. The company has delivered average positive earnings surprise of 59.36% in the trailing four quarters.
Price and Consensus: AGCO
Titan International, Inc.
Price and Consensus: TWI
Lindsay Corporation
Price and Consensus: LNN
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
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Titan International, Inc. (TWI): Free Stock Analysis Report
Lindsay Corporation (LNN): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
AGCO Corporation (AGCO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nevertheless, positive developments - ongoing talks to resolve the conflict and China agreeing to make "substantial" purchases of U.S. agricultural products - are likely to bolster the industry prospects eventually. Further, USDA has declared to provide up to $12 billion relief package to U.S. farmers to protect them from the impact of trade disputes. These include tractors, combines, sprayers, harvesting equipment, hay and forage equipment, seeding and tillage equipment, and related parts.
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Click to get this free report Titan International, Inc. (TWI): Free Stock Analysis Report Lindsay Corporation (LNN): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report To read this article on Zacks.com click here. These include tractors, combines, sprayers, harvesting equipment, hay and forage equipment, seeding and tillage equipment, and related parts. Some of these companies also manufacture turf and utility equipment, comprising riding lawn equipment and walk-behind mowers, golf course equipment, utility vehicles, commercial mowing equipment, and garden tillers and snow throwers.
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The Manufacturing - Farm Equipment industry, which is part of the broader Industrial Products Sector, currently carries a Zacks Industry Rank #197, which places it at the bottom 23% of 256 Zacks industries. These include tractors, combines, sprayers, harvesting equipment, hay and forage equipment, seeding and tillage equipment, and related parts. Some of these companies also manufacture turf and utility equipment, comprising riding lawn equipment and walk-behind mowers, golf course equipment, utility vehicles, commercial mowing equipment, and garden tillers and snow throwers.
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The Manufacturing - Farm Equipment industry, which is part of the broader Industrial Products Sector, currently carries a Zacks Industry Rank #197, which places it at the bottom 23% of 256 Zacks industries. These include tractors, combines, sprayers, harvesting equipment, hay and forage equipment, seeding and tillage equipment, and related parts. Some of these companies also manufacture turf and utility equipment, comprising riding lawn equipment and walk-behind mowers, golf course equipment, utility vehicles, commercial mowing equipment, and garden tillers and snow throwers.
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a2429987-d248-4faf-b024-7b3d9888c0b5
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721843.0
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2019-02-19 00:00:00 UTC
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Company News For Feb 19, 2019
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DE
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https://www.nasdaq.com/articles/company-news-for-feb-19-2019-2019-02-19
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nan
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nan
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Newell Brands Inc.'s NWL shares tanked 20.9% after the company reported fourth quarter 2018 earnings per share of $0.73, below the previous quarter's earnings of $0.75 a share
PepsiCo, Inc.'s PEP shares gained 3% after reporting fourth quarter 2018 revenue of $19,524 million, higher than the Zacks Consensus Estimate of $19,515 million
Shares of Deere & Company DE decreased 2.1% after the company reported first quarter 2019 earnings per share of $1.54, lower than the Zacks Consensus Estimate of $1.80 a share
Shares of Arista Networks, Inc. ANET rallied 9.6% after reporting fourth quarter 2018 earnings per share of $2.25, surpassing the Zacks Consensus Estimate of $2.04 a share
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Newell Brands Inc. (NWL): Free Stock Analysis Report
Arista Networks, Inc. (ANET): Free Stock Analysis Report
Pepsico, Inc. (PEP): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Newell Brands Inc.'s NWL shares tanked 20.9% after the company reported fourth quarter 2018 earnings per share of $0.73, below the previous quarter's earnings of $0.75 a share PepsiCo, Inc.'s PEP shares gained 3% after reporting fourth quarter 2018 revenue of $19,524 million, higher than the Zacks Consensus Estimate of $19,515 million Shares of Deere & Company DE decreased 2.1% after the company reported first quarter 2019 earnings per share of $1.54, lower than the Zacks Consensus Estimate of $1.80 a share Shares of Arista Networks, Inc. ANET rallied 9.6% after reporting fourth quarter 2018 earnings per share of $2.25, surpassing the Zacks Consensus Estimate of $2.04 a share Want the latest recommendations from Zacks Investment Research? Click to get this free report Newell Brands Inc. (NWL): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Newell Brands Inc.'s NWL shares tanked 20.9% after the company reported fourth quarter 2018 earnings per share of $0.73, below the previous quarter's earnings of $0.75 a share PepsiCo, Inc.'s PEP shares gained 3% after reporting fourth quarter 2018 revenue of $19,524 million, higher than the Zacks Consensus Estimate of $19,515 million Shares of Deere & Company DE decreased 2.1% after the company reported first quarter 2019 earnings per share of $1.54, lower than the Zacks Consensus Estimate of $1.80 a share Shares of Arista Networks, Inc. ANET rallied 9.6% after reporting fourth quarter 2018 earnings per share of $2.25, surpassing the Zacks Consensus Estimate of $2.04 a share Want the latest recommendations from Zacks Investment Research? Click to get this free report Newell Brands Inc. (NWL): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Newell Brands Inc.'s NWL shares tanked 20.9% after the company reported fourth quarter 2018 earnings per share of $0.73, below the previous quarter's earnings of $0.75 a share PepsiCo, Inc.'s PEP shares gained 3% after reporting fourth quarter 2018 revenue of $19,524 million, higher than the Zacks Consensus Estimate of $19,515 million Shares of Deere & Company DE decreased 2.1% after the company reported first quarter 2019 earnings per share of $1.54, lower than the Zacks Consensus Estimate of $1.80 a share Shares of Arista Networks, Inc. ANET rallied 9.6% after reporting fourth quarter 2018 earnings per share of $2.25, surpassing the Zacks Consensus Estimate of $2.04 a share Want the latest recommendations from Zacks Investment Research? Click to get this free report Newell Brands Inc. (NWL): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Newell Brands Inc.'s NWL shares tanked 20.9% after the company reported fourth quarter 2018 earnings per share of $0.73, below the previous quarter's earnings of $0.75 a share PepsiCo, Inc.'s PEP shares gained 3% after reporting fourth quarter 2018 revenue of $19,524 million, higher than the Zacks Consensus Estimate of $19,515 million Shares of Deere & Company DE decreased 2.1% after the company reported first quarter 2019 earnings per share of $1.54, lower than the Zacks Consensus Estimate of $1.80 a share Shares of Arista Networks, Inc. ANET rallied 9.6% after reporting fourth quarter 2018 earnings per share of $2.25, surpassing the Zacks Consensus Estimate of $2.04 a share Want the latest recommendations from Zacks Investment Research? Click to get this free report Newell Brands Inc. (NWL): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Today, you can download 7 Best Stocks for the Next 30 Days.
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a9e157e9-2310-4d52-b9f1-f762751f1853
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721844.0
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2019-02-15 00:00:00 UTC
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Deere (DE) Earnings Miss, Revenues Beat Estimates in Q1
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DE
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https://www.nasdaq.com/articles/deere-de-earnings-miss-revenues-beat-estimates-in-q1-2019-02-15
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nan
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Deere & CompanyDE reported first-quarter fiscal 2019 (ended Jan 28, 2019) adjusted earnings of $1.54 per share, missing the Zacks Consensus Estimate of $1.80 by a margin of 14%. However, the reported figure logged an improvement of 14% from the prior-year quarter's earnings per share of $1.35. Notably, earnings improved despite the impact of material cost inflation. Further, concerns over tariffs and trade policies seem to be weighing on customer sentiment with farmers becoming cautious and subsequently delaying their equipment purchases.
Including one-time items, the company had incurred a loss of $1.66 in the prior-year quarter. There were no adjustments in the currently reported quarter.
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $6.9 billion, surging 16% year over year. Revenues beat the Zacks Consensus Estimate of $6.8 billion. Total net sales (including financial services and others) came in at $7.98 billion, up 16% year over year.
Deere & Company Price, Consensus and EPS Surprise
Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote
Operational Update
Cost of sales in the reported quarter advanced 16% year over year to $5.4 billion. Gross profit in the reported quarter came in at $2.55 billion, surging 16% year over year. Selling, administrative and general expenses increased 8% year over year to $764 million. Equipment operations reported operating profit of $577 million in the quarter under review compared with $419 million in the prior-year quarter.
Apart from the contribution from the Wirtgen acquisition, higher shipment volumes, price realization drove results. However, these gains were partially offset by higher production costs, higher warranty-related expenses and unfavorable effects of foreign currency exchange. Total operating profit (including financial services) increased to $769 million from $636 million reported in the year-ago quarter.
Segment Performance
Agriculture & Turf segment's sales were up 10% year over year to $4.7 billion, primarily driven by higher shipment volumes and price realization offset by unfavorable currency-translation impact and higher warranty-related expenses. Operating profit at the segment declined 10% year over year to $348 million, owing to higher production costs, improved warranty-related expenses, less favorable product mix, and higher research and development expenses. These were partially mitigated by price realization and higher shipment volumes.
Construction & Forestry sales increased 31% year over year to $2.26 billion from the prior-year quarter, aided by the Wirtgen acquisition, higher shipment volumes and price realization, somewhat offset by unfavorable foreign exchange. This segmen t report ed operating profit of $229 million, a significant improvement from the prior-year quarter figure of $32 million. The Wirtgen acquisition contributed operating profit of $14 million in the reported quarter. Apart from it, price realization, partially offset by higher production costs and a less favorable product mix, led to the improvement in profit.
Net revenues at Deere's Financial Services division totaled $855 million in the reported quarter, up 10% year over year. The segment's operating profit came in at $192 million, a decrease of 12% year over year.
Financial Update
Deere reported cash and cash equivalents of $3.6 billion at the end of the first quarter of fiscal 2019 compared with $3.9 billion at the end of the prior-year quarter. Cash utilized in operations was $1.7 billion in the first quarter, compared with $1.3 billion in the prior-year quarter. At the end of the reported quarter, long-term borrowing was approximately $28 billion, up from $26 billion at the end of prior-year quarter.
Fiscal 2019 Outlook
Deere maintained its expectation of equipment sales to rise 7% in fiscal 2019 from fiscal 2018. The Wirtgen acquisition will contribute about 1% to net sales for the fiscal. The forecast also factors an unfavorable impact of 2% for foreign-currency translation for fiscal. The company expects cost pressures to likely lessen through fiscal 2019.
For fiscal 2019, Deere anticipates net sales to increase about 7% year over year and projects net income of about $3.6 billion.
For the Agriculture & Turf segment, Deere projects industry sales of agricultural equipment in the United States and Canada to be flat to up 5% in fiscal 2019. This will be propelled by continued demand for both large and small equipment. Industry sales in the EU28 member nations are forecast to be flat as a result of drought conditions in key markets. South American industry sales of tractors and combines are projected to be flat to up 5% aided by strength in Brazil. Sales in Asia are likely to be flat to down slightly. Industry sales of turf and utility equipment in the United States and Canada are expected to be flat to up 5% for 2019.
The Construction & Forestry segment's results will benefit from the addition of a full year of Wirtgen sales compared with 10 months in fiscal 2018. The two additional months will add about 4% to the division's sales in the fiscal. The company anticipates generally positive fundamentals and economic growth worldwide. In forestry, global industry sales are expected to be up 5 to 10% mainly driven by higher demand in EU28 countries and Russia.
For the Financial Services segment, results are expected to benefit from a higher average portfolio, partially offset by less-favorable financing spreads, a higher provision for credit losses, and higher selling and administrative expenses.
Share Price Performance
Shares of Deere have lost around 3% over the past year, compared with the industry 's decline of around 5%.
Zacks Rank & Key Picks
Deere currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are Axon Enterprise, Inc AAXN , Alarm.com Holdings, Inc. ALRM and EnerSys ENS . While Axon and Alarm.com currently flaunt a Zacks Rank #1 (Strong Buy), EnerSys carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Axon has an expected earnings growth rate of 14.5% for 2019. The company's shares have rallied 105.9% in the past year.
Alarm.com has an expected earnings growth rate of 7.8% for 2019. The stock has climbed 84% in a year's time.
EnerSys has an expected earnings growth rate of 9.5% for 2019. Its shares have gained 25.5% in the past year.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 - 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
Alarm.com Holdings, Inc. (ALRM): Free Stock Analysis Report
Enersys (ENS): Free Stock Analysis Report
Axon Enterprise, Inc (AAXN): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & CompanyDE reported first-quarter fiscal 2019 (ended Jan 28, 2019) adjusted earnings of $1.54 per share, missing the Zacks Consensus Estimate of $1.80 by a margin of 14%. Further, concerns over tariffs and trade policies seem to be weighing on customer sentiment with farmers becoming cautious and subsequently delaying their equipment purchases. This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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Construction & Forestry sales increased 31% year over year to $2.26 billion from the prior-year quarter, aided by the Wirtgen acquisition, higher shipment volumes and price realization, somewhat offset by unfavorable foreign exchange. Click to get this free report Deere & Company (DE): Free Stock Analysis Report Alarm.com Holdings, Inc. (ALRM): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report Axon Enterprise, Inc (AAXN): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE reported first-quarter fiscal 2019 (ended Jan 28, 2019) adjusted earnings of $1.54 per share, missing the Zacks Consensus Estimate of $1.80 by a margin of 14%.
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Deere & Company Price, Consensus and EPS Surprise Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote Operational Update Cost of sales in the reported quarter advanced 16% year over year to $5.4 billion. Construction & Forestry sales increased 31% year over year to $2.26 billion from the prior-year quarter, aided by the Wirtgen acquisition, higher shipment volumes and price realization, somewhat offset by unfavorable foreign exchange. Click to get this free report Deere & Company (DE): Free Stock Analysis Report Alarm.com Holdings, Inc. (ALRM): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report Axon Enterprise, Inc (AAXN): Free Stock Analysis Report To read this article on Zacks.com click here.
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Deere & Company Price, Consensus and EPS Surprise Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote Operational Update Cost of sales in the reported quarter advanced 16% year over year to $5.4 billion. Construction & Forestry sales increased 31% year over year to $2.26 billion from the prior-year quarter, aided by the Wirtgen acquisition, higher shipment volumes and price realization, somewhat offset by unfavorable foreign exchange. Deere & CompanyDE reported first-quarter fiscal 2019 (ended Jan 28, 2019) adjusted earnings of $1.54 per share, missing the Zacks Consensus Estimate of $1.80 by a margin of 14%.
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52d5c59d-87d7-4c33-81ef-0b889ebcc116
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721845.0
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2019-02-15 00:00:00 UTC
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Mid-Day Market Update: Crude Oil Up Over 2%; TrueCar Shares Fall Following Downbeat Earnings
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DE
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https://www.nasdaq.com/articles/mid-day-market-update-crude-oil-over-2-truecar-shares-fall-following-downbeat-earnings
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nan
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nan
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Midway through trading Friday, the Dow traded up 1.37 percent to 25,786.68 while the NASDAQ climbed 0.38 percent to 7,455.01. The S&P also rose, gaining 0.84 percent to 2,768.70.
Leading and Lagging Sectors
On Friday, the financial shares climbed 1.9 percent. Meanwhile, top gainers in the sector included Civista Bancshares Inc (NASDAQ: CIVB ) up 9 percent, and Radian Group Inc. (NYSE: RDN ) up 8 percent.
In trading on Friday, utilities shares rose by just 0.1 percent.
Top Headline
Deere & Company (NYSE: DE ) reported downbea t earnings for its first quarter, while sales exceeded estimates.
First-quarter earnings came in at $1.54 per share, versus estimates of $1.76 per share. Sales came in at $6.94 billion, versus estimates of $6.81 billion. The company cited higher material costs and customer tariff concern as weaknesses during the quarter.
Deere expects FY19 equipment sales to rise 7 percent year over year.
Equities Trading UP
Sky Solar Holdings Ltd (NASDAQ: SKYS ) shares got a boost, shooting up 138 percent to $1.34 after Hudson Solar offered to resolve a default issue by either purchasing equity in certain Sky Solar projects for $240 million or acquiring the company for $2.15-$2.25 per share.
Shares of SAExploration Holdings, Inc. (NASDAQ: SAEX ) shot up 25 percent to $4.84 after Morgan Stanley holdings raised stake in the company, from 67.3K shares to 309.04K shares.
TriNet Group, Inc. (NYSE: TNET ) shares were also up, gaining 26 percent to $62.55 after the company beat Q4 earnings estimates.
Equities Trading DOWN
Marin Software Incorporated (NASDAQ: MRIN ) shares dropped 27 percent to $4.83 after reporting fourth-quarter earnings of $(0.06), up from $(0.92) year-over-year. Sales came in at $15.825 million, down from $17.692 million year-over-year.
Shares of Newell Brands Inc. (NASDAQ: NWL ) were down 19 percent to $17.50 after the company reported downbeat Q4 sales and issued weak sales outlook.
TrueCar, Inc. (NASDAQ: TRUE ) was down, falling around 23 percent to $7.86 after the company missed Q4 earnings estimates and issued weak Q1 guidance.
Commodities
In commodity news, oil traded up 2.4 percent to $55.71 while gold traded up 0.4 percent to $1,319.10.
Silver traded up 0.46 percent Friday to $15.60, while copper rose 0.56 percent to $2.7895.
Eurozone
European shares were higher today. The eurozone's STOXX 600 rose 1.41 percent, the Spanish Ibex Index rose 1.91 percent, while Italy's FTSE MIB Index surged 1.9 percent. Meanwhile the German DAX climbed 1.89 percent, and the French CAC 40 rose 1.79 percent while U.K. shares rose 0.55 percent.
Economics
The Empire State manufacturing index increased 4.9 points to a reading of 8.8 in February. However, economists were expecting a reading of 7.6.
The import price index declined 0.5 percent in January, versus a drop of 1 percent in December. The export price index fell 0.60 percent for January.
U.S. industrial production fell 0.6 percent for January, versus economists' expectations for a 0.1 percent rise.
The University of Michigan's consumer sentiment index increased to 95.5 for February, versus a reading of 91.2 in January.
The Baker Hughes North American rig coun t report for the recent week will be released at 1:00 p.m. ET.
© 2019 Benzinga.com. Benzinga does not provide investment advice . All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Top Headline Deere & Company (NYSE: DE ) reported downbea t earnings for its first quarter, while sales exceeded estimates. Midway through trading Friday, the Dow traded up 1.37 percent to 25,786.68 while the NASDAQ climbed 0.38 percent to 7,455.01. Meanwhile, top gainers in the sector included Civista Bancshares Inc (NASDAQ: CIVB ) up 9 percent, and Radian Group Inc. (NYSE: RDN ) up 8 percent.
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Deere expects FY19 equipment sales to rise 7 percent year over year. Equities Trading UP Sky Solar Holdings Ltd (NASDAQ: SKYS ) shares got a boost, shooting up 138 percent to $1.34 after Hudson Solar offered to resolve a default issue by either purchasing equity in certain Sky Solar projects for $240 million or acquiring the company for $2.15-$2.25 per share. Midway through trading Friday, the Dow traded up 1.37 percent to 25,786.68 while the NASDAQ climbed 0.38 percent to 7,455.01.
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Equities Trading UP Sky Solar Holdings Ltd (NASDAQ: SKYS ) shares got a boost, shooting up 138 percent to $1.34 after Hudson Solar offered to resolve a default issue by either purchasing equity in certain Sky Solar projects for $240 million or acquiring the company for $2.15-$2.25 per share. The eurozone's STOXX 600 rose 1.41 percent, the Spanish Ibex Index rose 1.91 percent, while Italy's FTSE MIB Index surged 1.9 percent. Midway through trading Friday, the Dow traded up 1.37 percent to 25,786.68 while the NASDAQ climbed 0.38 percent to 7,455.01.
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Top Headline Deere & Company (NYSE: DE ) reported downbea t earnings for its first quarter, while sales exceeded estimates. Midway through trading Friday, the Dow traded up 1.37 percent to 25,786.68 while the NASDAQ climbed 0.38 percent to 7,455.01. Meanwhile, top gainers in the sector included Civista Bancshares Inc (NASDAQ: CIVB ) up 9 percent, and Radian Group Inc. (NYSE: RDN ) up 8 percent.
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796ba32e-cf65-40ec-a694-0422874a5624
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721846.0
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2019-02-15 00:00:00 UTC
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Economic and Earnings Data Deluge
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https://www.nasdaq.com/articles/economic-and-earnings-data-deluge-2019-02-15
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Import and Export Prices for the month of January have been released ahead of this morning's opening bell, with results - much as we've seen with recent economic metrics - coming up short of estimates. Import Prices month over month hit -0.5%, lower than the -0.3% expected. Subtracting petroleum prices, this figure falls further, to -0.7%. Year over year was -1.7%, in-line with projections. Export Prices, meanwhile, came in -0.6% month over month compared with estimates of -0.2%. This headline number matches December's -0.6%; year over year was -0.2%.
The Empire State survey for February also hit the tape this morning, and this number was better than expected: +8.8, compared to the 7.0 analysts had been looking for. Last month's 3.9 was unrevised. These figures track development in New York State, and as such are often more volatile than national production tallies.
Industrial Production and Capacity Utilization for January have also come out this morning, and results are again lagging where analysts had expected them to be: -0.6% on the Industrial Production headline misses the breakeven estimate, with December revised down as well, from +0.3% originally reported to +0.1% this morning. Capacity Utilization dipped from 78.7% expected and the slightly upwardly revised 78.8% the previous month to 78.2%. That December figure, however, was the hottest Cap-Ute number we'd seen in 4 full years.
Q4 Earnings Roundup
PepsiCo PEP me t earnings estimates for its Q4 bottom line at $1.49 per share. The reason this is notable is because Pepsi has a 5-year track record of (slightly) beating earnings estimates; simply meeting expectations may be considered closer to a loss than for companies that struggle to surpass projections. Shares are trading up 2% in today's pre-market, however, on positive sentiment in the company's 2019 outlook and an up-day to start overall. Revenues in Pepsi's quarter were also in-line at $19.52 billion.
Deere & Co. DE , on the other hand, has now missed earnings estimates for 4 straight quarters, putting up $1.54 per share versus $1.80 expected. Revenues, however, were slightly better than anticipated at $6.9 billion in the quarter, up 16% year over year. Shares are falling 3.4% thus far in pre-market activity, though remain in the green year-to-date.
American Axle AXL , a Zacks Rank #2 (Buy)-rated company with a Style Score (Value - Growth - Momentum) of A ahead of its Q4 earnings report, outperformed expectations on both top and bottom lines this morning. This follows a slightly disappointing Q3 report, which marked the company's only missed quarter in the past 5 years. Shares are currently up 4.75% before today's opening bell, effectively coming back from its slight dip early in the month.
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American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report
Pepsico, Inc. (PEP): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The reason this is notable is because Pepsi has a 5-year track record of (slightly) beating earnings estimates; simply meeting expectations may be considered closer to a loss than for companies that struggle to surpass projections. Deere & Co. DE , on the other hand, has now missed earnings estimates for 4 straight quarters, putting up $1.54 per share versus $1.80 expected. This headline number matches December's -0.6%; year over year was -0.2%.
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Click to get this free report American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. This headline number matches December's -0.6%; year over year was -0.2%. These figures track development in New York State, and as such are often more volatile than national production tallies.
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Industrial Production and Capacity Utilization for January have also come out this morning, and results are again lagging where analysts had expected them to be: -0.6% on the Industrial Production headline misses the breakeven estimate, with December revised down as well, from +0.3% originally reported to +0.1% this morning. Click to get this free report American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. This headline number matches December's -0.6%; year over year was -0.2%.
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This headline number matches December's -0.6%; year over year was -0.2%. These figures track development in New York State, and as such are often more volatile than national production tallies. Industrial Production and Capacity Utilization for January have also come out this morning, and results are again lagging where analysts had expected them to be: -0.6% on the Industrial Production headline misses the breakeven estimate, with December revised down as well, from +0.3% originally reported to +0.1% this morning.
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de10d35a-57ff-4a4b-80e8-8cddf5bd474e
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721847.0
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2019-02-15 00:00:00 UTC
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Deere Earnings: DE Stock Dips on Q1 Miss
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DE
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https://www.nasdaq.com/articles/deere-earnings-de-stock-dips-q1-miss-2019-02-15
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
A Deere earnings miss for the company's fiscal first quarter of 2019 has the stock heading lower on Friday.
Source: Ford8n via Flickr (Modified)
Deere (NYSE: DE ) reported earnings per share of $1.54 for its fiscal first quarter of the year. This is an increase over its earnings per share of $1.35 from the same time in 2018. However, it wasn't good news for DE stock by missing Wall Street's earnings per share estimate of $1.76 for the period.
Net income reported in the Deere earnings release for its fiscal first quarter of 2019 comes in at $498 million. This is better than the company's net loss of $535 million reported in the same period of the year prior.
Deere earnings for its fiscal first quarter of the year also includes operating income of $769 million. The manufacturer of tractors and farming equipment reported operating income of $636 million in its fiscal first quarter of the previous year.
The Deere earnings report for its fiscal first quarter of 2019 also sees revenue coming in at $6.94 billion. This is up from the company's revenue of $5.97 billion reported during the same time last year. It also comes in above analysts' revenue estimate of $6.82 billion for the quarter, but wasn't enough to keep DE stock from falling today.
10 Hot Stocks Leading the Market's Blitz Higher
"Despite unsettled conditions in some of our key markets, Deere expects to achieve strong financial results in 2019," Samuel Allen, Chairman and CEO of Deere, said in a statement . "We are confident Deere is well-positioned to achieve its financial goals and firmly believe the company remains on track for delivering solid operating performance and significant value to customers and investors in the future."
DE stock was down 2% as of Friday morning.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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The post Deere Earnings: DE Stock Dips on Q1 Miss appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Source: Ford8n via Flickr (Modified) Deere (NYSE: DE ) reported earnings per share of $1.54 for its fiscal first quarter of the year. However, it wasn't good news for DE stock by missing Wall Street's earnings per share estimate of $1.76 for the period. "We are confident Deere is well-positioned to achieve its financial goals and firmly believe the company remains on track for delivering solid operating performance and significant value to customers and investors in the future."
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips A Deere earnings miss for the company's fiscal first quarter of 2019 has the stock heading lower on Friday. Source: Ford8n via Flickr (Modified) Deere (NYSE: DE ) reported earnings per share of $1.54 for its fiscal first quarter of the year. However, it wasn't good news for DE stock by missing Wall Street's earnings per share estimate of $1.76 for the period.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips A Deere earnings miss for the company's fiscal first quarter of 2019 has the stock heading lower on Friday. Source: Ford8n via Flickr (Modified) Deere (NYSE: DE ) reported earnings per share of $1.54 for its fiscal first quarter of the year. Net income reported in the Deere earnings release for its fiscal first quarter of 2019 comes in at $498 million.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips A Deere earnings miss for the company's fiscal first quarter of 2019 has the stock heading lower on Friday. Source: Ford8n via Flickr (Modified) Deere (NYSE: DE ) reported earnings per share of $1.54 for its fiscal first quarter of the year. However, it wasn't good news for DE stock by missing Wall Street's earnings per share estimate of $1.76 for the period.
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c11ce0c3-cd48-4b4a-95a4-76d0e5e6f62a
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721848.0
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2019-02-15 00:00:00 UTC
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Mixed Bag: Econ Data & Q4 Earnings: PEP, DE, AXL
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DE
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https://www.nasdaq.com/articles/mixed-bag-econ-data-q4-earnings-pep-de-axl-2019-02-15
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Friday, February 15, 2019
Import and Export Prices for the month of January have been released ahead of this morning's opening bell, with results - much as we've seen with recent economic metrics - coming up short of estimates. Import Prices month over month hit -0.5%, lower than the -0.3% expected. Subtracting petroleum prices, this figure falls further, to -0.7%. Year over year was -1.7%, in-line with projections. Export Prices, meanwhile, came in -0.6% month over month compared with estimates of -0.2%. This headline number matches December's -0.6%; year over year was -0.2%.
The Empire State survey for February also hit the tape this morning, and this number was better than expected: +8.8, compared to the 7.0 analysts had been looking for. Last month's 3.9 was unrevised. These figures track development in New York State, and as such are often more volatile than national production tallies.
Industrial Production and Capacity Utilization for January have also come out this morning, and results are again lagging where analysts had expected them to be: -0.6% on the Industrial Production headline misses the breakeven estimate, with December revised down as well, from +0.3% originally reported to +0.1% this morning. Capacity Utilization dipped from 78.7% expected and the slightly upwardly revised 78.8% the previous month to 78.2%. That December figure, however, was the hottest Cap-Ute number we'd seen in 4 full years.
Q4 Earnings Roundup
PepsiCo PEP me t earnings estimates for its Q4 bottom line at $1.49 per share. The reason this is notable is because Pepsi has a 5-year track record of (slightly) beating earnings estimates; simply meeting expectations may be considered closer to a loss than for companies that struggle to surpass projections. Shares are trading up 2% in today's pre-market, however, on positive sentiment in the company's 2019 outlook and an up-day to start overall. Revenues in Pepsi's quarter were also in-line at $19.52 billion. For more on PEP's earnings, click here.
Deere & Co. DE , on the other hand, has now missed earnings estimates for 4 straight quarters, putting up $1.54 per share versus $1.80 expected. Revenues, however, were slightly better than anticipated at $6.9 billion in the quarter, up 16% year over year. Shares are falling 3.4% thus far in pre-market activity, though remain in the green year-to-date. For more on DE's earnings, click here.
American Axle AXL , a Zacks Rank #2 (Buy)-rated company with a Style Score (Value - Growth - Momentum) of A ahead of its Q4 earnings report, outperformed expectations on both top and bottom lines this morning. This follows a slightly disappointing Q3 report, which marked the company's only missed quarter in the past 5 years. Shares are currently up 4.75% before today's opening bell, effectively coming back from its slight dip early in the month. For more on AXL's earnings, click here.
Mark Vickery
Senior Editor
Questions or comments about this article and/or its author? Click here>>
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American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report
Pepsico, Inc. (PEP): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The reason this is notable is because Pepsi has a 5-year track record of (slightly) beating earnings estimates; simply meeting expectations may be considered closer to a loss than for companies that struggle to surpass projections. Deere & Co. DE , on the other hand, has now missed earnings estimates for 4 straight quarters, putting up $1.54 per share versus $1.80 expected. This headline number matches December's -0.6%; year over year was -0.2%.
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Click to get this free report American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. This headline number matches December's -0.6%; year over year was -0.2%. These figures track development in New York State, and as such are often more volatile than national production tallies.
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Industrial Production and Capacity Utilization for January have also come out this morning, and results are again lagging where analysts had expected them to be: -0.6% on the Industrial Production headline misses the breakeven estimate, with December revised down as well, from +0.3% originally reported to +0.1% this morning. Click to get this free report American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. This headline number matches December's -0.6%; year over year was -0.2%.
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Click to get this free report American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. This headline number matches December's -0.6%; year over year was -0.2%. These figures track development in New York State, and as such are often more volatile than national production tallies.
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721849.0
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2019-02-15 00:00:00 UTC
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Mid-Morning Market Update: Markets Open Higher; Deere Earnings Miss Expectations
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https://www.nasdaq.com/articles/mid-morning-market-update-markets-open-higher-deere-earnings-miss-expectations-2019-02-15
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Following the market opening Friday, the Dow traded up 1.11 percent to 25,722.75 while the NASDAQ climbed 0.3 percent to 7,449.05. The S&P also rose, gaining 0.72 percent to 2,765.41.
Leading and Lagging Sectors
Friday morning, the financial shares climbed 1.7 percent. Meanwhile, top gainers in the sector included Yirendai Ltd. (NYSE: YRD ) up 5 percent, and Radian Group Inc. (NYSE: RDN ) up 7 percent.
In trading on Friday, communication services shares rose by just 0.2 percent.
Top Headline
Deere & Company (NYSE: DE ) reported downbea t earnings for its first quarter, while sales exceeded estimates.
First-quarter earnings came in at $1.54 per share, versus estimates of $1.76 per share. Sales came in at $6.94 billion, versus estimates of $6.81 billion. The company cited higher material costs and customer tariff concern as weaknesses during the quarter.
Deere expects FY19 equipment sales to rise 7 percent year over year.
Equities Trading UP
Talend S.A. (NASDAQ: TLND ) shares got a boost, shooting up 20 percent to $44.93 after reporting a narrower-than-expected Q4 loss.
Shares of SAExploration Holdings, Inc. (NASDAQ: SAEX ) shot up 28 percent to $4.97 after Morgan Stanley holdings raised stake in the company, from 67.3K shares to 309.04K shares.
TriNet Group, Inc. (NYSE: TNET ) shares were also up, gaining 18 percent to $58.67 after the company beat Q4 earnings estimates.
Equities Trading DOWN
Marin Software Incorporated (NASDAQ: MRIN ) shares dropped 32 percent to $4.48 after reporting fourth-quarter earnings of $(0.06), up from $(0.92) year-over-year. Sales came in at $15.825 million, down from $17.692 million year-over-year.
Shares of AMN Healthcare Services, Inc. (NYSE: AMN ) were down 18 percent to $53.12 after the company missed Q4 sales estimates and issued weak Q1 sales guidance.
TrueCar, Inc. (NASDAQ: TRUE ) was down, falling around 22 percent to $7.99 after the company missed Q4 earnings estimates and issued weak Q1 guidance.
Commodities
In commodity news, oil traded up 1.7 percent to $55.33 while gold traded up 0.6 percent to $1,322.30.
Silver traded up 0.8 percent Friday to $15.645, while copper rose 0.5 percent to $2.788.
Eurozone
European shares were higher today. The eurozone's STOXX 600 rose 1.3 percent, the Spanish Ibex Index rose 1.9 percent, while Italy's FTSE MIB Index surged 1.7 percent. Meanwhile the German DAX climbed 1.9 percent, and the French CAC 40 rose 1.8 percent while U.K. shares rose 0.7 percent.
Economics
The Empire State manufacturing index increased 4.9 points to a reading of 8.8 in February. However, economists were expecting a reading of 7.6.
The import price index declined 0.5 percent in January, versus a drop of 1 percent in December. The export price index fell 0.60 percent for January.
U.S. industrial production fell 0.6 percent for January, versus economists' expectations for a 0.1 percent rise.
The Baker Hughes North American rig coun t report for the recent week will be released at 1:00 p.m. ET.
© 2019 Benzinga.com. Benzinga does not provide investment advice . All rights reserved.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Top Headline Deere & Company (NYSE: DE ) reported downbea t earnings for its first quarter, while sales exceeded estimates. Following the market opening Friday, the Dow traded up 1.11 percent to 25,722.75 while the NASDAQ climbed 0.3 percent to 7,449.05. Meanwhile, top gainers in the sector included Yirendai Ltd. (NYSE: YRD ) up 5 percent, and Radian Group Inc. (NYSE: RDN ) up 7 percent.
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Following the market opening Friday, the Dow traded up 1.11 percent to 25,722.75 while the NASDAQ climbed 0.3 percent to 7,449.05. Meanwhile, top gainers in the sector included Yirendai Ltd. (NYSE: YRD ) up 5 percent, and Radian Group Inc. (NYSE: RDN ) up 7 percent. Top Headline Deere & Company (NYSE: DE ) reported downbea t earnings for its first quarter, while sales exceeded estimates.
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The eurozone's STOXX 600 rose 1.3 percent, the Spanish Ibex Index rose 1.9 percent, while Italy's FTSE MIB Index surged 1.7 percent. Following the market opening Friday, the Dow traded up 1.11 percent to 25,722.75 while the NASDAQ climbed 0.3 percent to 7,449.05. Meanwhile, top gainers in the sector included Yirendai Ltd. (NYSE: YRD ) up 5 percent, and Radian Group Inc. (NYSE: RDN ) up 7 percent.
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Top Headline Deere & Company (NYSE: DE ) reported downbea t earnings for its first quarter, while sales exceeded estimates. Following the market opening Friday, the Dow traded up 1.11 percent to 25,722.75 while the NASDAQ climbed 0.3 percent to 7,449.05. Meanwhile, top gainers in the sector included Yirendai Ltd. (NYSE: YRD ) up 5 percent, and Radian Group Inc. (NYSE: RDN ) up 7 percent.
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2019-02-15 00:00:00 UTC
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US Stock Futures Trading Higher as Trade Deal Moves Forward, Shutdown Averted
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https://www.nasdaq.com/articles/us-stock-futures-trading-higher-trade-deal-moves-forward-shutdown-averted-2019-02-15
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Encouraging trade headlines were fueling solid gains across Wall Street enabling the industrial sector to overlook disappointing quarterly results from Deere ( DE ). Remarks from Chinese president Xi Jinping and US trade reps suggest trade talks are moving in the right direction and will continue next week in Washington with President Donald Trump participating. Accordingly, the Dow Jones Industrial Average was indicated to open 65 points higher at the NYSE open.
Wall Street is also cheering a deal between the White House and Democrats that will avert another partial government shutdown. Later this morning, President Trump will sign a bill to avoid a shutdown and declare national emergency to free up billions to build a border wall.
Economic data released at 8:30 am ET amplified early gains as manufacturing continues to grow while price pressures remain tame. The Empire State manufacturing index raced up to 8.8 in February from 3.9 in December, beating the consensus estimate of 7.6.
Import prices were down 0.5% last month while export prices fell 0.6% both of which were below the estimated 0.0% and +0.1% respectively.
In earnings news, John Deere ( DE ) reported mixed Q4 results, but the company's concerns about the impact of tariffs and trade policies drove the stock price sharply lower in premarket trade.
Pepsi ( PEP ) shares are higher despite a miss on non-GAAP EPS and in-line revenue. The company also issued FY19 EPS below the consensus estimate but said revenue growth is forecasted to grow 4% this year. The CEO said there were plans to close plants and layoff workers.
Finally, the chipmaker sector got a shot in the arm from better-than-expected EPS from Nvidia ( NVDA ). The stock is higher for a third straight day as a result of its FY20 outlook for flat to slightly lower revenue growth versus Wall Street forecasts for a 3.9% decline in sales.
Friday's remain economic data includes January industrial production and capacity utilization, expected to improve from the month ago levels. Also, the Univ of Michigan will announce is preliminary consumer sentiment index for February, forecasted to increase to 93.0 from 91.2 previously.
-Dow Jones Industrial up 0.37%
-S&P 500 futures up 0.42%
-Nasdaq 100 futures up 0.52%
SENTIMENT
Nikkei down 1.13%
Hang Seng down 1.87%
Shanghai Composite down 1.37%
FTSE-100 up 0.47%
DAX-30 up 1.29%
PRE-MARKET SECTOR WATCH
(+) Large cap tech: Higher
(+) Chip stocks: Higher
(+) Software stocks: Higher
(+) Hardware stocks: Higher
(+) Internet stocks: Higher
(-) Oil stocks: Lower
(+/-) Biotech stocks: Mixed
(+) Drug stocks: Higher
(+) Financial stocks: Higher
(+/-) Retail stocks: Flat
(+) Industrial stocks: Higher
(+/-) Airlines: Flat
(+) Autos: Higher
UPSIDE MOVER
(+) SAEX (+19.54%) Morgan Stanley ( MS ) increased stake
(+) TLND (+16.66%) Reported narrower-than-expected loss
(+) CERC (+14.44%) Receives US patent for neurodegenerative disease-related drug
DOWNSIDE MOVERS:
(-) MRIN (-28.48%) Q4 sales were down 11%
(-) TRUE (-18.26%) Q4 results mixed analyst estimates
(-) LOGM (-16.82%) Reported worse-than-expected Q4 results
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Encouraging trade headlines were fueling solid gains across Wall Street enabling the industrial sector to overlook disappointing quarterly results from Deere ( DE ). The stock is higher for a third straight day as a result of its FY20 outlook for flat to slightly lower revenue growth versus Wall Street forecasts for a 3.9% decline in sales. (+) SAEX (+19.54%) Morgan Stanley ( MS ) increased stake (+) TLND (+16.66%) Reported narrower-than-expected loss (+) CERC (+14.44%) Receives US patent for neurodegenerative disease-related drug
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The stock is higher for a third straight day as a result of its FY20 outlook for flat to slightly lower revenue growth versus Wall Street forecasts for a 3.9% decline in sales. Encouraging trade headlines were fueling solid gains across Wall Street enabling the industrial sector to overlook disappointing quarterly results from Deere ( DE ). Remarks from Chinese president Xi Jinping and US trade reps suggest trade talks are moving in the right direction and will continue next week in Washington with President Donald Trump participating.
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The stock is higher for a third straight day as a result of its FY20 outlook for flat to slightly lower revenue growth versus Wall Street forecasts for a 3.9% decline in sales. Encouraging trade headlines were fueling solid gains across Wall Street enabling the industrial sector to overlook disappointing quarterly results from Deere ( DE ). Remarks from Chinese president Xi Jinping and US trade reps suggest trade talks are moving in the right direction and will continue next week in Washington with President Donald Trump participating.
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In earnings news, John Deere ( DE ) reported mixed Q4 results, but the company's concerns about the impact of tariffs and trade policies drove the stock price sharply lower in premarket trade. The stock is higher for a third straight day as a result of its FY20 outlook for flat to slightly lower revenue growth versus Wall Street forecasts for a 3.9% decline in sales. Encouraging trade headlines were fueling solid gains across Wall Street enabling the industrial sector to overlook disappointing quarterly results from Deere ( DE ).
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dabf78b9-f006-4292-aeb9-d465952bc211
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721851.0
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2019-02-15 00:00:00 UTC
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US Stock Futures Propped Up by Upbeat Trade Headlines
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DE
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https://www.nasdaq.com/articles/us-stock-futures-propped-upbeat-trade-headlines-2019-02-15
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Encouraging trade headlines were fueling solid gains across Wall Street enabling the industrial sector to overlook disappointing quarterly results from Deere ( DE ). Remarks from Chinese president Xi Jinping and US trade reps suggest trade talks are moving in the right direction and will continue next week in Washington with President Donald Trump participating. Accordingly, the Dow Jones Industrial Average was indicated to open 65 points higher at the NYSE open.
Data to be released at 8:30am ET includes the February Empire State manufacturing index (est 7.6) and January import and export prices (est 0.0% and +0.1).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Encouraging trade headlines were fueling solid gains across Wall Street enabling the industrial sector to overlook disappointing quarterly results from Deere ( DE ). Remarks from Chinese president Xi Jinping and US trade reps suggest trade talks are moving in the right direction and will continue next week in Washington with President Donald Trump participating. Data to be released at 8:30am ET includes the February Empire State manufacturing index (est 7.6) and January import and export prices (est 0.0% and +0.1).
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Remarks from Chinese president Xi Jinping and US trade reps suggest trade talks are moving in the right direction and will continue next week in Washington with President Donald Trump participating. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Encouraging trade headlines were fueling solid gains across Wall Street enabling the industrial sector to overlook disappointing quarterly results from Deere ( DE ).
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Encouraging trade headlines were fueling solid gains across Wall Street enabling the industrial sector to overlook disappointing quarterly results from Deere ( DE ). Remarks from Chinese president Xi Jinping and US trade reps suggest trade talks are moving in the right direction and will continue next week in Washington with President Donald Trump participating. Data to be released at 8:30am ET includes the February Empire State manufacturing index (est 7.6) and January import and export prices (est 0.0% and +0.1).
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Encouraging trade headlines were fueling solid gains across Wall Street enabling the industrial sector to overlook disappointing quarterly results from Deere ( DE ). Remarks from Chinese president Xi Jinping and US trade reps suggest trade talks are moving in the right direction and will continue next week in Washington with President Donald Trump participating. Data to be released at 8:30am ET includes the February Empire State manufacturing index (est 7.6) and January import and export prices (est 0.0% and +0.1).
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ed8dcd88-abc2-4c4f-9188-c72698430959
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721852.0
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2019-02-15 00:00:00 UTC
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Higher costs, trade war hurt Deere's earnings
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DE
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https://www.nasdaq.com/articles/higher-costs-trade-war-hurt-deeres-earnings-2019-02-15
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By Rajesh Kumar Singh
CHICAGO, Feb 15 () - Deere & Co's first-quarter earnings on Friday missed Wall Street's estimates, hurt by higher raw materials and logistics costs as well as by slowing trade between the United States and its partners, particularly China, sending its shares lower.
The world's largest tractor manufacturer retained its 2019 earnings guidance - full-year net income is expected to be $3.6 billion with a 7 percent annual growth in equipment sales.
Deere's shares were down more than 2 percent at $159.01 in midday trade. The stock has gained over 9 percent this year, after falling about 6 percent in 2018, on hopes of a deal with Beijing.
Hoping that the trade issue would be resolved soon, Deere built up roughly $1.3 billion in inventory in the first quarter from the previous quarter.
Stephen Volkmann, a machinery analyst at Jefferies, says the inventory could weigh on the company's profits if the trade standoff prolongs and may force it to resort to cost cuts.
"If we settle the trade issue in a meaningful way, then this (earnings) forecast is conservative," he said. "But if it continues to drag on, you are going to see some risk."
The trade war is further squeezing American farmers whose incomes have been under pressure amid a global grain glut.
China bought about $12 billion worth of U.S. soy in 2017, but mostly shifted purchases to Brazil last year because of the trade fight.
While China has recently returned to buy U.S. soy, the purchases have been too small to make up for the lost sales. With supplies swelling in the domestic market, prices plunged to near decade lows last autumn.
Deere said the trade war has made farmers more cautious in making major purchases. However, it downplayed risks to the 2019 sales forecast, saying replacement demand for aging fleet was still "very healthy".
"We anticipate a resumed recovery in equipment volumes as new trade routes mature or U.S.-China trade contingencies abate," Brent Norwood, investor communications manager, said on an earnings call.
The company expects industry sales of farm and turf equipment in North America - its biggest market - to be flat to up 5 percent this year. But it trimmed the profit estimates for its agriculture and turf division, citing the slowdown in replacement demand for large farm equipment amid persistent trade uncertainties.
Not only has U.S. President Donald Trump's tariff war clouded the outlook for farm equipment demand, but it has also inflated the domestic prices for steel and aluminum used by the company in making its products.
Freight and raw materials costs are expected to remain elevated in the coming quarter. The tariffs on Chinese imports are projected to cost $100 million this year.
Deere's production costs in the first quarter shot up by 2 percentage points from last quarter. Higher manufacturing costs along with a rise in warranty-related expenses led to a 10 percent annual fall in operating profit in the first quarter at its agriculture and turf division.
Sales at its construction and forestry division were up 31 percent year on year in the latest quarter. But the company downgraded the 2019 sales growth forecast for the unit to 13 percent from 15 percent estimated earlier.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Rajesh Kumar Singh CHICAGO, Feb 15 () - Deere & Co's first-quarter earnings on Friday missed Wall Street's estimates, hurt by higher raw materials and logistics costs as well as by slowing trade between the United States and its partners, particularly China, sending its shares lower. But it trimmed the profit estimates for its agriculture and turf division, citing the slowdown in replacement demand for large farm equipment amid persistent trade uncertainties. Not only has U.S. President Donald Trump's tariff war clouded the outlook for farm equipment demand, but it has also inflated the domestic prices for steel and aluminum used by the company in making its products.
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But the company downgraded the 2019 sales growth forecast for the unit to 13 percent from 15 percent estimated earlier. By Rajesh Kumar Singh CHICAGO, Feb 15 () - Deere & Co's first-quarter earnings on Friday missed Wall Street's estimates, hurt by higher raw materials and logistics costs as well as by slowing trade between the United States and its partners, particularly China, sending its shares lower. Deere's shares were down more than 2 percent at $159.01 in midday trade.
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By Rajesh Kumar Singh CHICAGO, Feb 15 () - Deere & Co's first-quarter earnings on Friday missed Wall Street's estimates, hurt by higher raw materials and logistics costs as well as by slowing trade between the United States and its partners, particularly China, sending its shares lower. Deere's shares were down more than 2 percent at $159.01 in midday trade. The stock has gained over 9 percent this year, after falling about 6 percent in 2018, on hopes of a deal with Beijing.
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Deere said the trade war has made farmers more cautious in making major purchases. But the company downgraded the 2019 sales growth forecast for the unit to 13 percent from 15 percent estimated earlier. By Rajesh Kumar Singh CHICAGO, Feb 15 () - Deere & Co's first-quarter earnings on Friday missed Wall Street's estimates, hurt by higher raw materials and logistics costs as well as by slowing trade between the United States and its partners, particularly China, sending its shares lower.
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73ac30d4-963f-4680-84c6-f5f37996da7c
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721853.0
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2019-02-15 00:00:00 UTC
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Earnings Reaction History: Deere & Company, 30.0% Follow-Through Indicator, 5.2% Sensitive
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DE
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https://www.nasdaq.com/articles/earnings-reaction-history-deere-company-300-follow-through-indicator-52-sensitive-2019-02
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Expected Earnings Release: 02/15/2019, Premarket
Avg. Extended-Hours Dollar Volume: $25,402,650
Deere & Company ( DE ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement. Historical earnings event related premarket and after-hours trading activity in DE indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close.
Last 12 Qtrs Positive Only Price Reactions
Percent of time added to extended-hours gains: 25%
Average next regular session additional gain: 0.2%
Over the prior three fiscal years (12 quarters), when shares of DE rose in the extended-hours session in reaction to its earnings announcement, history shows that 25.0% of the time (1 event) the stock posted additional gains in the following regular session by an average of 0.2%.
Last 12 Qtrs Negative Only Price Reactions
Percent of time added to extended-hours losses: 50%
Average next regular session additional loss: 1.5%
Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 50.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 1.5% by the following regular session close.
Data provided by the MT Pro service at MTNewswires.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 25% Average next regular session additional gain: 0.2% Over the prior three fiscal years (12 quarters), when shares of DE rose in the extended-hours session in reaction to its earnings announcement, history shows that 25.0% of the time (1 event) the stock posted additional gains in the following regular session by an average of 0.2%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 50% Average next regular session additional loss: 1.5% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 50.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 1.5% by the following regular session close.
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Historical earnings event related premarket and after-hours trading activity in DE indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 25% Average next regular session additional gain: 0.2% Over the prior three fiscal years (12 quarters), when shares of DE rose in the extended-hours session in reaction to its earnings announcement, history shows that 25.0% of the time (1 event) the stock posted additional gains in the following regular session by an average of 0.2%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 50% Average next regular session additional loss: 1.5% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 50.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 1.5% by the following regular session close.
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Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 25% Average next regular session additional gain: 0.2% Over the prior three fiscal years (12 quarters), when shares of DE rose in the extended-hours session in reaction to its earnings announcement, history shows that 25.0% of the time (1 event) the stock posted additional gains in the following regular session by an average of 0.2%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 50% Average next regular session additional loss: 1.5% Over that same historical period, when shares of DE dropped in the extended-hours in reaction to its earnings announcement, history shows that 50.0% of the time (3 events) the stock dropped further, adding to the extended-hours losses by an average of 1.5% by the following regular session close. Extended-Hours Dollar Volume: $25,402,650 Deere & Company ( DE ) is due to issue its quarterly earnings report in the upcoming extended-hours session.
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Extended-Hours Dollar Volume: $25,402,650 Deere & Company ( DE ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement. Historical earnings event related premarket and after-hours trading activity in DE indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close.
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b1b189b0-db92-47ff-8b21-6c0c7363bfdb
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721854.0
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2019-02-15 00:00:00 UTC
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Deere's Q1 earnings miss Wall Street's estimates
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DE
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https://www.nasdaq.com/articles/deeres-q1-earnings-miss-wall-streets-estimates-2019-02-15
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nan
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nan
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CHICAGO, Feb 15 () - U.S. tractor maker Deere & Co.'s first-quarter earnings on Friday missed Wall Street's estimates, hurt by higher raw materials and logistics costs as well as by slowing trade between the United States and its partners, particularly China.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
CHICAGO, Feb 15 () - U.S. tractor maker Deere & Co.'s first-quarter earnings on Friday missed Wall Street's estimates, hurt by higher raw materials and logistics costs as well as by slowing trade between the United States and its partners, particularly China. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CHICAGO, Feb 15 () - U.S. tractor maker Deere & Co.'s first-quarter earnings on Friday missed Wall Street's estimates, hurt by higher raw materials and logistics costs as well as by slowing trade between the United States and its partners, particularly China. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CHICAGO, Feb 15 () - U.S. tractor maker Deere & Co.'s first-quarter earnings on Friday missed Wall Street's estimates, hurt by higher raw materials and logistics costs as well as by slowing trade between the United States and its partners, particularly China. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CHICAGO, Feb 15 () - U.S. tractor maker Deere & Co.'s first-quarter earnings on Friday missed Wall Street's estimates, hurt by higher raw materials and logistics costs as well as by slowing trade between the United States and its partners, particularly China. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2c6a3ff0-6523-4c15-b337-43535d43d99a
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721855.0
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2019-02-15 00:00:00 UTC
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6 Top Stocks to Trade Tuesday, Including Canopy Growth
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DE
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https://www.nasdaq.com/articles/6-top-stocks-to-trade-tuesday-including-canopy-growth-2019-02-15
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Dow Jones Industrial Average jumped more than 1% while the Nasdaq Composite struggled to stay above breakeven on Friday, finishing 61 basis points higher, as markets head into a three-day weekend. (That's right, don't forget to keep your screens off on Monday, unless you just want to get in a little extra chart studying.) Speaking of which, here are the five top stocks to trades for when the markets reopen Tuesday:
Deere (DE)
Click to Enlarge Shares of Deere (NYSE: DE ) came under slight pressure Friday, falling just 2.1% despite missing on earnings expectations and beating on revenue estimates. With shares hovering right near $165 resistance, Deere would've needed a strong quarter to launch its stock into breakout mode.
Now pulling back, we have to see where support comes into play. Short of Friday marking the short-term low, a test of the 50-day seems likely.
If we get a broader market correction - and perhaps some trade-war worries - we could get DE stock down into this $145 to $148 area. That puts uptrend support, and the 200-day moving average, into play.
7 Financial Stocks With Accelerating Growth
That would give investors a low-risk long opportunity should they find DE attractive.
Nvidia (NVDA)
Click to Enlarge Shares of Nvidia (NASDAQ: NVDA ) were up big in after-hours trading Thursday evening. The company's earnings results and guidance gave bulls confidence, running shares up over $170. That was a key level in the stock though - and one we outlined earlier this week .
With shares up just over 2% now, confidence isn't all that high and the move isn't all that impressive as NVDA fades off its highs. Bulls want to see to the stock stay over the 21-day moving average now. Below and the 50-day is on the table and possibly a test of uptrend support down below $140.
If the 21-day holds, a run up to $174 is possible. Above that and $200 becomes a possibility again.
Canopy Growth (CGC)
Click to Enlarge Like Nvidia, the modest post-earnings rally in Canopy Growth (NYSE: CGC ) isn't exactly inspiring the bullish spirits on Wall Street. Shares continue to hold up over this $45 to $46 level, as well as uptrend support and the 21-day moving average.
So long as that's the case, CGC can technically move higher. If it closes above $50, it could trigger a move up to the prior highs near $60. Below the 21-day moving average, though, and Canopy Growth stock may need some time to reset.
Applied Materials (AMAT)
Click to Enlarge A rally from sub-$30 to more than $40 per share right into the 200-day moving average put bulls in a poor risk-reward situation with Applied Materials (NASDAQ: AMAT ). Particularly with the company reporting earnings.
Despite a top and bottom line beat , AMAT stock pulled back after somewhat disappointing guidance. That said, shares are bouncing nicely off the 21-day moving average. Considering the run-up prior to earnings, this price action isn't all that bad.
Aggressive bulls can buy now and use a close below the 21-day as their stop. Conservative bulls can buy on a potential breakout over the 200-day moving average.
Bears have a play too. If they didn't like the quarter and don't like the stock, they can consider shorting AMAT with a stop-loss on a close over the 200-day. More conservative bears can wait for a break of the 21-day.
If they get it, they can look to ride AMAT down to the 50-day moving average.
Newell (NWL) and XPO Logistics (XPO)
Click to Enlarge Newell Brands (NYSE: NWL ) (top) beat on earnings but missed on revenue estimates for the fourth quarter. Making matters worse, guidance disappointed.
In all, the report sent shares reeling, down more than 20% Friday. As such, NWL stock remains a no-touch. Its plunge below $18 thrusts it into no man's land and puts the $15 lows on the table.
This one remains a disaster, just like XPO Logistics (NYSE: XPO ), below.
A top and bottom line earnings miss sent XPO spiraling lower Friday, falling more than 12%.
While XPO is rallying off the lows, it's in no man's land, too. Like Newell, its 52-week lows are on the table of possibilities, and it's hard to have much trust in this name until it can get above its 21- and 50-day moving averages.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell . As of this writing, Bret Kenwell is long NVDA.
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The post 6 Top Stocks to Trade Tuesday, Including Canopy Growth appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With shares hovering right near $165 resistance, Deere would've needed a strong quarter to launch its stock into breakout mode. 7 Financial Stocks With Accelerating Growth That would give investors a low-risk long opportunity should they find DE attractive. Speaking of which, here are the five top stocks to trades for when the markets reopen Tuesday: Deere (DE) Click to Enlarge Shares of Deere (NYSE: DE ) came under slight pressure Friday, falling just 2.1% despite missing on earnings expectations and beating on revenue estimates.
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Speaking of which, here are the five top stocks to trades for when the markets reopen Tuesday: Deere (DE) Click to Enlarge Shares of Deere (NYSE: DE ) came under slight pressure Friday, falling just 2.1% despite missing on earnings expectations and beating on revenue estimates. Despite a top and bottom line beat , AMAT stock pulled back after somewhat disappointing guidance. With shares hovering right near $165 resistance, Deere would've needed a strong quarter to launch its stock into breakout mode.
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Speaking of which, here are the five top stocks to trades for when the markets reopen Tuesday: Deere (DE) Click to Enlarge Shares of Deere (NYSE: DE ) came under slight pressure Friday, falling just 2.1% despite missing on earnings expectations and beating on revenue estimates. 7 Strong Buy Stocks With Over 20% Upside 7 Reasons Stock Buybacks Should Be Illegal Compare Brokers The post 6 Top Stocks to Trade Tuesday, Including Canopy Growth appeared first on InvestorPlace . With shares hovering right near $165 resistance, Deere would've needed a strong quarter to launch its stock into breakout mode.
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Speaking of which, here are the five top stocks to trades for when the markets reopen Tuesday: Deere (DE) Click to Enlarge Shares of Deere (NYSE: DE ) came under slight pressure Friday, falling just 2.1% despite missing on earnings expectations and beating on revenue estimates. If they didn't like the quarter and don't like the stock, they can consider shorting AMAT with a stop-loss on a close over the 200-day. With shares hovering right near $165 resistance, Deere would've needed a strong quarter to launch its stock into breakout mode.
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2019-02-15 00:00:00 UTC
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Deere & Co (DE) Q1 2019 Earnings Conference Call Transcript
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https://www.nasdaq.com/articles/deere-co-de-q1-2019-earnings-conference-call-transcript-2019-02-15
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Deere & Co (NYSE: DE)
Q1 2019 Earnings Conference Call
Feb. 15, 2019 , 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning and welcome to the Deere & Company First Quarter Earnings Conference Call. (Operator Instructions). I would now like to turn the call over to Mr. Josh Jepsen, Director of Investor Relations. Thank you. You may begin.
Josh Jepsen -- Director, Investor Relations
Hello. Also on the call today are Raj Kalathur, our Chief Financial Officer; Cory Reed, President of Deere Financial; Ryan Campbell, Deputy Financial Officer and Corporate Controller; and Brent Norwood, Manager Investor Communications.
Today we'll take a closer look at Deere's first quarter earnings then spend some time talking about our markets and our current outlook for fiscal 2019. After that, we'll respond to your questions. Please note that slides are available to complement the call this morning. They can be accessed on our website at www.johndeere.com/earnings.
First a reminder, this call is being broadcast live on the Internet and recorded for future transmission and use by Deere & Company. Any other use recording or transmission of any portion of this copyrighted broadcast without the expressed written consent of Deere is strictly prohibited.
Participants in the call including the Q&A session agree that their likeness and remarks in all media may be stored and used as part of the earnings call . This call includes forward-looking statements concerning the company's plans and projections for the future that are subject to important risks and uncertainties.
Additional information concerning factors that could cause actual results to differ materially is contained in the company's most recent Form 8-K and periodic reports filed with the Securities and Exchange Commission. This call may include financial measures that are not in conformance with accounting principles generally accepted in the United States, GAAP. Additional information concerning these measures including reconciliations to comparable GAAP measures is included in the release and posted on our website at www.johndeere.com/earnings under Quarterly Earnings and Events. Brent?
Brent Norwood -- Manager, Investor Communications
John Deere completed the first quarter with solid contributions from both our equipment operations and financial services group. Top line results reflect continued demand growth in key markets while profitability was negatively impacted by higher cost for raw materials and logistics. Despite inflationary cost pressures, the company made solid progress advancing critical investments in technology and innovative new product programs.
In agricultural markets, replacement demand continued to drive sales activity; albeit at a slower pace through our early order programs, while construction equipment sales benefited from stable construction investment and a healthy order book.
Now let's take a closer look at our first quarter results beginning on slide 3. Net sales and revenue were up 15% to $7.98 billion. Net income attributable to Deere & Company was $498 million or $1.54 per diluted share. On slide 4 total worldwide equipment operations net sales were up 16% to $6.94 billion.
Price realization in the quarter was positive by 5 points. Currency translation was negative by 3 points. The impact of Wirtgen was 7 points due to its inclusion for the entire quarter in 2019 compared to only one month in 2018.
Turning to a review of our individual businesses starting with Agriculture & Turf on Slide 5. Net sales were up 10% in the quarter-over-quarter comparison, primarily driven by higher shipment volumes and price realization, partially offset by the negative impact of currency and higher warranty-related expenses.
Operating profit was $348 million down 10% from the same quarter last year as the benefits of positive price realization and higher shipment volumes were offset by increased production costs, higher warranty expenses less favorable product mix and a step-up in R&D expense.
With regards to the higher production costs, it's important to note that our steel contracts operate on a 3 to 6 month lag. Additionally, while overall supply chain bottlenecks are down significantly, we are still experiencing pockets of tightness, requiring elevated levels of premium freight expenses. And we anticipate these issues to extend into the third quarter.
Before we review the industry sales outlook, let's look at fundamentals affecting the ag business. On slide 6, corn stocks-to-use ratio is expected to decline in response to demand outpacing supply driven by higher feed usage for the year. Wheat stocks-to-use ratio is projected to decline in the 2018 2019 season.
While demand has remained steady production has decreased in response to normalized yields and drought conditions in parts of Europe and Australia. Conversely soybeans stocks-to-use ratio is forecasted to build in response to higher-than-expected yields in the U.S. and the ongoing trade dispute between the U.S. and China.
Over the last nine months there has been much uncertainty as to how trade flow would readjust to accommodate displaced U.S. exports to China. The latest USDA data indicates an additional 10 million metric tons of U.S. soybeans were exported to non-China destinations, including the EU, Middle East and Southeast Asia as trade flow patterns continue to readjust.
Slide 7 outlines U.S. principal crop cash receipts, an important indicator for equipment demand. 2019 principal crop cash receipts are estimated to be about $124 billion, slightly higher than 2018 and the highest since 2014. In fact, this was the fifth highest on record reflecting high yields and improved prices for most commodities.
It's important to note that prices for three of the four major crops are expected to be higher in the 2018-2019 marketing year than in the previous year. Corn wheat and cotton prices have helped offset softness in the soybean market.
However, when including the USDA aid of $1.65 per bushel, soybean economics are better this year than last, for many farmers. Even with improved economics on account of the USDA aid, U.S. farmer sentiment remains fluid and continues to erode the longer trade uncertainty persists. And while farmers appreciated and benefited from the temporary USDA aid, nearly all prefer a permanent free-market solution.
By region, our 2019 ag and turf industry outlooks are summarized on slide 8. Industry sales in the U.S. and Canada are forecast to be flat to up 5% for 2019. Even though the underlying fundamentals remained solid in many areas, uncertainty has weighed on farmer sentiment throughout the year.
During our early order programs sales momentum observably shifted in reaction to external factors such as the rise of global trade pensions. And while the fundamentals of replacement demand remained intact the market uncertainty has resulted in some U.S. farmers temporarily pausing equipment investment decisions.
Conclusion of our 2019 combine early order program resulted in orders down single digits from 2018 with results varied between the U.S. and Canada. In the U.S. orders still held flat compared to 2018, illustrating the resiliency of replacement demand despite market uncertainty. Meanwhile, Canadian orders were down as a result of the late harvest and unfavorable movements in FX.
While 2019 remains relatively consistent with 2018 volumes, it's important to reiterate the ongoing factors driving replacement demand. Farm equipment fleets continue to age out and technology is rapidly advancing operational efficiencies on the farm. As such, we anticipate a resumed recovery in equipment volumes as new trade routes mature or U.S.-China trade tensions abate.
For our small ag segment, compact tractors show a strong order book for 2019 driven by a healthy U.S. economy and GDP growth. This is helping to offset softness for our livestock and dairy customers, although the order bank for utility tractors and round balers has been solid.
Moving on to the EU 28, the industry outlook is forecast to be flat in 2019 where strength in the Western and Central markets is offsetting weather-related challenges in the Northeast.
In South America industry sales of tractors and combines are projected to be flat to up 5% for the year with strength in Brazil balanced by slowness in Argentina on account of high inflation and political uncertainty.
Farmer sentiment remains quite positive in Brazil which had a very strong first quarter. Farm margins in the region continued to be supportive of equipment demand despite dry weather conditions during the first crop of the season.
Shifting to Asia, industry sales are expected to be flat to slightly down as key growth markets slow modestly.
Lastly, industry retail sales of turf and utility equipment in the U.S. and Canada are projected to be flat to up 5% in 2019 based on solid economic factors that support continued consumer confidence.
Putting this all together on Slide 9. Fiscal year 2019 Deere sales of worldwide Ag & Turf equipment are now forecast to be up approximately 4% which includes a negative currency impact of about two points. Furthermore, we anticipate sales in 2019 to mirror a similar quarterly seasonality as 2018. The Ag & Turf's division margins is forecast to be approximately 12%.
Now, let's focus on Construction & Forestry on Slide 10. Net sales for the quarter of $2.26 billion were up 31% compared with last year, driven by strong demand for Construction & Forestry equipment as well as by the acquisition of Wirtgen which contributed 24% of the positive improvement.
First quarter operating profit was $229 million largely benefiting from positive net price realization and the Wirtgen acquisition, partially offset by higher production costs and a less favorable product mix. C&F operating margins were 10.1% for the quarter.
Moving to Slide 11, the economic environment for construction, forestry, and road building industries remains solid and continues to support demand for new and used equipment.
For 2019, total construction investment and housing starts remained stable while oil and gas activity hovers at supportive levels for equipment demand growth. Importantly, our U.S. customer base is still optimistic on the year's prospects with heavy -- with healthy backlogs extending through much of the year.
Furthermore, equipment rental utilization remains high while rental rates continue to grow in 2019. Importantly, CapEx budgets from the independent rental companies continue at levels supportive of further equipment demand.
Lastly global transportation investment this year is forecast to grow about 5% though results vary by market and product form. The overall positive economic indicators are reflected in a strong order book which is now extending about four to five months well into the second half of 2019.
Moving to the C&F outlook on Slide 12, Deere's Construction & Forestry sales are now forecast to be up about 13% in 2019 as a result of stronger demand for equipment as well as an additional two months ownership of Wirtgen. We anticipate Wirtgen's 2019 sales to be flat compared to the previous 12 months at $3.4 billion as certain geographies such as China and Argentina have slowed in recent months. The forecast for global forestry markets is up between 5% to 10%, largely a result of strong demand for cut-to-length products in Europe and Russia.
C&F's full year operating margin is projected to be about 12% with Wirtgen's margins forecasted to be above that. With regards to Wirtgen, integration continues to go as planned and we are now forecasting a 25% increase to the acquisition synergies updating our estimate to EUR125 million.
At this point, I'd like to welcome Cory Reed, President of John Deere Financial. He will provide comments on the current environment for our financial services operations as well as guidance for the full year. Cory?
Cory J. Reed -- President, John Deere Financial
Thank you, Brent. Before discussing the quarter's results I'd like to review JDF strategy as a key supporting business to the enterprise. As shown on slide 13, John Deere Financial exists to enable growth of equipment sales by deepening customer relationships and strengthening our distribution channel. By fulfilling this mission, financial services provide sustainable financing solutions to customers and dealers throughout business cycles, while effectively managing credit risk.
Furthermore, we play an increasingly vital role in accelerating the adoption of precision ag and are key to extending Deere's leadership position in this area. It's important to emphasize that John Deere Financial's mission is exclusively aligned to the broader enterprise.
Slide 14 shows the composition of JDF's portfolio and demonstrates our disciplined focus on enabling equipment sales. Over the last few years this composition has remained relatively consistent, allowing for an optimal balance between portfolio of growth and risk management.
Regarding credit quality, John Deere Financial has maintained an exceptional record throughout its history. Even at the height of the 1980s farm crisis, write-offs in ag never exceeded 65 basis points. The current 10-year average provision stands much lower at 23 basis points. This exceptional performance reflects the company's unique position in the marketplace. In many cases, Deere has financed families for generations allowing us to get to know our customers and understand their operations better than many third-party lenders.
Furthermore, the credit quality also benefits from the strong resale and residual value of Deere equipment. Today the credit worthiness of our customer base remains strong with little difference between those who purchase and those who lease equipment. While closely watched during the ag trough, our lease portfolio is performing in line with expectations.
Importantly, since the challenges of 2016, we took steps to improve the quality of the lease book by lengthening durations in the U.S., which now stand at 40 months on average versus 32 months just three years ago.
Overall Deere products tend to maintain their value better than other financeable assets. As long as grain is demanded, acres will be farmed and high-quality equipment will be required ensuring the value of our portfolio is well maintained.
While JDF's credit quality is impressive, it's important to note the advantage, which the division contributes to enterprise growth. Specifically, we see JDF contributing in these four key areas; first, providing sustainable credit availability throughout the cycle; second, creating financing packages seamlessly integrated with the dealer experience; third, enabling sales in international markets; and fourth, accelerating the adoption of precision ag solutions.
First, John Deere Financial provides financing throughout the business cycle while the support of many third-party lenders tends to ebb and flow based on short-term market conditions. As a result JDF provides sustainability to our business model.
During the financial crisis of 2009, for example, the division provided critical continuity to operations of our customers and dealers, all while upholding its strong credit quality standards.
Secondly, our financial services group provides financing packages that span across Deere machines, precision hardware, software activations, subscriptions, parts and service, and dealer precision ag services. These offerings are enabled by the close integration between the equipment operations, the dealer and John Deere Financial.
Given our deep understanding of both our equipment and our customers Deere and John Deere dealers are uniquely positioned to tailor the right package for any farming operation. More than other financiers Deere best understands how the next equipment investment can make the farmer more successful. This deep customer knowledge and ease of use combined with tight dealer collaboration drives the 60% to 70% financing market share that JDF enjoys for its U.S. ag equipment.
Importantly, seamless financing plays a critical role in converting competitive fleets to Deere. Last month, I met with a large farmer in Indiana who was converting a multicolored fleet to an all-green fleet in order to benefit from Deere's integrated precision ag offerings. He commented that precision ag motivated him to change, but the John Deere Financial made the switch possible of simplifying and packaging an otherwise complex transaction.
Outside of North America financing options are essential to selling equipment. Depending on the geography, we utilize various business models to support the delivery of retail finance. For example, in India we maintained a wholly owned subsidiary where we own the portfolio and employ our own field sales, credit underwriting and servicing teams. However, in sub-Saharan Africa, we leverage branded cooperation agreements that deliver retail sales finance solutions through local banks. The business model we choose in each market depends on many factors including the size of the market, availability of financing and the risk environment.
In the case of Wirtgen, the Wirtgen leadership team has prioritized where JDF solutions are being developed and deployed. We've already launched retail financing products in the U.S., Canada and India. More than ever JDF is an integral component of our international growth aspirations and we tailor our financing solutions to support the sale of equipment and effectively manage risk.
Lastly, John Deere Financial is increasingly playing a critical role in accelerating precision ag adoption. With new precision features entering the market each year JDF provides unique finance offerings that make it easy for farmers to upgrade their equipment with the latest technology.
With our multiuse revolving platforms farmers finance new precision ag components, software, subscriptions and dealer services including everything from offseason machine maintenance and hardware upgrades the dealer planters, sprayer and harvest optimization services.
Earlier this week, I was with one of our most progressive precision ag dealers from the Southern Delta. He had just finished the successful precision ag field day for hundreds of its customers and he commented on the increasing demand in his market for precision ag services focused on the use of technology for better planting, better spraying, and better harvesting. This customer has used JDF's multi-use offerings to upgrade technology and buy his services. He also pushed our team to broaden our offerings of innovative financing solutions that make it easy for customers to adopt technologies that allow them to improve yield and manage cost. We're positioned well and actively working to do just that.
Before discussing the quarterly results, I'd like to reiterate, JDF's role in creating sustainable business outcomes for both Deere and our customers. First, as I've already mentioned, John Deere Financial is committed to our dealers and customers regardless of cycle fluctuations ensuring that customers have sustainable liquidity, when they need it most.
Second John Deere Financial enables Deere to enter new international markets. This is especially critical for developing nations transitioning to mechanization, as we facilitate access for smallholder farmers to the equipment that will make their operations economically sustainable.
Lastly John Deere Financial has been a very steady and reliable source o f earnings for the enterprise. While the equipment business experiences varying levels of demand cyclicality, JDF provides an important consistency to the overall financial results.
Let's move now to the quarter results for John Deere Financial. Slide 15 shows the provision for credit losses as a percentage of the average owned portfolio. The financial forecast for 2019 shown on the slide contemplates a loss provision of about 17 basis points, four basis points higher than 2018. This would put loss provisions for the year below the 10-year average of 23 basis points, and the 15-year average of 24 basis points.
Moving to Slide 16. Worldwide financial services net income attributable to Deere & Company was $154 million in the first quarter. For the full year in 2019, net income forecast remains at $630 million.
I'll now turn the call back over to Brent Norwood. Brent?
Brent Norwood -- Manager, Investor Communications
Slide 17 outlines receivables and inventories. For the company as a whole, receivables and inventories ended the quarter up $1.6 billion. In the C&F division, the increase is a result of a higher order book and production schedules.
For ag, the increase is due to better inventory positioning with our supply base and continued demand for small ag products, which require adequate inventory-to-sales ratios. By the end of the year, we forecast a reduction in inventory and receivables compared to 2018.
Moving to slide 18. Cost of sales for the first quarter was 78% of net sales and our 2019 guidance remains at about 75%, down about two points from 2018. R&D was up about 14% in the first quarter and forecasted to be up 5% in 2019, or 3% when excluding Wirtgen from the results for both periods. The increase in 2019 primarily relates to strategic investments in precision ag as well as next-generation new product development programs for large ag product lines.
SA&G expense for the equipment operations was up 9% in the quarter. The year-over-year increase is mostly attributable to the impact of Wirtgen. Our full year 2019 SA&G forecast expense is up about 7% or about 5% excluding Wirtgen.
Turning to slide 19. The equipment operations tax rate was 30% in the first quarter due to discrete items. For 2019, Deere's full year effective tax rate is now projected to be between 24% to 26%.
Slide 20 shows our equipment operations' history of strong cash flow. Cash flow from the equipment operations is now forecast to be about $4.4 billion in 2019, up from about $3.3 billion in 2018.
The company's financial outlook is on slide 21. We've kept our full year outlook for net sales to be up about 7%, which includes about three points of price realization and one point related to an additional two months of Wirtgen ownership. On the negative side, we expect currency to be about a two-point headwind next year.
With respect to cost inflation, we project that price realization forecasted in 2019 will offset both material cost and freight inflation experienced in 2018 as well as the additional increases forecasted in 2019. Finally, our full year 2019 net income forecast remains at about $3.6 billion.
I will now turn the call over to Raj Kalathur for closing comments. Raj?
Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer
Before we respond to your questions, I like to share some thoughts on the performance of the Ag & Turf division and outlook for the full year. First, I'd like to address the change in our Ag & Turf margin forecast from 12.5% to 12%. Decrease was largely due to an unfavorable change in mix. 2019 North American large Ag volumes are now forecasted to be flat to 2018, showing the resiliency of replacement demand cycle in light of trade uncertainty and unfavorable weather during Canadian harvest.
The flat combine order book in the U.S., reflects farmer concern over prolonged global trade uncertainty which has resulted in a wait-and-see approach for the 2019 season. Specifically many farmers were citing the tariff deadline of March 1, as an important date to watch for further clarity on the export market for soybeans.
The momentum shifts in equipment orders that we observed during the progressive phases of our early order programs reflect this cautious behavior as planter and sprayer EOPs ended up mid-single digits, while the more recent U.S. combine early order program ended flat.
It's important to reiterate that the underlying fundamentals of replacement demand are still very much intact even if 2019 experiences a brief pause and further growth. Encouragingly, our dealers are reporting robust quoting activity and are optimistic that further clarity on trade flow will be constructive to retail demand.
The hours and age of the fleet along with the technology advancements included in our latest offerings will continue to drive demand. Importantly, we firmly believe a timely resolution of the global trade issues affecting agricultural markets will drive resumed growth in the replacement cycle.
Lastly and very importantly, global demand for grain is projected to increase again in 2019 bringing supply and demand into a more favorable balance this marketing year and further improving next year with consumption projected to outpace production. This will mark the 24th consecutive year of global demand growth. And this key tailwind along with our proven ability to perform throughout the cycle gives us confidence in our capability to deliver strong results in 2019 and beyond.
Furthermore our strong market position will allow us to capitalize on these long-term trends thanks to the advantages of our product portfolio breadth, technology leadership and world-class channel.
Josh Jepsen -- Director, Investor Relations
Now we're ready to begin the Q&A portion of the call. The operator will instruct you on pull-in procedure. In consideration of others and our hope to allow more of you to participate in the call, please limit yourself to one question. If you have additional questions, we ask that you rejoin the queue. Operator?
Questions and Answers:
Operator
(Operator Instructions) The first question will come from Jamie Cook of Credit Suisse. Your line is open.
Jamie Cook -- Credit Suisse -- Analyst
Hi, good morning. Just first question. If you guys -- you guys also within the ag business you talked about product warranty issues. If you guys could quantify that and whether or not that was expected and just give some color around that. And then Raj, I'm just trying to understand what you're trying to say about China trade war, because you sound more cautious, but you're -- the order -- the industry outlook is the same. So I'm just trying to understand like why not take the top line forecast down and sort of where the order book on tractors is relative to your expectations at this point? Thanks.
Josh Jepsen -- Director, Investor Relations
Good morning, Jamie. If you think about -- maybe start with first quarter ag margins and what we saw there. So there are couple of things that -- to consider. So one is the warranty that you called out. And the issues we saw there were really related to product improvement programs. And as discussed before, those are lumpy and we address those as they occur. And it's important that we're making sure we're taking care of customers. So that occurred in the first quarter and that's why you see the higher expense in the quarter.
As you think about other impacts on the margins for the first quarter, we talked about -- generally, we've seen the supply issues stabilize and logistics have improved, but we have a few critical components, suppliers that were still having issues. And we're incurring a significant amount of premium airfreight to bring those into our factories in order to get those machines to customers. So those have been two issues that had a pretty big impact in the quarter. And on the freight issue, we expect that to linger into the third quarter.
And on top of that we had material which we've discussed. First quarter 2019 compared to first quarter 2018 is a difficult comparison as really 232 issues related to steel didn't start until the second quarter of 2018, so we see that impacting us really more in the first half. As we get to the latter part of the third quarter and into the fourth quarter, we see some of those -- that pricing abate due to our lags in our contracts. And then lastly on the quarter as we've talked about we've got step-up R&D as we're focused on our next-generation products and precision ag that overall those are the four items that impact us there.
Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer
And Jamie on your question about ag and top line 4% trade, what we would say is trades impacted the sentiment and that's more temporary. So we would say there is an upside, if there's trade resolution. Now if the trade thing prolongs, we still think the downside is not as much because we think the replacement demand from what we are seeing is still very healthy, OK? So when we factor all these upside downside we said, yes, trade is a negative right now. But longer term, it will tend to work out. And then beyond that the fundamentals are just very strong. That's why we left the ag where it is. And then if you look at Brazil places like that that's actually up for us. And small ag is up. There are other portions of ag that are actually working us up. So if you mix all that into the...
Jamie Cook -- Credit Suisse -- Analyst
But if the trade war isn't resolved, do you see downside risk? And then just where is your order book right now in big tractors? Because I think that's what everyone is trying to scratch their head around.
Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer
Yes. So overall, if the trade war extends further, we see limited downside risk, OK? Now overall, we know that some of this freight -- we've always said the trade routes will be realigned and the trade flows will readjust. And it's going to be bumpy, when that happens for a couple of years and that's kind of what we are seeing. But the underlying fundamentals of ag is still pretty strong and the replacement demand as we have said looking strong.
Josh Jepsen -- Director, Investor Relations
Thanks Jamie. We will go ahead and go to the next question.
Jamie Cook -- Credit Suisse -- Analyst
Thank you.
Operator
Thank you. The next question comes from Tim Thein of Citi. Your line is open.
Tim Thein -- Citi -- Analyst
Great. Thank you. Just -- first a clarification Raj on the switch or the lowering the large ag in North America the forecast. Does that have any implications for pricing as we move through the balance of the year relative to the initial forecast?
Josh Jepsen -- Director, Investor Relations
Hey, Tim. Let me think about the change -- yeah, understood. When we think about the impact there, so as Raj mentioned, we've seen the large ag come in some and that's on what we've seen with the combine early order programs as well as -- or we're seeing our large tractor order book has come in where year-over-year, we're down some there. And that's really created the mix impacts that we talked about and that's really the driver of the change in margins. All of the change in margins for ag from 12.5% to 12% is driven on that mix shift, because of the strength that we continue to see in small ag and this mix shift on the trade uncertainty on large ag. So that's the driver.
As you think about price 5% overall in the first quarter. We maintained our view on 3% for the full year. And then for the full year, you think about that both divisions are participating very similarly in that regard.
Tim Thein -- Citi -- Analyst
Okay. But just a follow-up on the operating costs. You'd outlined that headwind of about $850 million year-on-year. A, is that still the right number? And b, how would you think about as we move through the year? It sounds like a lot of that kind of dissipates in the second half but any help in terms of how much has already been experienced for that in 1Q?
Josh Jepsen -- Director, Investor Relations
The first half, we see unfavorable comps in our steel pricing as our contracts lagged as we've talked about in the past. As we get into the latter part of the third quarter, fourth quarter we see that improve from a comparison perspective. So that's where we see some of that. Now the seasonality of our build and how we're buying steel this year, we're buying about 55% first half versus 45% second half. So that has some impact too in terms of the benefit as those come down.
The other thing, I'd point out is, and this is a question that, we're likely to get is as that steel comes down some are we seeing that benefit. And what I'd point out is that airfreight that I mentioned earlier is really offsetting, what we're seeing in some of those steel price reductions as that roll through our forecast. And then maybe on top of that, the other issue kind of related to purchasing is what happens with the 301 tariffs. So on 301, a quarter ago we had said $100 million to $125 million. Today, we'd say, we're at the low end of that range about $100 million. And again, that assumes that we would go to 25% on 1, March, which certainly isn't questioned, but that's what we've got in our forecast today. Thanks Tim, and we will jump to the next caller.
Operator
Thank you. The next person is Steven Fisher of UBS. Your line is open.
Steven Fisher -- UBS -- Analyst
Great. Thanks. Just to be very clear so if no trade deal happens, Raj you said limited downside. Does that mean flat to up 5% North America goes to like flat? And then, related to construction, it sounds like your lower construction guidance was largely Wirtgen and China and Argentina plus forestry. Was there any real change to your core North American construction outlook? I mean, it looks like the construction settlements at retail were down in January. That's the first time in a while, that's been down. So I guess, I'm wondering to what extent is that a cautious demand signal? Or with first in the dirt still up, does that tell us that just rental is becoming a more important driver again? Thanks.
Josh Jepsen -- Director, Investor Relations
Yeah. I'll try to unpack that a little bit, Steve. I think first on the guide and Raj's comments relative to the trade dispute. I mean, when we were looking at our guide, we're thinking about what are the demand drivers, what are the fundamentals. And that really informs what we're doing.
As you think about kind of what does that mean over the course of the rest of the year for us, we do expect some recovery in orders. And we would say that could come from either trade resolution or just a refocusing on the fundamentals for our farmer customers. And that really means the P&L, as we think about cash receipts being up, as Raj mentioned, production being outpaced by consumption. So I think those are the couple of components in play there.
As it relates to C&F, you're right. When you think about the guidance for top line coming in a little bit, that's really driven entirely by Wirtgen coming back some. And your assumption there is also correct, really driven by some of those markets like China, Turkey, Argentina where we've seen some weakening there and some shifting in their mix.
From a legacy C&F perspective, we've seen continued strength in that order book. As Brent mentioned, we're out four months to five months, and really driven by economic indicators that continue to be positive. We called out what we've seen from the impenetrable companies, but also the -- just the general backlog of work that our contractors have.
So we've seen that top line on C&F move up slightly, while the Wirtgen numbers come in some. But that's kind of the combination of how those all interplay.
So thank you. We'll go ahead and jump to the next question.
Operator
The next question comes from David Raso of Evercore ISI. Your line is open.
David Raso -- Evercore ISI -- Analyst
Hi. Good morning. Just trying to gain a little more comfort on the ag and turf margins. The rest of the year, you're implying incremental margins are 22%. After the last two quarters, we've seen EBIT down in ag and turf despite sales up. So obviously, I appreciate the comments about the premium freight continuing to 3Q, but the mix sounds a little more adverse. Just trying to gain comfort why should we expect the incrementals to get so much better the next three months.
I know the cost come down on some of the input costs. But can you give us a little more comfort with maybe at a minimum giving us a little more clarity on the first quarter? If you think the margins at worse, people would have thought would have been flat year-over-year. So we're about 170 bps lower than you would have thought at baseline.
Can you give us some bucketing of -- warranty costs were 60 basis points, the higher production costs and thoughts were 80? I mean, just some way to frame because right now the incrementals in the next three quarters given the commentary aren't completely comforting.
Josh Jepsen -- Director, Investor Relations
Yeah. Thanks, David. Well, maybe jumping in. If we think about the full year in particular so, a 12% absolute margin versus a 12.5%. I think important things to consider there, you've got more than 0.5 point impact of FX. And similarly more than 0.5 point of impact from mix. So those are the two biggest drivers.
And you're right in that, you do see the -- our compares particularly as you get later in the year improve on the steel side of the business. And also as I mentioned with the airfreight on some of the critical components that we're seeing, we think that goes into the third quarter. So you do see improvement as we get further out.
From a price perspective, our expectation is on ag and turf, our price is pretty stable across the year. No big fluctuations throughout the year.
David Raso -- Evercore ISI -- Analyst
Well, Josh, I appreciate the full year framework. But given the first quarter is in the books now, can you at least help us with just for the quarter even? What were the warranty cost drags year-over-year in margin terms production costs just a way of some way to bucket it? Maybe the warranty costs were more than we thought less. Because again we got to have some comfort here with why the incrementals go that positive given there are some positives there. But there's definitely the mix and freight and so forth.
Josh Jepsen -- Director, Investor Relations
Yes. So, I guess maybe to put in context. If you look at R&A we see the drag in the first quarter. When you think about the full year we do not see that as a drag for the full year. So, that's one. That's a significant difference between the quarter and the full year.
Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer
Yes. That one's just timing David. We had a couple of product improvement programs that we wanted to get out and get our customers taken care of. But full year no real change--
David Raso -- Evercore ISI -- Analyst
But no quantification to help us with moving forward here the next three quarters of the year. I mean just some way to size the first quarter drag?
Josh Jepsen -- Director, Investor Relations
Yes. We don't size those specifically David.
David Raso -- Evercore ISI -- Analyst
Okay. I mean the same vein the Wirtgen. We didn't get the full quarter revenues on Wirtgen, we just got the incremental. What were the -- what was the full quarter Wirtgen revenues not just the incremental the full quarter?
Josh Jepsen -- Director, Investor Relations
Yes. So, the full quarter it was -- I mean one thing to consider there is seasonally this quarter is a really small quarter for their business as you think about their overall impact in terms of the colder weather you're not building roads and the like. So, first quarter, it was something like in the range of $600 million of sales for their full year. So, comparatively that's -- it's the smallest quarter that they would have from a sales perspective and from a margin perspective.
David Raso -- Evercore ISI -- Analyst
So, the rest-of-the-year, margins for Wirtgen have to get over 15% to at least get the full year to something like 13%? Can you help us -- again same with the Ag question, right. The rest of the year -- the Wirtgen margin improvement, was there still some deal cost or something in the first quarter that kept the margin low single digit but the rest of the year.
Josh Jepsen -- Director, Investor Relations
It's really just driven -- yes, it's driven by the really what is historically a weak quarter in terms of their activity. And that's been common for them their seasonality being really slow in the first quarter. When you think about the full year for Wirtgen, we're 12.5% margin. We feel really good about that business and the long-term prospects there. So, I think that's not a huge, huge surprise in terms of how they're performing. So, with that we can talk more offline David and we'll jump to next question.
Operator
Thank you. The next question is from Joe O'Dea of Vertical Research Partners. Your line is open.
Joe O'Dea -- Vertical Research Partners -- Analyst
Hi. Wanted to continue in a similar vein I guess. It sounds like the first quarter actually shaped up pretty similar to your expectations. I don't think you would have seen a lot of mix surprise and you knew the warranty stuff was coming. And so really when we think about that 170 bps of year-over-year margin decline in Ag & Turf when we think about 2Q I mean is that more flattish?
Seasonally, we generally see a nice step-up from 1Q to 2Q. And I think we're just trying to get comfortable with some of the moving parts in the cost structure and how to think about if 2Q comes in lighter year-over-year then we're looking at a less comfortable back-half growth. So, any help with that 2Q Ag & Turf margin whether that's kind of flattish year-over-year would be appreciated.
Josh Jepsen -- Director, Investor Relations
Yes, I mean 2Q is historically always -- we always see a pretty significant step-up. It's our largest sales quarter. And as Brent mentioned, we expect our seasonality on topline to be pretty similar if you break out kind of in a percentage terms in terms of how the quarter breaks out from a sales point of view. So, I think as we performed in the past would be a good indicator of our expectations going forward.
Joe O'Dea -- Vertical Research Partners -- Analyst
In terms of margin sequentials as well you're talking about not just revenue sequentials?
Josh Jepsen -- Director, Investor Relations
Yeah. That's right, on both sides.
Joe O'Dea -- Vertical Research Partners -- Analyst
Okay. And then on the C&F side, just to understand kind of the underlying very good legacy C&F margin in the quarter. It seems like Wirtgen is stepping down now for the full year. I'm sorry if I missed it. But what's the full year Wirtgen margin expectation at this point?
Josh Jepsen -- Director, Investor Relations
Yeah. So Wirtgen we expect to be about 12.5% margins on essentially full year to full year flat sales, so $3.4 billion of sales and about 12.5% margin. So with that we'll jump to the next question. Thanks, Joe.
Operator
Thank you. The next question comes from Andy Casey of Wells Fargo Securities. Your line is open.
Andy Casey -- Wells Fargo Securities -- Analyst
Thanks a lot. Good morning, everybody.
Josh Jepsen -- Director, Investor Relations
Good morning, Andy.
Andy Casey -- Wells Fargo Securities -- Analyst
Had a question on the $400 million OCF guidance decrease from the prior $4.8 billion. What drove that?
Josh Jepsen -- Director, Investor Relations
Yes. The biggest portion of that change was just shift in working capital, as we refine forecast and you have some seasonality movements and the like but that was the biggest driver.
Andy Casey -- Wells Fargo Securities -- Analyst
So if I look at slide 17, you're now expecting $175 million tailwind for receivables and inventory. I don't think you gave that outlook in your fourth quarter conference call. Is that significantly different?
Josh Jepsen -- Director, Investor Relations
Yeah. I don't think it's significantly different. I mean, I think, some of it is timing related in terms of how it moves and when that inventory and receivables are moving in and out throughout the year. But it's not a significant shift.
Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer
Andy, overall, the $4.4 billion cash flow from operation is still very strong. You'll always have some working capital shifts, as we go from one month to the next. And then we also had some changes in our dividends from JDF based on the size of the portfolio ending portfolio and such. So still a very strong cash flow from operations.
Josh Jepsen -- Director, Investor Relations
Thanks, Andy. We'll jump to the next question.
Operator
Thank you. The next question comes from Ann Duignan of JPMorgan. Your line is open.
Ann Duignan -- JPMorgan -- Analyst
Yeah. Hi, good morning, everybody. Raj, you touched on something that I think deserves more attention and that's trade flows could be impacted permanently as a result of these tariffs even if they're eliminated. Can you talk about the downside risk to U.S. agriculture on the back of these tariffs and the fact that our exports of soybeans are down almost 40% year-to-date and we export 60% of production through the end of January? So this could be a permanent impact on U.S. soybean exports. And what happens if that is true?
Josh Jepsen -- Director, Investor Relations
Yeah. Thanks, Ann. This is Josh. I'll start. I mean, I think, when we think about the trade floor rerouting, I think the positive thing is, we've seen some of that already occurring. We've seen more of our soybeans go into places like Europe, like Egypt former Brazilian trade partners.
So those things are happening. And I think it gets back to the fundamentals of, demand has increased and looks to continue to increase and there are only a few places in the world that produce enough soybeans to meet that demand. So I think it's really hard to say what do we think permanent damage is, because we have seen some of this rerouting move.
Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer
Yeah. Again, Ann, no, I'm not sure we will say there's a permanent damage already. So what we would say is, trade flows will reroute. And again, the fundamentals are still very strong. As you know cash receipts are important, right? That's a big predictor for ag equipment demand in the U.S., in Canada. And global demand for grain including oilseeds has been growing for the last 24 years. If you look at the last five marketing years, weather has been very good in general and production has been plentiful and higher than the growing consumption portion. Even though production's been plentiful for the last five years in the 2018, 2019 marketing year, you're seeing production and consumption in better balance. And as we've said -- and consumption is forecast to be higher than production, reducing stocks and putting pressure on commodity prices again.
So, now these are the reasons why commodity prices are holding up very well and well above breakeven prices. From what Informa Economics would say for many farmers, again it's the reason why farmers were good economic actors, continue to consistently plant 320 million acres of major crop in the U.S. which means they're going to utilize their machinery and so the need for replacement equipment. So we think on balance, downside is still pretty limited.
Josh Jepsen -- Director, Investor Relations
We will go ahead and go to the next question. Thank you.
Operator
Thank you. The next question comes from Steve Volkmann of Jefferies. Your line is open.
Steve Volkmann -- Jefferies -- Analyst
Hi, good morning guys. Just two quick follow-ups if I might. You talked a little bit about the combine early orders and some of the planters and sprayers. Could you just talk about tractors what you saw in early orders for tractors?
And then the second question I'll just put right on here. Maybe this is just splitting hairs. But the slight decrease in R&D spending, what's that about? And is that a response to a slightly weaker market? Or is it sort of unrelated? Thank you.
Josh Jepsen -- Director, Investor Relations
Thanks, Steve. Maybe start with the latter. On the R&D side, it's really just an adjustment related to timing and how those programs are working out. So no significant shifts there or anything other than just tune up a forecast for how we're spending through the first quarter and how we see that playing out for the year.
As it relates to large tractors as we talked about, we have seen orders slow some compared to where we were a quarter ago, really as the prolonged trade uncertainty is pausing some purchase decisions as customers take a wait-and-see approach. I think what's important as we talk to our dealers, our dealers were -- we just had a meeting with all of our dealer CEOs. And we see -- they see a lot of traffic in the dealerships strong quoting activity. And when you look at the first three months of the year, we saw a pretty -- really strong retail activity across large tractors and combines.
So I think while you do -- we've seen some folks maybe stay a little bit on the sideline waiting the traffics there and the leaderships they're quoting. So as Raj mentioned I think a little more certainty. We definitely believe those drivers of demand continue to be there.
Thanks, Steve. We'll go ahead and jump to the next question.
Operator
The next question is from Seth Weber of RBC Capital Markets. your line is open.
Seth Weber -- RBC Capital Markets -- Analyst
Hi, good morning everybody. I wanted to take another swing at the ag and turf margin question. I mean, do you feel like we can exit the year with the -- with steel and some of their freight cost and things getting better? Can you exit the year with your mid -- low to mid-30% incremental margin? And is that still the way -- the right way to think about the business for next year assuming mix gets back to where you thought we were at this year? Thanks.
Josh Jepsen -- Director, Investor Relations
Yeah. I think that's fair. I mean, I think if you look at our full year right now and think about the biggest drivers of -- that are impacting margins FX and mix. From an incremental perspective, you'd be kind of in the mid-30s, if you didn't have those drivers. So I think that's fair to say. Those two things have been the biggest hindrance to our full year guide.
Seth Weber -- RBC Capital Markets -- Analyst
Okay. And then just real quick. Can you comment on just what you're seeing on industry inventory on the higher horsepower stuff because there were some concerns that it's getting elevated?
Josh Jepsen -- Director, Investor Relations
Yes. I mean, our view is we -- I think we were very comfortable with our inventory levels there. As you look at for example in the AEM 100-horsepower and above inventory and you look at -- the industry less Deere is about 70% and we're about half of that. So we're continuing to manage that diligently and we'll continue to be cautious and thoughtful about how we're managing field inventory. Combines for example, we'd be about one-third lower than industry last year. So continuing to be thoughtful on the inventory positions out there.
Seth Weber -- RBC Capital Markets -- Analyst
Okay. Thank you very much.
Josh Jepsen -- Director, Investor Relations
So thanks. We will jump to the next question. Thanks, Seth.
Operator
Thank you. The next question is from Mig Dobre of Baird. Your line is open.
Mig Dobre -- Baird -- Analyst
Yeah. Good morning. Good morning everyone. I'd like to go back to Wirtgen, if we may. So I used to expect growth. And from what I can recall you're expecting something like 14% margin. You stepped it down right flat and margins 12.5%. But I'm sort of trying to understand performance in the quarter versus your outlook going forward. It looks to me like the Wirtgen margin was something like 3% in the quarter and I'm wondering if you've taken any restructuring or if you've done anything specific in the quarter, because the seasonality here it seems to me to be a little bit out of whack. And then, you also raised your synergies longer term. It seems like you're doing something with this business. I just -- I guess, I'm wondering, what is it and how does it flow through to the rest of the year?
Josh Jepsen -- Director, Investor Relations
Yes. Thanks, Mig. I think seasonally like I mentioned earlier 1Q is the -- is kind of the I think slowest smallest quarter and you see that impact. I think you also have the component of they own a significant amount of their channel. So as they're building inventory or building machines that's -- those aren't necessarily getting sold to third parties. So you have some of that impact. And then there is a component of as we align our order fulfillment strategies, we're going to work to optimize field inventory and be thoughtful about how we manage that. So I think those are the biggest drivers.
We talked a little bit about the sales coming taking our sales guide to be flat year-over-year around $3.4 billion. That's really I'd say softness in some key markets China in particular which is one that's been well discussed. And then a little bit of shifting in terms of mix among their product lines that drive some of that activity, but those are really the drivers of that business.
Mig Dobre -- Baird -- Analyst
I'm sorry Josh, but that's still -- no, it's still not clear to me. I mean if we're excluding some of these items that you sort of called out that seem to be temporary what would the margin of this business would have been? I mean like what's happening here versus planned? And what's the seasonality of margins typically through the year?
Josh Jepsen -- Director, Investor Relations
I think this is kind of normal seasonality for their business Mig. First quarter is traditionally a much lighter-margin quarter. It gets much better as you move into the remainder of the year particularly in the kind of mid quarters would be R2 and 3Q and so that's normal for their business. So, that's what we'd expect. So, I don't -- this is not a big departure from what we've seen for their seasonality in the past. We can chat more offline if you've got more additional questions there Mig. We'll go ahead and go to the next question please.
Operator
Thank you. The next question is from Jerry Revich of Goldman Sachs. Your line is open.
Jerry Revich -- Goldman Sachs -- Analyst
Yes, hi. Good morning everyone. I'm wondering if you can talk about it. So to hit the Ag & Turf sales guidance for the year do your order rates over the balance of the year have to pick up more than normal seasonality?
In other words Josh has spoken about the higher increase in foot traffic. Do you need that to convert to orders that are higher rate than historically given the weaker overall early order program results in large ag?
Josh Jepsen -- Director, Investor Relations
Yes, I mean I think we would expect to see some level of recovery in orders. Again as we talked about whether that comes from trade resolution or just a refocus on the underlying fundamentals that would be there in terms of what we'd expect to see.
And I think the thing that we feel good about as you mentioned is we're seeing a lot of traffic. The drivers of that demand continue to be there; hours, age on equipment.
Many farmers, as Brent mentioned, from an underlying fundamentals perspective, 2018, 2019, you see prices higher on three of the four major crops. So, I think that's a significant driver as well.
Jerry Revich -- Goldman Sachs -- Analyst
Okay. And on the precision ag side we're hearing from your dealers that ExactApply has really good momentum with penetration in the 30s. I'm wondering if you can comment. Is that a fair nationwide number? And from an architecture standpoint, how does the existing spraying architecture and ExactApply fit in when you folks bring Blue River to market in a couple of years?
Josh Jepsen -- Director, Investor Relations
No -- it's a good question. I mean we have seen across the early order programs continued strong adoption of technology whether it's ExactApply which we saw about 50% growth in that take rate to be about 50% so about half of those machines taking that.
We've seen big steps in things like ExactEmerge; Combine Advisor closer to 70%; Active Yield more like 90%. So we're continuing to see that adoption. I mean as it relates to ExactApply and how do those product forms look with Blue River and See & Spray when we come I think we're still working through that. Today, we -- or this year we've had that out being tested in both cotton and in soybeans. But I think we're still, I'd say developing what exactly that will look like. We feel really good about what it's going to look like in terms of the performance that we've seen in the field, but I think pretty premature to say what exactly that product form looks like.
Jerry Revich -- Goldman Sachs -- Analyst
Thank you.
Josh Jepsen -- Director, Investor Relations
With that, we'll go to the next question. Thank you.
Operator
The next question is from Joel Tiss of BMO. Your line is open.
Joel Tiss -- BMO -- Analyst
I just wonder is there any way to kind of break out the pricing from the precision versus the underlying equipment pricing just to give us a sense? It's kind of half and half of your price increases.
Josh Jepsen -- Director, Investor Relations
Yeah. Joel, that's the -- I think the one is the benefit of our vertical integration in terms of how we've designed this and built it to be one and the same with our hardware. So it's a challenge to break those out because we're not pricing that as two different components. Now you might have features and solutions that you can add on, but we don't dig those deep to separate each of those items.
So I'd go back to how do we monetize precision ag. It's in-base features that are in base things like guidance or hardware and guidance telematics. Subscriptions for telematics and for our guidance systems would be a second way. And then lastly, would be what we'd say job automation so things that allow customers to plant spray, harvest, better. So it's ExactApply. It's ExactEmerge. It's Combine Advisor and those sorts of things. So as far as -- when you think about 3% price realization for the year, it's really hard to say what amount is driven by that. So I think we will continue to dig in and have more conversations around precision ag. But today we're not -- we don't have a good way to attribute pricing specific to that.
So with that, I think we're at the top of the hour. So we appreciate all the questions. We'll be doing follow-ups. So appreciate all the interest and we'll be talking soon. Thank you.
Operator
Thank you for your participation on today's conference call. At this time, all parties may disconnect.
Duration: 61 minutes
Call participants:
Josh Jepsen -- Director, Investor Relations
Brent Norwood -- Manager, Investor Communications
Cory J. Reed -- President, John Deere Financial
Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer
Jamie Cook -- Credit Suisse -- Analyst
Tim Thein -- Citi -- Analyst
Steven Fisher -- UBS -- Analyst
David Raso -- Evercore ISI -- Analyst
Joe O'Dea -- Vertical Research Partners -- Analyst
Andy Casey -- Wells Fargo Securities -- Analyst
Ann Duignan -- JPMorgan -- Analyst
Steve Volkmann -- Jefferies -- Analyst
Seth Weber -- RBC Capital Markets -- Analyst
Mig Dobre -- Baird -- Analyst
Jerry Revich -- Goldman Sachs -- Analyst
Joel Tiss -- BMO -- Analyst
More DE analysis
Transcript powered by AlphaStreet
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see ourTerms and Conditionsfor additional details, including our Obligatory Capitalized Disclaimers of Liability.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The latest USDA data indicates an additional 10 million metric tons of U.S. soybeans were exported to non-China destinations, including the EU, Middle East and Southeast Asia as trade flow patterns continue to readjust. Specifically, we see JDF contributing in these four key areas; first, providing sustainable credit availability throughout the cycle; second, creating financing packages seamlessly integrated with the dealer experience; third, enabling sales in international markets; and fourth, accelerating the adoption of precision ag solutions. 2019 North American large Ag volumes are now forecasted to be flat to 2018, showing the resiliency of replacement demand cycle in light of trade uncertainty and unfavorable weather during Canadian harvest.
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Specifically, we see JDF contributing in these four key areas; first, providing sustainable credit availability throughout the cycle; second, creating financing packages seamlessly integrated with the dealer experience; third, enabling sales in international markets; and fourth, accelerating the adoption of precision ag solutions. Secondly, our financial services group provides financing packages that span across Deere machines, precision hardware, software activations, subscriptions, parts and service, and dealer precision ag services. Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer Yes.
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Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer Yes. Duration: 61 minutes Call participants: Josh Jepsen -- Director, Investor Relations Brent Norwood -- Manager, Investor Communications Cory J. Reed -- President, John Deere Financial Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer Jamie Cook -- Credit Suisse -- Analyst Tim Thein -- Citi -- Analyst Steven Fisher -- UBS -- Analyst David Raso -- Evercore ISI -- Analyst Joe O'Dea -- Vertical Research Partners -- Analyst Andy Casey -- Wells Fargo Securities -- Analyst Ann Duignan -- JPMorgan -- Analyst Steve Volkmann -- Jefferies -- Analyst Seth Weber -- RBC Capital Markets -- Analyst Mig Dobre -- Baird -- Analyst Jerry Revich -- Goldman Sachs -- Analyst Joel Tiss -- BMO -- Analyst More DE analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. Deere & Co (NYSE: DE) Q1 2019 Earnings Conference Call Feb. 15, 2019 , 10:00 a.m.
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Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer Yes. Duration: 61 minutes Call participants: Josh Jepsen -- Director, Investor Relations Brent Norwood -- Manager, Investor Communications Cory J. Reed -- President, John Deere Financial Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer Jamie Cook -- Credit Suisse -- Analyst Tim Thein -- Citi -- Analyst Steven Fisher -- UBS -- Analyst David Raso -- Evercore ISI -- Analyst Joe O'Dea -- Vertical Research Partners -- Analyst Andy Casey -- Wells Fargo Securities -- Analyst Ann Duignan -- JPMorgan -- Analyst Steve Volkmann -- Jefferies -- Analyst Seth Weber -- RBC Capital Markets -- Analyst Mig Dobre -- Baird -- Analyst Jerry Revich -- Goldman Sachs -- Analyst Joel Tiss -- BMO -- Analyst More DE analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. Deere & Co (NYSE: DE) Q1 2019 Earnings Conference Call Feb. 15, 2019 , 10:00 a.m.
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2019-02-15 00:00:00 UTC
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Deere's Q1 earnings hurt by higher costs, trade war
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https://www.nasdaq.com/articles/deeres-q1-earnings-hurt-higher-costs-trade-war-2019-02-15
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By Rajesh Kumar Singh
CHICAGO, Feb 15 () - Deere & Co's first-quarter earnings on Friday missed Wall Street's estimates, hurt by higher raw materials and logistics costs as well as by slowing trade between the United States and its partners, particularly China, sending its shares lower.
The world's largest tractor manufacturer retained its 2019 earnings guidance - full-year net income is expected to be $3.6 billion with a 7 percent annual growth in equipment sales.
Deere's shares were down more than 2 percent at $159.01 in midday trade. The stock has gained over 9 percent this year, after falling about 6 percent in 2018, on hopes of a deal with Beijing.
Hoping that the trade issue would be resolved soon, Deere built up roughly $1.3 billion in inventory in the first quarter from the previous quarter.
Stephen Volkmann, a machinery analyst at Jefferies, says the inventory could weigh on the company's profits if the trade standoff prolongs and may force it to resort to cost cuts.
"If we settle the trade issue in a meaningful way, then this (earnings) forecast is conservative," he said. "But if it continues to drag on, you are going to see some risk."
The trade war is further squeezing American farmers whose incomes have been under pressure amid a global grain glut.
China bought about $12 billion worth of U.S. soy in 2017, but mostly shifted purchases to Brazil last year because of the trade fight.
While China has recently returned to buy U.S. soy, the purchases have been too small to make up for the lost sales. With supplies swelling in the domestic market, prices plunged to near decade lows last autumn.
Deere said the trade war has made farmers more cautious in making major purchases. However, it downplayed risks to the 2019 sales forecast, saying replacement demand for aging fleet was still "very healthy".
"We anticipate a resumed recovery in equipment volumes as new trade routes mature or U.S.-China trade contingencies abate," Brent Norwood, investor communications manager, said on an earnings call.
The company expects industry sales of farm and turf equipment in North America - its biggest market - to be flat to up 5 percent this year. But it trimmed the profit estimates for its agriculture and turf division, citing the slowdown in replacement demand for large farm equipment amid persistent trade uncertainties.
Not only has U.S. President Donald Trump's tariff war clouded the outlook for farm equipment demand, but it has also inflated the domestic prices for steel and aluminum used by the company in making its products.
Freight and raw materials costs are expected to remain elevated in the coming quarter. The tariffs on Chinese imports are projected to cost $100 million this year.
Deere's production costs in the first quarter shot up by 2 percentage points from last quarter. Higher manufacturing costs along with a rise in warranty-related expenses led to a 10 percent annual fall in operating profit in the first quarter at its agriculture and turf division.
Sales at its construction and forestry division were up 31 percent year on year in the latest quarter. But the company downgraded the 2019 sales growth forecast for the unit to 13 percent from 15 percent estimated earlier.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Rajesh Kumar Singh CHICAGO, Feb 15 () - Deere & Co's first-quarter earnings on Friday missed Wall Street's estimates, hurt by higher raw materials and logistics costs as well as by slowing trade between the United States and its partners, particularly China, sending its shares lower. But it trimmed the profit estimates for its agriculture and turf division, citing the slowdown in replacement demand for large farm equipment amid persistent trade uncertainties. Not only has U.S. President Donald Trump's tariff war clouded the outlook for farm equipment demand, but it has also inflated the domestic prices for steel and aluminum used by the company in making its products.
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But the company downgraded the 2019 sales growth forecast for the unit to 13 percent from 15 percent estimated earlier. By Rajesh Kumar Singh CHICAGO, Feb 15 () - Deere & Co's first-quarter earnings on Friday missed Wall Street's estimates, hurt by higher raw materials and logistics costs as well as by slowing trade between the United States and its partners, particularly China, sending its shares lower. Deere's shares were down more than 2 percent at $159.01 in midday trade.
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By Rajesh Kumar Singh CHICAGO, Feb 15 () - Deere & Co's first-quarter earnings on Friday missed Wall Street's estimates, hurt by higher raw materials and logistics costs as well as by slowing trade between the United States and its partners, particularly China, sending its shares lower. Deere's shares were down more than 2 percent at $159.01 in midday trade. The stock has gained over 9 percent this year, after falling about 6 percent in 2018, on hopes of a deal with Beijing.
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Deere said the trade war has made farmers more cautious in making major purchases. But the company downgraded the 2019 sales growth forecast for the unit to 13 percent from 15 percent estimated earlier. By Rajesh Kumar Singh CHICAGO, Feb 15 () - Deere & Co's first-quarter earnings on Friday missed Wall Street's estimates, hurt by higher raw materials and logistics costs as well as by slowing trade between the United States and its partners, particularly China, sending its shares lower.
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2019-02-14 00:00:00 UTC
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Will Deere (DE) Stock Continue to Climb After Q1 Earnings?
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https://www.nasdaq.com/articles/will-deere-de-stock-continue-climb-after-q1-earnings-2019-02-14
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Deere & Company DE shares have surged roughly 20% in the last six months to crush its industry's 1% average climb and Caterpillar CAT and nearly match Boeing's BA impressive run. The question now is can this manufacturing and farm equipment power's recent success continue with it set to repor t earnings before the opening bell Friday?
QuickOverview
Deere and fellow industrial giants still face uncertainty regarding the future despite reports of increased trade talks between the U.S. and China. The company is also coming off a significant bottom-line miss in Q4 fiscal 2018. Deere fell short of adjusted revenue estimates as well, but did see its top-line jump 17% to $9.42 billion, driven by gains from its purchase of German construction firm, The Wirtgen Group.
Despite the relatively disappointing quarter, shares of Deere have climb over the last six months. With that said, Bank of America downgraded DE to "neutral" recently, citing its significant gains, among other reasons. We can also see that DE and CAT stock have tracked one another pretty closely historically, which means Deere could be set to drop back down.
Outlook & Earnings Trends
Moving on, our current Zacks Consensus Estimate calls for Deere's first-quarter fiscal 2019 revenues to surge 14.05% to reach $6.81 billion. Looking a bit further down the road, the company is expected to post full-year revenues of $35.67 billion, which would represent a nearly 7% climb above 2018.
At the bottom end of the income statement, DE's adjusted quarterly earnings are projected to soar 37.4% to reach $1.80 per share. Meanwhile, the company's fiscal 2019 earnings are expected to jump 21.5%.
Investors should also note that Deere's Q1 EPS projection has climbed by $0.05 a share over the duration of the quarter, which means that analysts' earnings sentiment turned more bullish. At the same time, however, the firm's current full-year earnings outlook has fallen by $0.11.
Bottom Line
Deere is currently a Zacks Rank #2 (Buy) based on its Q1 and fiscal 2020 earnings revision activity. The company also sports a "B" grade for Value in our Style Scores system. With all that said, Deere stock has been riding high recently, which will likely make it harder to impress investors Friday.
Deere is scheduled to report its Q1 fiscal 2019 financial results before the opening bell on Friday, 15 February. Make sure to come back to Zacks for a full breakdown of the company's actual metrics.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & Company DE shares have surged roughly 20% in the last six months to crush its industry's 1% average climb and Caterpillar CAT and nearly match Boeing's BA impressive run. Deere fell short of adjusted revenue estimates as well, but did see its top-line jump 17% to $9.42 billion, driven by gains from its purchase of German construction firm, The Wirtgen Group. Outlook & Earnings Trends Moving on, our current Zacks Consensus Estimate calls for Deere's first-quarter fiscal 2019 revenues to surge 14.05% to reach $6.81 billion.
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Outlook & Earnings Trends Moving on, our current Zacks Consensus Estimate calls for Deere's first-quarter fiscal 2019 revenues to surge 14.05% to reach $6.81 billion. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & Company DE shares have surged roughly 20% in the last six months to crush its industry's 1% average climb and Caterpillar CAT and nearly match Boeing's BA impressive run.
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Deere & Company DE shares have surged roughly 20% in the last six months to crush its industry's 1% average climb and Caterpillar CAT and nearly match Boeing's BA impressive run. Outlook & Earnings Trends Moving on, our current Zacks Consensus Estimate calls for Deere's first-quarter fiscal 2019 revenues to surge 14.05% to reach $6.81 billion. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Outlook & Earnings Trends Moving on, our current Zacks Consensus Estimate calls for Deere's first-quarter fiscal 2019 revenues to surge 14.05% to reach $6.81 billion. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & Company DE shares have surged roughly 20% in the last six months to crush its industry's 1% average climb and Caterpillar CAT and nearly match Boeing's BA impressive run.
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2019-02-14 00:00:00 UTC
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Pre-Market Earnings Report for February 15, 2019 : PEP, ENB, DE, MCO, FTS, NWL, YNDX, WBC, CHH, POR, SXT, DAN
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https://www.nasdaq.com/articles/pre-market-earnings-report-february-15-2019-pep-enb-de-mco-fts-nwl-yndx-wbc-chh-por-sxt
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The following companies are expected to repor t earnings prior to market open on 02/15/2019. Visit our Earnings Calendar for a full list of expected earnings releases.
Pepsico, Inc. ( PEP ) is reporting for the quarter ending December 31, 2018. The beverages company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.49. This value represents a 13.74% increase compared to the same quarter last year. In the past year PEP has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 1.92%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for PEP is 20.20 vs. an industry ratio of 21.50.
Enbridge Inc ( ENB ) is reporting for the quarter ending December 31, 2018. The oil (production/pipeline) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.45. This value represents a 6.25% decrease compared to the same quarter last year. In the past year ENB has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2018 Price to Earnings ratio for ENB is 17.52 vs. an industry ratio of 2.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Deere & Company ( DE ) is reporting for the quarter ending January 31, 2019. The farm machinery company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.80. This value represents a 37.40% increase compared to the same quarter last year. Zacks Investment Research reports that the 2019 Price to Earnings ratio for DE is 14.26 vs. an industry ratio of 17.50.
Moody's Corporation ( MCO ) is reporting for the quarter ending December 31, 2018. The financial services company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.71. This value represents a 13.25% increase compared to the same quarter last year. MCO missed the consensus earnings per share in the 3rd calendar quarter of 2018 by -5.06%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for MCO is 22.01 vs. an industry ratio of 7.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Fortis Inc. ( FTS ) is reporting for the quarter ending December 31, 2018. The electric power utilities company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.46. This value represents a 6.12% decrease compared to the same quarter last year. In the past year FTS has met analyst expectations three times and beat the expectations the other quarter. Zacks Investment Research reports that the 2018 Price to Earnings ratio for FTS is 18.42 vs. an industry ratio of 12.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Newell Brands Inc. ( NWL ) is reporting for the quarter ending December 31, 2018. The consumer company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.41. This value represents a 39.71% decrease compared to the same quarter last year. In the past year NWL has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 107.69%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for NWL is 17.75 vs. an industry ratio of 19.10.
Yandex N.V. ( YNDX ) is reporting for the quarter ending December 31, 2018. The internet content company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.32. This value represents a 18.52% increase compared to the same quarter last year. Zacks Investment Research reports that the 2018 Price to Earnings ratio for YNDX is 43.97 vs. an industry ratio of 18.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Wabco Holdings Inc. ( WBC ) is reporting for the quarter ending December 31, 2018. The auto (truck) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.99. This value represents a 0.50% decrease compared to the same quarter last year. In the past year WBC has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 11.25%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for WBC is 15.13 vs. an industry ratio of 6.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Choice Hotels International, Inc. ( CHH ) is reporting for the quarter ending December 31, 2018. The hotel company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.83. This value represents a 31.75% increase compared to the same quarter last year. In the past year CHH has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2018 Price to Earnings ratio for CHH is 21.19 vs. an industry ratio of 22.40.
Portland General Electric Company ( POR ) is reporting for the quarter ending December 31, 2018. The electric power utilities company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.54. This value represents a 19.40% decrease compared to the same quarter last year. In the past year POR has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 18%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for POR is 20.70 vs. an industry ratio of 12.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Sensient Technologies Corporation ( SXT ) is reporting for the quarter ending December 31, 2018. The chemical company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.79. This value represents a 5.95% decrease compared to the same quarter last year. SXT missed the consensus earnings per share in the 1st calendar quarter of 2018 by -1.11%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for SXT is 17.74 vs. an industry ratio of 23.10.
Dana Incorporated ( DAN ) is reporting for the quarter ending December 31, 2018. The auto (truck) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.66. This value represents a 6.45% increase compared to the same quarter last year. DAN missed the consensus earnings per share in the 2nd calendar quarter of 2018 by -3.9%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for DAN is 5.86 vs. an industry ratio of 6.80.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Pepsico, Inc. ( PEP ) is reporting for the quarter ending December 31, 2018. Enbridge Inc ( ENB ) is reporting for the quarter ending December 31, 2018. This value represents a 6.25% decrease compared to the same quarter last year.
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Pepsico, Inc. ( PEP ) is reporting for the quarter ending December 31, 2018. Enbridge Inc ( ENB ) is reporting for the quarter ending December 31, 2018. This value represents a 6.25% decrease compared to the same quarter last year.
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Pepsico, Inc. ( PEP ) is reporting for the quarter ending December 31, 2018. Enbridge Inc ( ENB ) is reporting for the quarter ending December 31, 2018. This value represents a 6.25% decrease compared to the same quarter last year.
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Pepsico, Inc. ( PEP ) is reporting for the quarter ending December 31, 2018. Enbridge Inc ( ENB ) is reporting for the quarter ending December 31, 2018. This value represents a 6.25% decrease compared to the same quarter last year.
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52997c7e-9795-4997-a070-e42220950065
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721860.0
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2019-02-14 00:00:00 UTC
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Noteworthy Thursday Option Activity: R, DE, FB
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DE
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity-r-de-fb-2019-02-14
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Ryder System, Inc. (Symbol: R), where a total volume of 5,519 contracts has been traded thus far today, a contract volume which is representative of approximately 551,900 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 76.1% of R's average daily trading volume over the past month, of 725,450 shares. Especially high volume was seen for the $57.50 strike call option expiring February 15, 2019 , with 1,288 contracts trading so far today, representing approximately 128,800 underlying shares of R. Below is a chart showing R's trailing twelve month trading history, with the $57.50 strike highlighted in orange:
Deere & Co. (Symbol: DE) saw options trading volume of 15,530 contracts, representing approximately 1.6 million underlying shares or approximately 74.4% of DE's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $157.50 strike put option expiring February 15, 2019 , with 1,237 contracts trading so far today, representing approximately 123,700 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $157.50 strike highlighted in orange:
And Facebook Inc (Symbol: FB) options are showing a volume of 167,971 contracts thus far today. That number of contracts represents approximately 16.8 million underlying shares, working out to a sizeable 72.2% of FB's average daily trading volume over the past month, of 23.3 million shares. Particularly high volume was seen for the $165 strike call option expiring February 15, 2019 , with 14,481 contracts trading so far today, representing approximately 1.4 million underlying shares of FB. Below is a chart showing FB's trailing twelve month trading history, with the $165 strike highlighted in orange:
For the various different available expirations for R options , DE options , or FB options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $57.50 strike call option expiring February 15, 2019 , with 1,288 contracts trading so far today, representing approximately 128,800 underlying shares of R. Below is a chart showing R's trailing twelve month trading history, with the $57.50 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 15,530 contracts, representing approximately 1.6 million underlying shares or approximately 74.4% of DE's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $157.50 strike put option expiring February 15, 2019 , with 1,237 contracts trading so far today, representing approximately 123,700 underlying shares of DE. Particularly high volume was seen for the $165 strike call option expiring February 15, 2019 , with 14,481 contracts trading so far today, representing approximately 1.4 million underlying shares of FB.
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Especially high volume was seen for the $57.50 strike call option expiring February 15, 2019 , with 1,288 contracts trading so far today, representing approximately 128,800 underlying shares of R. Below is a chart showing R's trailing twelve month trading history, with the $57.50 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 15,530 contracts, representing approximately 1.6 million underlying shares or approximately 74.4% of DE's average daily trading volume over the past month, of 2.1 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $157.50 strike highlighted in orange: And Facebook Inc (Symbol: FB) options are showing a volume of 167,971 contracts thus far today. Particularly high volume was seen for the $165 strike call option expiring February 15, 2019 , with 14,481 contracts trading so far today, representing approximately 1.4 million underlying shares of FB.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Ryder System, Inc. (Symbol: R), where a total volume of 5,519 contracts has been traded thus far today, a contract volume which is representative of approximately 551,900 underlying shares (given that every 1 contract represents 100 underlying shares). Especially high volume was seen for the $57.50 strike call option expiring February 15, 2019 , with 1,288 contracts trading so far today, representing approximately 128,800 underlying shares of R. Below is a chart showing R's trailing twelve month trading history, with the $57.50 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 15,530 contracts, representing approximately 1.6 million underlying shares or approximately 74.4% of DE's average daily trading volume over the past month, of 2.1 million shares. Particularly high volume was seen for the $165 strike call option expiring February 15, 2019 , with 14,481 contracts trading so far today, representing approximately 1.4 million underlying shares of FB.
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Especially high volume was seen for the $57.50 strike call option expiring February 15, 2019 , with 1,288 contracts trading so far today, representing approximately 128,800 underlying shares of R. Below is a chart showing R's trailing twelve month trading history, with the $57.50 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 15,530 contracts, representing approximately 1.6 million underlying shares or approximately 74.4% of DE's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $157.50 strike put option expiring February 15, 2019 , with 1,237 contracts trading so far today, representing approximately 123,700 underlying shares of DE. Particularly high volume was seen for the $165 strike call option expiring February 15, 2019 , with 14,481 contracts trading so far today, representing approximately 1.4 million underlying shares of FB.
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4d441985-8c9a-4d89-bbda-c683fd7af9f7
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721861.0
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2019-02-13 00:00:00 UTC
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5 Must See Earnings Charts
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https://www.nasdaq.com/articles/5-must-see-earnings-charts-2019-02-13
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Earnings season continues to roll on with over 500 companies expected to report this week.
This week's companies are in a bunch of industries including marijuana, retail, semiconductors and consumer discretionary such as beverages and restaurants.
Additionally, next week, a few of the big cap retailers will be reporting. How was their holiday season? Is Amazon still pressuring them?
These 5 companies have solid earnings track records but the Street will also be watching them for their 2019 guidance.
5 Must See Earnings Charts
Cisco CSCO hasn't missed since Zacks data began in 2015. Shares have bounced off their 2018 lows and look like they want to challenge the 5-year highs. Will another beat lead to a stock break out?
Fossil FOSL has beat 6 quarters in a row. Shares staged a mini-rally in 2018 but have since lost some of that upward momentum. Are the shares headed back to the 5-year lows?
Coca-Cola KO has only missed one time in 5 years. That's an impressive streak. These shares were breaking out before the 2018 hit the market. Can they resume their upward momentum?
Deere DE has missed three quarters in a row after going years with a perfect record. However, the misses haven't really hurt the stock as it's still trading near its 5-year high. Will it turn it around this quarter?
Walmart WMT has beat three quarters in a row. Shares are off their 2018 lows but they will need some good news to get back to those 5-year highs. Will Walmart surprise the Street with a really good fourth quarter?
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
Coca-Cola Company (The) (KO): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Fossil Group, Inc. (FOSL): Free Stock Analysis Report
Walmart Inc. (WMT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it. Are the shares headed back to the 5-year lows? Deere DE has missed three quarters in a row after going years with a perfect record.
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Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Fossil Group, Inc. (FOSL): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report To read this article on Zacks.com click here. Are the shares headed back to the 5-year lows? Deere DE has missed three quarters in a row after going years with a perfect record.
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Click to get this free report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Coca-Cola Company (The) (KO): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Fossil Group, Inc. (FOSL): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report To read this article on Zacks.com click here. Are the shares headed back to the 5-year lows? Deere DE has missed three quarters in a row after going years with a perfect record.
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Are the shares headed back to the 5-year lows? Deere DE has missed three quarters in a row after going years with a perfect record. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
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718e3ee9-38d0-46d8-b6ca-b42213a17763
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721862.0
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2019-02-13 00:00:00 UTC
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Deere Stock Dips on Downgrade
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DE
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https://www.nasdaq.com/articles/deere-stock-dips-downgrade-2019-02-13
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Deere stock is down on Wednesday after a downgrade from Bank of America Merrill Lynch analyst Ross Gilardi.
Source: Ford8n via Flickr (Modified)
The downgrade has the Bank of America Merrill Lynch analyst dropping Deere (NYSE: DE ) stock from a rating of "Buy" to "Neutral." To go along with this, Gilardi dropped his price target for the stock to $170.
The price target drop to $170 is still above Deere stock's trading price when markets closed on Tuesday. The stock was trading at $165.18 at that time. However, any decrease to a price target is bad news for a stock.
It is also worth noting that the note from the Bank of America Merrill Lynch analyst also includes a lower earnings per share estimate for 2019. This has him expecting earnings per share of $11.25 for the year. Wall Street is looking for DE to report earnings per share of $12.84 in 2019.
"If the tariffs aren't lifted, and China continues to shun U.S. soybean imports, U.S. farmers will face rising uncertainty into spring planting as U.S. soybean inventories are already soaring," Gilardi says in a note obtained by CNBC . "In our view, this is a real risk to farm equipment demand in the second half of 2019."
9 U.S. Stocks That Are Coming to Life Again
While Deere stock has been performing well lately, several analysts are expecting it to drop down. This is based on trends between DE stock and Caterpillar (NYSE: CAT ) stock over the last decade. Typically, when one jumps head of the other, it comes back down after a few months.
DE stock was down 1% as of Wednesday afternoon.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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The post Deere Stock Dips on Downgrade appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Source: Ford8n via Flickr (Modified) The downgrade has the Bank of America Merrill Lynch analyst dropping Deere (NYSE: DE ) stock from a rating of "Buy" to "Neutral." Compare Brokers The post Deere Stock Dips on Downgrade appeared first on InvestorPlace . InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere stock is down on Wednesday after a downgrade from Bank of America Merrill Lynch analyst Ross Gilardi.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere stock is down on Wednesday after a downgrade from Bank of America Merrill Lynch analyst Ross Gilardi. Source: Ford8n via Flickr (Modified) The downgrade has the Bank of America Merrill Lynch analyst dropping Deere (NYSE: DE ) stock from a rating of "Buy" to "Neutral." The price target drop to $170 is still above Deere stock's trading price when markets closed on Tuesday.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere stock is down on Wednesday after a downgrade from Bank of America Merrill Lynch analyst Ross Gilardi. Source: Ford8n via Flickr (Modified) The downgrade has the Bank of America Merrill Lynch analyst dropping Deere (NYSE: DE ) stock from a rating of "Buy" to "Neutral." 9 U.S. Stocks That Are Coming to Life Again While Deere stock has been performing well lately, several analysts are expecting it to drop down.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deere stock is down on Wednesday after a downgrade from Bank of America Merrill Lynch analyst Ross Gilardi. Source: Ford8n via Flickr (Modified) The downgrade has the Bank of America Merrill Lynch analyst dropping Deere (NYSE: DE ) stock from a rating of "Buy" to "Neutral." The price target drop to $170 is still above Deere stock's trading price when markets closed on Tuesday.
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454ca5b8-6677-4585-948d-8d533367c93f
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721863.0
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2019-02-12 00:00:00 UTC
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XLI, UPS, CSX, DE: Large Outflows Detected at ETF
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DE
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https://www.nasdaq.com/articles/xli-ups-csx-de-large-outflows-detected-etf-2019-02-12
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Industrial Select Sector SPDR Fund (Symbol: XLI) where we have detected an approximate $99.2 million dollar outflow -- that's a 1.0% decrease week over week (from 140,830,000 to 139,480,000). Among the largest underlying components of XLI, in trading today United Parcel Service Inc (Symbol: UPS) is up about 0.7%, CSX Corp (Symbol: CSX) is up about 1.3%, and Deere & Co. (Symbol: DE) is up by about 1.5%. For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average:
Looking at the chart above, XLI's low point in its 52 week range is $59.92 per share, with $80.41 as the 52 week high point - that compares with a last trade of $74.22. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Industrial Select Sector SPDR Fund (Symbol: XLI) where we have detected an approximate $99.2 million dollar outflow -- that's a 1.0% decrease week over week (from 140,830,000 to 139,480,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average: Looking at the chart above, XLI's low point in its 52 week range is $59.92 per share, with $80.41 as the 52 week high point - that compares with a last trade of $74.22. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Industrial Select Sector SPDR Fund (Symbol: XLI) where we have detected an approximate $99.2 million dollar outflow -- that's a 1.0% decrease week over week (from 140,830,000 to 139,480,000).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Industrial Select Sector SPDR Fund (Symbol: XLI) where we have detected an approximate $99.2 million dollar outflow -- that's a 1.0% decrease week over week (from 140,830,000 to 139,480,000). For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average: Looking at the chart above, XLI's low point in its 52 week range is $59.92 per share, with $80.41 as the 52 week high point - that compares with a last trade of $74.22. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average: Looking at the chart above, XLI's low point in its 52 week range is $59.92 per share, with $80.41 as the 52 week high point - that compares with a last trade of $74.22. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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72daf09c-9d13-43bb-96fa-a6e8dcec68e4
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721864.0
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2019-02-11 00:00:00 UTC
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Deere (DE) to Report Q1 Earnings: What's in the Offing?
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DE
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https://www.nasdaq.com/articles/deere-de-to-report-q1-earnings%3A-whats-in-the-offing-2019-02-11
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nan
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Deere & CompanyDE is scheduled to report first-quarter fiscal 2019 results on Feb 15, before the market opens.
In the las t report ed quarter, Deere reported earnings of $2.30 per share, which missed the Zacks Consensus Estimate by around 6%. In the trailing four quarters, the company missed the Zacks Consensus Estimate on three occasions while surpassing in one. The company recorded average negative earnings surprise of 1.26% over the trailing four quarters.
Let's see how things are shaping up prior to this announcement.
Deere & Company Price and EPS Surprise
Deere & Company price-eps-surprise | Deere & Company Quote
Key Factors to Consider
In the Agriculture and Turf segment, replacement demand continues to drive order activity. The Zacks Consensus Estimate indicates that net sales of Deere's Agriculture and Turf equipment segment will reach $4.4 billion in the quarter to be reported, rising around 4% year over year. The Agriculture and Turf equipment segment's operating income is projected at $424 million, up from the $387 million reported in the prior-year quarter.
The Construction & Forestry segment will benefit from continued robust demand for equipment, as well as the Wirtgen acquisition. The economic environment for the construction, forestry and road building industries looks solid and continues to support elevated demand for both new and used equipment. The Zacks Consensus Estimate for Construction & Forestry segment sales is pegged at $2.45 billion for the to-be-reported quarter, reflecting year-over-year improvement of 41%. The Construction & Forestry segment is expected to report operating profit of $247 million, a substantial improvement over $32 million in prior-year quarter.
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) are projected at $6.89 billion, a 15% improvement year over year.
The estimate for the Financial Services segment's sales is $817 million, reflecting year-over-year increase of 5%.
Notably, the Zacks Consensus Estimate for earnings per share is pegged at $1.80 for the to-be-reported quarter, indicating year-over-year growth of 37.4%. Deere's pricing actions are likely to mitigate the impact of rising raw material prices, higher freight cost and elevated expenses. Further, improved operational performance, cost management and continued investment in innovative technology and solutions will drive the company's performance.
Earnings Whispers
Our proven model does not conclusively show that Deere is likely to beat on earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate Estimate of $1.74 and the Zacks Consensus Estimate of $1.80, is -3.40%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Deere currently carries a Zacks Rank of 3. While this increases the predictive power of ESP, we also need to have a positive ESP to be confident about an earnings surprise.
It should be noted that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Share Price Performance
Deere's shares have gained 2.3% over the past year against the industry 's decline of 0.7%.
Stocks Worth a Look
Here are a few stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Lincoln Electric Holdings, Inc. LECO has an Earnings ESP of +1.42% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .
Zebra Technologies Corporation ZBRA has an Earnings ESP of +5.18% and a Zacks Rank #3.
LSC Communications LKSD has an Earnings ESP of +9.09% and a Zacks Rank #3.
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Lincoln Electric Holdings, Inc. (LECO): Free Stock Analysis Report
Deere & Company (DE): Get Free Report
Zebra Technologies Corporation (ZBRA): Free Stock Analysis Report
LSC Communications (LKSD): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The economic environment for the construction, forestry and road building industries looks solid and continues to support elevated demand for both new and used equipment. Deere & CompanyDE is scheduled to report first-quarter fiscal 2019 results on Feb 15, before the market opens. In the las t report ed quarter, Deere reported earnings of $2.30 per share, which missed the Zacks Consensus Estimate by around 6%.
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The Zacks Consensus Estimate indicates that net sales of Deere's Agriculture and Turf equipment segment will reach $4.4 billion in the quarter to be reported, rising around 4% year over year. Click to get this free report Lincoln Electric Holdings, Inc. (LECO): Free Stock Analysis Report Deere & Company (DE): Get Free Report Zebra Technologies Corporation (ZBRA): Free Stock Analysis Report LSC Communications (LKSD): Free Stock Analysis Report To read this article on Zacks.com click here. Deere & CompanyDE is scheduled to report first-quarter fiscal 2019 results on Feb 15, before the market opens.
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In the las t report ed quarter, Deere reported earnings of $2.30 per share, which missed the Zacks Consensus Estimate by around 6%. The Zacks Consensus Estimate indicates that net sales of Deere's Agriculture and Turf equipment segment will reach $4.4 billion in the quarter to be reported, rising around 4% year over year. Click to get this free report Lincoln Electric Holdings, Inc. (LECO): Free Stock Analysis Report Deere & Company (DE): Get Free Report Zebra Technologies Corporation (ZBRA): Free Stock Analysis Report LSC Communications (LKSD): Free Stock Analysis Report To read this article on Zacks.com click here.
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Deere & Company Price and EPS Surprise Deere & Company price-eps-surprise | Deere & Company Quote Key Factors to Consider In the Agriculture and Turf segment, replacement demand continues to drive order activity. Deere & CompanyDE is scheduled to report first-quarter fiscal 2019 results on Feb 15, before the market opens. In the las t report ed quarter, Deere reported earnings of $2.30 per share, which missed the Zacks Consensus Estimate by around 6%.
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331a8f8f-7b43-446b-9c35-862cb9dab6af
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721865.0
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2019-02-08 00:00:00 UTC
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Stock Market News For Feb 8, 2019
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https://www.nasdaq.com/articles/stock-market-news-for-feb-8-2019-2019-02-08
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Wall Street closed sharply lower on Thursday after the United States - China trade dispute intensified. The broad-based market decline was further aggravated after the European Commission lowering its economic growth forecast for the European Union. All three major stock indexes finished in the red.
The Dow Jones Industrial Average (DJI) closed at 25,169.53, declining 0.9% or 220.77 points. Meanwhile, the S&P 500 Index (INX) also decreased 0.9% to close at 2,706.05. The Nasdaq Composite Index (IXIC) closed at 7,288.35, losing 1.2%. A total of 7.82 billion shares were traded on Thursday, higher than the last 20-session average of 7.49 billion shares. Decliners outnumbered advancers on the NYSE by 2.34-to-1 ratio. On the Nasdaq, decliners had an edge over advancers by 2.08-to-1 ratio. The CBOE VIX increased 6.4% to close at 16.37.
How Did the Benchmarks Perform?
The Dow ended in negative territory for second straight-day. Notably, 27 stocks of the 30-stocks blue-chip index finished in the red while three ended in the red. The tech-heavy Nasdaq Composite finished in the red after three-straight days, due to weak performance by large-cap tech stocks.
The S&P 500 closed in negative territory for second consecutive days. The Energy Select Sector SPDR (XLE) declined significantly by 2.2% while Utilities Select Sector SPDR (XLU) gained 1.3%. Notably, nine out of 11 sectors of the benchmark index closed in the red while the remaining two finished in the green.
Trade Conflict Intensifies
On Feb 7, President Donald Trump said that he would not meet with his Chinese counterpart Xi Jinping before Mar 1. Notably, the two countries are currently going through a 90-day truce period during which they will refrain from imposing fresh tariffs on each other. The deadline will come to an end on Mar 1.
Moreover, National Economic Council Director Larry Kudlow said that while the United States and China are trying earnestly to resolve ongoing trade disputes between them, mutually satisfying solution is miles away.
In its State of the Union address on Feb 6, Trump mentioned that any agreement should "include real, structural change to end unfair trade practices, reduce our chronic trade deficit and protect American jobs." The primary concern of the Trump administration stems from the apprehension that China is stealing intellectual property from U.S. companies by unfair means.
Consequently, shares of trade-sensitive stocks such as The Boeing Co. BA , Caterpillar Inc. CAT and Deere & Co. DE plummeted 1%, 1.4% and 1.2%. The Boeing carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 RanK (Strong Buy) stocks here.
EC Reduces Eurozone Growth Projections
On Feb 6, the European Commission lowered its 2019 growth projection for the19-member Eurozone from 1.9% in November to 1.3%. The growth rate for 2020 has been projected at 1.6%. The EC cited weaker demand for its exports from China and geopolitical issues related to Brexit are the root cause for lowering its growth target. Moreover, both Germany and Italy, the two largest economies of the Eurozone, are likely to face several headwinds in 2019.
Economic Data
The Department of Labor reported that initial jobless claims decreased by 19,000 to a seasonally adjusted 234,000 for the week ended Feb 2. However, the figure was higher than the consensus estimate of 224,000.
Stock That Made Headline
Fiserv Q4 Earnings In Line, Revenues Beat Estimates
Fiserv Inc.'s FISV fourth-quarter 2018 earnings matched the Zacks Consensus Estimate while revenues surpassed the same. ( Read More )
Republic Services Beats on Q4 Earnings, Lags Revenues
Republic Services Inc. RSG reported mixed fourth-quarter 2018 results wherein earnings surpassed the Zacks Consensus Estimate but revenues lagged the same. ( Read More )
Union Pacific Hikes Dividend by 10%, Unveils Buyback Plan
Union Pacific Corp. UNP announced that its board of directors has approved a new share repurchase program to buy up to 150 million of its common stock. ( Read More )
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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Union Pacific Corporation (UNP): Free Stock Analysis Report
The Boeing Company (BA): Get Free Report
Caterpillar Inc. (CAT): Get Free Report
Deere & Company (DE): Get Free Report
Fiserv, Inc. (FISV): Free Stock Analysis Report
Republic Services, Inc. (RSG): Get Free Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Moreover, National Economic Council Director Larry Kudlow said that while the United States and China are trying earnestly to resolve ongoing trade disputes between them, mutually satisfying solution is miles away. The EC cited weaker demand for its exports from China and geopolitical issues related to Brexit are the root cause for lowering its growth target. Economic Data The Department of Labor reported that initial jobless claims decreased by 19,000 to a seasonally adjusted 234,000 for the week ended Feb 2.
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Stock That Made Headline Fiserv Q4 Earnings In Line, Revenues Beat Estimates Fiserv Inc.'s FISV fourth-quarter 2018 earnings matched the Zacks Consensus Estimate while revenues surpassed the same. Click to get this free report Union Pacific Corporation (UNP): Free Stock Analysis Report The Boeing Company (BA): Get Free Report Caterpillar Inc. (CAT): Get Free Report Deere & Company (DE): Get Free Report Fiserv, Inc. (FISV): Free Stock Analysis Report Republic Services, Inc. (RSG): Get Free Report To read this article on Zacks.com click here. Wall Street closed sharply lower on Thursday after the United States - China trade dispute intensified.
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Stock That Made Headline Fiserv Q4 Earnings In Line, Revenues Beat Estimates Fiserv Inc.'s FISV fourth-quarter 2018 earnings matched the Zacks Consensus Estimate while revenues surpassed the same. Click to get this free report Union Pacific Corporation (UNP): Free Stock Analysis Report The Boeing Company (BA): Get Free Report Caterpillar Inc. (CAT): Get Free Report Deere & Company (DE): Get Free Report Fiserv, Inc. (FISV): Free Stock Analysis Report Republic Services, Inc. (RSG): Get Free Report To read this article on Zacks.com click here. Wall Street closed sharply lower on Thursday after the United States - China trade dispute intensified.
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Meanwhile, the S&P 500 Index (INX) also decreased 0.9% to close at 2,706.05. A total of 7.82 billion shares were traded on Thursday, higher than the last 20-session average of 7.49 billion shares. Wall Street closed sharply lower on Thursday after the United States - China trade dispute intensified.
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721866.0
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2019-02-07 00:00:00 UTC
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Noteworthy Thursday Option Activity: FIS, DE, TPR
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity-fis-de-tpr-2019-02-07
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Fidelity National Information Services Inc (Symbol: FIS), where a total of 7,751 contracts have traded so far, representing approximately 775,100 underlying shares. That amounts to about 52.5% of FIS's average daily trading volume over the past month of 1.5 million shares. Particularly high volume was seen for the $105 strike put option expiring March 15, 2019 , with 3,875 contracts trading so far today, representing approximately 387,500 underlying shares of FIS. Below is a chart showing FIS's trailing twelve month trading history, with the $105 strike highlighted in orange:
Deere & Co. (Symbol: DE) options are showing a volume of 9,951 contracts thus far today. That number of contracts represents approximately 995,100 underlying shares, working out to a sizeable 47.7% of DE's average daily trading volume over the past month, of 2.1 million shares. Particularly high volume was seen for the $165 strike call option expiring January 17, 2020 , with 1,217 contracts trading so far today, representing approximately 121,700 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $165 strike highlighted in orange:
And Tapestry Inc (Symbol: TPR) saw options trading volume of 16,572 contracts, representing approximately 1.7 million underlying shares or approximately 47.1% of TPR's average daily trading volume over the past month, of 3.5 million shares. Especially high volume was seen for the $30 strike put option expiring January 17, 2020 , with 1,852 contracts trading so far today, representing approximately 185,200 underlying shares of TPR. Below is a chart showing TPR's trailing twelve month trading history, with the $30 strike highlighted in orange:
For the various different available expirations for FIS options , DE options , or TPR options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $105 strike put option expiring March 15, 2019 , with 3,875 contracts trading so far today, representing approximately 387,500 underlying shares of FIS. Particularly high volume was seen for the $165 strike call option expiring January 17, 2020 , with 1,217 contracts trading so far today, representing approximately 121,700 underlying shares of DE. Especially high volume was seen for the $30 strike put option expiring January 17, 2020 , with 1,852 contracts trading so far today, representing approximately 185,200 underlying shares of TPR.
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Below is a chart showing FIS's trailing twelve month trading history, with the $105 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 9,951 contracts thus far today. Particularly high volume was seen for the $165 strike call option expiring January 17, 2020 , with 1,217 contracts trading so far today, representing approximately 121,700 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $165 strike highlighted in orange: And Tapestry Inc (Symbol: TPR) saw options trading volume of 16,572 contracts, representing approximately 1.7 million underlying shares or approximately 47.1% of TPR's average daily trading volume over the past month, of 3.5 million shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Fidelity National Information Services Inc (Symbol: FIS), where a total of 7,751 contracts have traded so far, representing approximately 775,100 underlying shares. Below is a chart showing DE's trailing twelve month trading history, with the $165 strike highlighted in orange: And Tapestry Inc (Symbol: TPR) saw options trading volume of 16,572 contracts, representing approximately 1.7 million underlying shares or approximately 47.1% of TPR's average daily trading volume over the past month, of 3.5 million shares. Especially high volume was seen for the $30 strike put option expiring January 17, 2020 , with 1,852 contracts trading so far today, representing approximately 185,200 underlying shares of TPR.
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Particularly high volume was seen for the $105 strike put option expiring March 15, 2019 , with 3,875 contracts trading so far today, representing approximately 387,500 underlying shares of FIS. Particularly high volume was seen for the $165 strike call option expiring January 17, 2020 , with 1,217 contracts trading so far today, representing approximately 121,700 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $165 strike highlighted in orange: And Tapestry Inc (Symbol: TPR) saw options trading volume of 16,572 contracts, representing approximately 1.7 million underlying shares or approximately 47.1% of TPR's average daily trading volume over the past month, of 3.5 million shares.
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2019-02-04 00:00:00 UTC
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Luminex Corp (LMNX) Q4 2018 Earnings Conference Call Transcript
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https://www.nasdaq.com/articles/luminex-corp-lmnx-q4-2018-earnings-conference-call-transcript-2019-02-04
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Luminex Corp (DE) (NASDAQ: LMNX)
Q4 2018 Earnings Conference Call
Feb. 04, 2019 , 4:30 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good day, ladies and gentlemen, and welcome to the Luminex Corporation's Fourth Quarter and Full-Year 2018 Earning Conference Call. My name is Sonia and I'll be your coordinator for today. Today's call is being recorded. At this time, all participants are in a listen-only mode. Following the prepared remarks, there will be a question-and-answer session. (Operator Instructions) I would now like to turn the call over to Harriss Currie, Senior Vice President and Chief Financial Officer, for opening remarks. Please proceed.
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
Good afternoon and welcome to Luminex Corporation's conference call to discuss our fourth quarter 2018 and full year financial and operational results. On our call today with me is Homi Shamir, President and Chief Executive Officer. We'll be following our standard standard agenda, Homi will review our corporate highlights, I'll review the financial performance and after that we will open the call for your questions. As a reminder, today's conference call is being recorded and a replay will be available for six months on the Investor Relations section of our website.
Certain statements made during the course of today's call may not be purely historical and consequently maybe forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Company claims the protections provided by Section 21E of the Securities Exchange Act for such statements. These forward-looking statements speak only as of the date hereof and are based on our current beliefs and expectations and are subject to known or unknown risks and uncertainties, some of which are beyond the Company's control, that could cause actual results or plans to differ materially and adversely from those anticipated in the forward-looking statements. Factors that could cause or contribute to such differences are detailed in our Form 10-K for the year ended December 31 and our quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.
We encourage you to review these documents and we undertake no obligation to update these forward-looking statements. Also, certain non-GAAP financial measures, as defined by SEC Regulation G, may be covered in this call. To the extent that any non-GAAP financial measures are covered, a presentation of and reconciliation to the most directly comparable GAAP financial measures will be included in our earnings release, which is available on our website in accordance with Regulation G.
I'll now turn the call over to our President and CEO, Homi Shamir.
Nachum "Homi" Shamir -- President and Chief Executive Officer
Thank you, Harriss. Good afternoon and welcome to our fourth quarter and full-year 2018 earnings call . We are extremely pleased with the overall performance of our diversified businesses. We achieved the top end of our full year revenue guidance and put some of our cash to use to obtain high-value asset that diversified our businesses even further.
Our 2018 financial performance was strong. Revenue was up by 3% but when we adjust for the losses of approximately $30 (ph) million of LabCorp revenue, our total revenue grew by almost double-digit. This solid growth was driven by several factors. Our LTG revenue stream grew by 5% for the full year and extremely impressive 23% for the fourth quarter. This success was driven by royalty growth in excess of 10% for the full year with double-digit growth in both royalties and consumable in the fourth quarter.
None of that was a surprise as we anticipate substantial quarter-over-quarter consumable growth as our partner end-user sales continue to rise as they secure the target market with our unique technology. In fact, end-user sales reported by our partners totaled approximately $532 million. This is one of the primary advantages of our partnership model, allowing market leaders to carry our products to their customers.
Our MDx franchise revenue was up by 1% overall, but when adjusted for the LabCorp departure of approximately $30 million, it actually grew by 13%. The real highlights continues to come from we sell our sample-to-answer revenue stream in which assay revenue grew by 40% for the quarter and 36% for the full year. We continue expanding our sample-to-answer base with growth in contracted system of approximately 270 units during the year. As a reminder, a contracted system is a contractual minimum use requirements usually for three or more years.
Utilization of both our ARIES and VERIGENE system per customer increased to 53,000 and 109,000, respectively, for the full year. At the end of the year, we had about 600 active sample-to-answer customer, an increase year-over-year of 33%. We begin 2019 with a robust R&D pipeline. We made progress with both the VERIGENE II system in the first two assay, the enteric panel and the respiratory panel. The enteric panel clinical trial is almost complete and our respiratory panel clinical trial was started at the beginning of this year.
Additionally, we are wrapping our clinical trail form MRCA on our ARIES system. Our updated xMAP system SENSIPLEX is approaching partner testing and should be ready for commercial launch by early 2020. It is important to note that our partners will still need to validate the backwards capability of previously developed kits and plan the launches of the new kit that will be able to take advantages of the increased sensitivity of these next-generation xMAP system. And we are very excited about our longer-term product pipeline with both additional assay offerings and system enhancements coming in MDx, LTG and flow cytometry.
Another exciting development that happened on the last day of the year was the closing of the acquisition of the flow cytometry asset of MilliporeSigma. This acquisition, our first in the life science research space, but probably not our last one, will provide an opportunity for us to sell directly to customer who have adopted our xMAP technology, further diversifying our business with complementary products.
With this acquisition, we will be able to take high quality and differentiated flow cytometry with established brand recognition to steadily growing marketplace. One of our primary goals is to develop a biotic (ph) content that can be both support the placement of our imaging base product while involving the flow cytometry revenue stream to generate a much larger recurring component. We believe that this acquisition should add approximately $45 million of revenue to our top line in 2019 and be accretive by year-end.
Finally, I would like to briefly discuss my expectation for 2019. 2019 will be a transitional year for Luminex that lays the groundwork for continued double-digit growth in future years. In 2019, we will adjust the extent of the intense revenue concentration we have had with LabCorp in previously years, execute on both the integration and growth of our recent flow cytometry addition, prepare and launch of VERIGENE II product and make progress toward the launch of SENSIPLEX in 2020. Accomplishing those in both in transition state will give us a solid foundation for growth in 2020 and beyond.
Now, Harriss will review our financial results in more detail.
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
Thanks, Homi. As Homi mentioned, we had a strong year and strong fourth quarter revenues, absent the effects of the LabCorp departure. Consolidated revenue for the fourth quarter was $81.1 million, up 4% for the quarter and up 22%, excluding LabCorp. For the year, revenue was up 3% or 9%, excluding LabCorp.
Our LTG revenue stream was $41.5 million for the quarter and $149 million for the year, up 23% and 5% for the quarter and year, respectively, driven by double-digit growth in royalty revenue for both the quarter and year, in addition to strong consumable growth with double-digit increases in the quarter. Our molecular diagnostic revenue stream was approximately $39 million for the quarter and $164 million for the year, down 11% for the quarter and up 1% for the year, primarily driven by the LabCorp departure. Excluding LabCorp, this revenue stream was up 21% for the quarter and 13% for the year. Performance here was driven by the continued success of our sample-to-answer franchise, which was up 41% and 34% for the quarter and year, respectively.
For our sample-to-answer products, both the number of active customers and the utilization per customer has continued to increase. For the fourth quarter, the annual utilization rate per customer for our VERIGENE products increased to $109,000, up 10% from the prior year quarter and for our ARIES product line average annual utilization was $53,000, up 14% from the prior year.
Turning to our revenue line items, during the fourth quarter we placed 268 multiplex systems, not including ARIES and VERIGENE systems, within the high end of our communicated expectation of 225 to 275 per quarter. Included in system revenue are sales of our xMAP systems, sales of both our ARIES and VERIGENE systems, and a reagent rental allocation for those systems placed under reagent rental agreements.
Consumable revenues were up more than 50% for the quarter and 2% for the year, with the quarter increase driven by higher bulk purchases by a few of our large partners compared to the prior year quarter. This phenomenon was not unexpected. As we've indicated a number of times, the consumable revenues for 2018 were expected to be weighted toward the back half of the year relative to 2017 where they were weighted in the front half of the year.
Royalty revenue grew 19% and 10% for the quarter and full year, respectively. This reflected an increase in audit findings, minimum royalty payments and in base end-user sales reported by our partners. Base end-user sales were up 12% and 6% for the quarter and year, not including audit adjustments.
Similar to our molecular diagnostics revenue stream, assay revenues were down 12% for the quarter and up 1% for the year, primarily driven by the reduction in LabCorp. Excluding this impact, assay revenue was up 22% and 14% for the quarter and full year, respectively, predominantly driven by growth in our sample-to-answer assays previously discussed.
Now turning to the income statement, we posted gross margins of 60% and 62% for the quarter and full year, down by 4 percentage points from the fourth quarter of 2017 and 3 percentage points from the prior full year. This decline is primarily attributable to the reduction in LabCorp Women's Health products as these assays typically carry a much higher gross margin than our corporate averages. We continue to focus on improvement of our sample-to-answer margins through both volume increase and cost efficiency.
We continued to control our operating expenses, (inaudible) decline in both R&D and SG&A expenses for the year as compared to our planned levels. Relative to the prior year, operating expenses were moderately higher to support our research and development initiatives, and sales and marketing efforts. Overall, OpEx was up 4% relative to the prior year, but included approximately $2.7 million of acquisition-related expenses in the current year.
Operating profit declined $9.3 million for the year to $27.8 million or 9% operating margin for the year, primarily due to the aforementioned gross margin compression and operating expense increases. Our effective tax rate for the fourth quarter was 337% as compared to 132% in the fourth quarter of 2017. As a reminder, the quarterly effective tax rate typically represents adjustments necessary to arrive at the appropriate year-to-date rate that reflects current expectations for the year.
As you can see from our financials, the current expectation for our 2018 effective rate was 35%, which incorporated adjustments to one-time impacts of the US tax reform in the current quarter and adjustments to our overall tax expectations based on jurisdictional distribution of revenues and expenses. Included in our one-time impacts for the current quarter are $1.8 million of provisional updates to the transition tax expenses stemming from the Tax Cuts and Jobs Act.
The prior year quarter also included tax expenses driven by the Tax Cuts and Jobs Act of approximately $7 million related to repatriation charges, associated with foreign earnings not previously taxed by the US, $3 million for revaluation of deferred US tax assets and a $3 million adjustment of Canadian deferred tax liabilities, partially offset by tax benefit for the release of valuation allowances on Dutch and acquired US losses.
The balance sheet remains strong with solid DSOs on accounts receivable and over $76 million in cash and investments, after absorbing the recent purchase of the flow cytometry business from Millipore for $65.4 million net of cash received and additional payments for remaining inventory at a future time. We generated approximately $50 million of cash in the year before the acquisition and inclusive of the payments o f dividends of $10.6 million during the year.
As we've indicated previously, for 2019, we expect total Luminex revenue to be between $337 million and $343 million, an approximate 8% increase over 2018 total revenue, that includes a loss of approximately $35 million of LabCorp revenue. Excluding the loss of LabCorp revenue, our base business was approximately $280 million in 2018 as we expected to grow to approximately $295 million with all of the growth coming from the MDx revenue streams as we expect our partner business to be flat to down slightly for the year.
Additionally, we expect our sample-to-answer franchise, which contributed $62.5 million of revenue in 2018 to grow by approximately 35% in 2019 and end the year at or close to the $100 million run rate we've targeted. It's interesting to note that we anticipate our sample-to-answer revenue stream to be approximately $20 million in the first quarter of this year in spite of a relatively weak flu season.
From a line item standpoint, we expect system sales to be down by up to $5 million as a result of the completion of the One Lambda FLEXMAP 3D replacement. Our xMAP system placement expectations remain between 225 and 275 per quarter. Consumables are also expected to be down slightly from the prior year as a result of some large partner purchases in 2018 that won't repeat the same level in 2019. Base royalty revenue is expected to be up by approximately 5%, reflecting continued expansion of utilization of our technology in the marketplace, in line with the growth rates of the markets in which our partners participate.
And finally, assay revenue across all of our sample-to-answer and non-automated product lines, not including the LabCorp departure, is expected to be up in the double-digits. We expect our flow cytometry business to contribute approximately $45 million this year with system sales and service accounting for about 90% of the total. As we've mentioned, ultimate expansion of the recurring revenue within the flow space is a strategic priority.
For the first quarter, we expect to deliver total revenue of between $82 million and 84 million, with 10% to 15% coming from our new flow revenue stream. Relative to the fourth quarter of 2018, we expect system revenue to be up with the base business down slightly but elevated by the contribution from the flow revenue stream. Consumable should be down from the fourth quarter as we had a very good fourth quarter for consumable revenue and the quarter-to-quarter volatility remains with us.
Base royalties will be up, but total royalty should be down slightly as a result of audit findings included in fourth quarter royalty revenue and total assay revenue up about $1 million for the fourth quarter across the entire portfolio. As I mentioned previously, the impact of the current flu season is nominal. There were some final LabCorp buys totaling approximately $1 million included in fourth quarter revenue.
With respect to profitability, we could see gross margins fall into the higher 50s during the quarter as a result of several factors. First and most obvious is the LabCorp departure. Second, as the growth is derived primarily from our sample-to-answer franchise and the presence of the new flow revenues, both of which have gross margins below our recent corporate averages, it could account for over half of our total revenue for the quarter. And thirdly, as a result of accounting rules, all acquired flow inventory has been mark-to-market, so the gross margins on the flow revenues will be artificially low until we have exhausted all the acquired inventory.
Obviously this margin compression affects overall profitability and although we expect to remain cash flow positive for the year, we could experience several quarters of breakeven or a loss until such time as the volumes and margins of the flow business have returned to a steady state, integration activity has been completed and overall volumes across the business rise further, giving us the benefit of economies of scale.
One thing to keep in mind is that mix is still a significant driver to our ultimate reported gross margins and that we still experience quarter-to-quarter volatility in mix which can push gross margins up or down depending on the relative line item contributions. We have a lot of clinical trial activity scheduled during 2019, and as a result R&D expenses will be elevated from 2018, further affecting current profitability. We do not take this lightly and are committed to returning to sustainable and growing profitability by the end of the year. Finally, and as Homi mentioned, I want to reiterate that we plan to return to double-digit revenue growth in 2020 and beyond with acceleration of profitability and cash flow.
Now I'd like to turn it back over to Homi for some final comments.
Nachum "Homi" Shamir -- President and Chief Executive Officer
Thanks, Harriss. In closing, Luminex continued to demonstrate the power of its diversified businesses. Our model continues to drive meaningful growth as we remain committed to investing wisely in our product pipeline development across our entire businesses.
Just as a reminder, when I joined Luminex in the end of 2014, we reported revenue of $227 million with LabCorp accounting for more than 20% of our total revenue. As we enter 2019, with the midpoint of our guidance at $340 million, LabCorp will likely account for approximately $12 million of our total revenue. I would call it an amazing transformation and execution of our strategic direction. Not including the LabCorp contribution, Luminex revenue by the end of 2019 will have grown by more than 20%, fueled by strong organic growth and successful acquisition.
2019 will be a challenging year for our bottom line as a result of the departure of LabCorp and our strong ongoing commitment to R&D and clinical trial expenditure. However, I'm quite confident that as we look beyond 2019, we will see Luminex returning to double-digit growth, improve our earning and gross margin back toward the level we have consistently delivered.
This ends our formal comments. Operator, please open the line for questions.
Questions and Answers:
Operator
Thank you. (Operator Instructions) Our first question comes from Dan Arias of Citigroup. Your line is now open.
Daniel Arias -- Citi Investment Research -- Analyst
Good afternoon guys. Thanks. Harriss, what's the 2018 revenue base for the Millipore product that you acquired, I know you said it was around $40 million, but I'm just curious if you're looking for double-digit growth off of $40 million or is something more like 5% to 7%, off of $42 million or $43 million?
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
So the expectation for the flow business is that based on the base it will grow at double digits. The number actually is a little less than $40 million, growing to the mid-40s that we talked about in the call.
Daniel Arias -- Citi Investment Research -- Analyst
Okay. And if I just think about your $100 million target for sample-to-answer, I don't want to split hairs here, but I believe in San Francisco you said that you were very confident in the run rate to get there and the comment just now was at or close to $100 million by the end of the year. So, just curious if there's anything moving around in the forecast there at all or whether that's just a couple of different words in the language?
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
Yes. I don't want to split hairs either but at would be right at $100 million, close to would be $102 million or $97 million, right. So, maybe I should have said at or around $100 million. We're confident based on our current trajectory that we're at very good shape there.
Nachum "Homi" Shamir -- President and Chief Executive Officer
As a matter of fact, we will be around $20 million running rate -- or $20 million not running rate for Q1 and we will climb from there. And when we talk in Q1, that there is no a flu season whatsoever, obviously compared to Q1 last year that we enjoyed a strong flu season. I think we are really on track to achieve the running rate of the $100 million.
Daniel Arias -- Citi Investment Research -- Analyst
Okay, just checking on that, and maybe if I could sneak one more in. On the sample-to-answer utilization, I don't know if you have the exact numbers there, but I'm just curious what percentage of the customers at this point are near that $109,000 average that you talked about, is it a fairly broad base of labs at that level or do you have a handful of really high volume users that are doing the heavy lifting, so to speak?
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
So let me give you some data that it's interesting but it tells you the danger of averages. I've said many times averages are dangerous thing, right. So for VERIGENE, we mentioned the average VERIGENE customer at the end of the year at about $109,000 over the past 12 months, the net average runs from an per customer number, adds from in excess of $0.5 million down to less than $10,000. So it's a very wide swath of utilization across our customer base that averages in at the $109,000s and slowly been inching up because all of our customers have been inching up as they annualize.
VERIGENE is the same way, an average of $53,000, but a very wide area -- sorry, a very wide and breadth of utilization from an excess of a $0.25 million a year, again down in that $5,000 to $10,000 range depending on the volumes within the hospitals. It's one of the again dangers of using averages, but the averages has been indicative because the average over time has slowly inched up as the overall utilization of all of our customers has creeped up as they annualize their utilization of our products.
Daniel Arias -- Citi Investment Research -- Analyst
Yes. Okay, that's helpful. Thank you, Harriss.
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
You bet.
Operator
Thank you. And our next question comes from Dan Leonard of Deutsche Bank. Your line is now open.
Daniel Leonard -- Deutsche Bank -- Analyst
Thank you. So first off, just trying to better understand some of the variables in the bridge between Q4 and Q1, and Harriss, I know you went over this in your prepared remarks. But it does seem like for the base Luminex business, it's a meaningful sequential step down versus what we've seen historically. And trying to understand the biggest parts of that, is it primarily consumables from Q4 to Q1, and would you classify the consumables bump in Q4 as year-end stocking or were there different dynamics?
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
So there's three big pieces. The first is we mentioned the One Lambda completion of FLEXMAP 3D replacement of previously installed LUMINEX 100/200 systems. So, One Lambda is essentially complete with buying FLEXMAP 3D systems as they had every quarter for the past three years. And so those purchases don't happen as we move into the end of the first quarter.
Secondly, consumables fall off. We had a very good consumable quarter in the fourth quarter and we -- the volatility remains, right, the bulk purchase phenomenon that we talk about over and over again continues. And so the expectations are that consumables drop. And thirdly, within royalties, there were some audit findings that were included in our fourth quarter royalties, that obviously don't repeat -- the run rate increase on the customers for which we found audit issues because what we found were products that -- that previously hadn't been tagged as a royalty bearing item and now they are tagged as royalty bearing, so that's why the base continues to rise. But overall, royalty revenue would dip a little bit.
So those are really the three big chunks that gets you to a decline from the fourth quarter to the first quarter in the base business. And then obviously we have the flow cytometry business and that lifts us back up.
Daniel Leonard -- Deutsche Bank -- Analyst
Okay, that's helpful. And then again using the fourth quarter as a base, but this time on gross margins, the 59.6% (ph) in gross margin for the quarter, as we think about what 2019 could look like, I appreciate all the qualitative variables, but given that Q4 had some LabCorp revenue in it that won't exist in 2019 and given the lower margin Millipore products, presumably we should think about modeling gross margin to be down from that fourth quarter run rate? And -- would you expect it to be down meaningfully or any finer point you can put on that on what a reasonable plan would look?
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
So, it definitely should be down and there's a couple -- again there's a couple of factors that play here on the consolidated gross margins. Number one is the reduction of LabCorp revenue. It's obviously not $35 million in a quarter, but it's a decent size number that carries margins at significantly higher than our corporate averages. So it pulls you down. There has been the addition of the flow business that effectively has gross margins approaching zero because of the fair value of the inventory until you work that inventory through your financials, you have what amounts to very, very low margin on the acquired business. But the same bucket of operating expenses and integration expenses go with and all the rest. So, you end up with both compression of gross margin and compression in the bottom line that flows through. So I don't know if that helps but...
Daniel Leonard -- Deutsche Bank -- Analyst
Well -- and you wouldn't plan to step out -- sorry, to back out the step-up related to purchase accounting on the Millipore inventory, you wouldn't plan to back that out as it was some kind of a non-GAAP reconciliation?
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
We'll sure -- we'll talk about it. We'll tell you what -- ultimately where margins would be on a pro forma basis without that included, certainly.
Daniel Leonard -- Deutsche Bank -- Analyst
Okay, thank you.
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
I can't give it to you right now, obviously.
Operator
Thank you. And our next question comes from Tycho Peterson of JPMorgan. Your line is now open.
Tycho Peterson -- JPMorgan -- Analyst
Hi, thanks. Couple of follow-ups. Harriss, I hate to ask this again, but can you quantify the stocking impact in the quarter, I know that was one of three things you called out, but can you quantify the stocking component?
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
Stocking for our sample-to-answer franchise?
Tycho Peterson -- JPMorgan -- Analyst
Yes.
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
Really not significant because the flu season -- we haven't seen significant demand as a result of the flu season coming in. We had some success with our sample-to-answer franchise. We continue to place systems. Homi mentioned the number of systems that we contracted during the quarter, the number of active customers continues to rise. So the stocking impact in the fourth quarter was minimal.
Tycho Peterson -- JPMorgan -- Analyst
And then on flow-through for VERIGENE and ARIES, I understand the challenges of averages but are you assuming that average does increase in 2019 and can you give us a rough sense of how you're thinking about annualized flow-through for both systems?
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
Sure. So the flow-through is a function of two things, obviously. Number one, the rate at which you add new customers because a new customer in the math is a customer that although you're looking at an annual figure is only in the number for at most three months, right, in a quarter. And so, you have customers of those 600 active customers that are counted in the number for both VERIGENE and ARIES that have been there for 12 months. Yes, while others have been there for nine months, for six months, for three months. We don't annualize those for the math. We look at all ordering customers and what they have ordered in the past 12 months.
And so for new customers, they've only ordered for a very short period of time. So as those customers annualize or get a full 12 months under their belt, we certainly would expect that number to continue to drift upwards. Now, if you add new customers quickly that certainly can mitigate the rate at which that number goes up. But fortunately, we have more customers annualizing than we do adding in a particular quarter and so thus the expectation that it drifts up.
Tycho Peterson -- JPMorgan -- Analyst
Okay. And the trend toward narrower panels and kind of flex, you don't see that as any headwinds in the near term?
Nachum "Homi" Shamir -- President and Chief Executive Officer
No, I mean basically we are planning to launch VERIGENE II in the second part of the year and I don't see any -- except maybe additional new customer, I don't see any headwind there. So we are in the direction there. And as we keep saying, we all the time we would like to minimize the impact of our existing customer and we would like to bring both the launch of the EP and the launch of the RP close together so they have more utilization on the system. So that's our strategy. As a matter of fact we have started training our sales force in a kick off meeting in about a week time and getting ready for the second part of the year to launch the product.
Tycho Peterson -- JPMorgan -- Analyst
All right. And then just one last one on the flow business, curious to what degree you're baking in kind of revenue synergies between LTG and flow? I know you've talked in the past about leveraging the sales force to go direct in the market with LTG and then combining (inaudible) imaging technology to enhance workflow. So are there things you're doing to kind of drive revenue synergies between the two businesses that kind of capture the guidance?
Nachum "Homi" Shamir -- President and Chief Executive Officer
No, not at all, Tycho. We are working now on the road map for the R&D and the product lines and the priority in the flow cytometry product line. We will be obviously seeing how we can leverage more than unity business either to using our big (inaudible) an example and working on that, but it will take us another quarter or two, not a quarter or two, or a quarter at least till we identify (ph) it and start moving the right resources into the right product. So at this stage we do not really anticipate any increase beyond the normal 10% we thought it will be increasing the flow cytometry business.
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
Another thing to think about, Tycho is on the LTG side, the super majority of the systems and assays and beats (ph) and such that go to those end user customers flow through our partners because we will be in front of those customers. When we get in front of a customer that maybe hasn't yet adopted Luminex technology, we have the opportunity to help our partners place their systems in those environments and as a result the effect is more -- it's indirect, it's a driver of beats and royalties through our partners that we feel the effect of unless and until Luminex was selling something directly through that same channel, which obviously we don't do today because we haven't wanted to compete with our partners.
Tycho Peterson -- JPMorgan -- Analyst
Okay, thank you.
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
You bet.
Operator
Thank you. Our next question comes from Sung Ji Nam of BTIG. Your line is now open.
Sung Ji Nam -- BTIG -- Analyst
Hi, thanks for taking the question. Homi, I'm not sure if I heard this correctly, but it sounds like that customers are already testing or it be the SENSIPLEX platform or looking to evaluate them in the near term. And was curious as to if that might be across the entire installed base of LX 200, FLEXMAP and MAGPIX et cetera or is there kind of the higher throughput system where you seen kind of...
Nachum "Homi" Shamir -- President and Chief Executive Officer
Yes. So, thanks. Sung ji. No, what I said in -- that we are planning to bring during the second quarter, our partner here to start testing the system. Okay? Our major partner, not every partner and mainly the partner in life science -- in basically in research area. And, really the SENSIPLEX is targeting the LX200 and the FLEXMAP 3D. That's really where we are targeting. The MAGPIX is a little bit different base in the capability compared to where the LX200 and the SENSIPLEX can provide. And we are targeting what we said all along that we would like them to come, test, give us the feedback. Based on their feedback, we might or not adjust the system.
I'm hoping that before the end of the year some of our partner will start buying internally a couple of system, each of them and they will test -- start testing their backward capability and then they will set up a lunching date for the system. We will know much more about it by the end of the second quarter when we will sit with all of them and get their feedback in understanding how they want to take it to the market.
Sung Ji Nam -- BTIG -- Analyst
Okay, great. And then is there -- could you remind us again if there is seasonality associated with the flow business, flow cytometry business and also kind of going back to Tycho's question with regards to synergies, et cetera, do you still expect the business to be accretive overall?
Nachum "Homi" Shamir -- President and Chief Executive Officer
Yes. We still believe the business will be accretive by year end. There is no -- that's what we are working. As we're saying, initially we might have to invest and we are investing, obviously just matter of our argument. We're (inaudible) TSA (ph). So, those are the transactional service agreement we have with them. They cost us a lot of money during the first and second quarter. Most of them will face by this time, and then we probably will have few more TSA on (inaudible). But as we phase out of that, the basement become more profitable and we believe will be by the end of year we will make money out of the business. Yes, as there any other capital business, it tends to be a Q4 a business, that's the nature of -- unfortunately the capital business. So yes, we will have more revenue anticipate coming in the fourth quarter than the rest of the year.
Sung Ji Nam -- BTIG -- Analyst
Great, thank you.
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
You bet.
Operator
Thank you. Our next question comes from Brian Weinstein of William Blair. Your line is now open.
Andrew Brackmann -- William Blair -- Analyst
Hi guys, this is actually Andrew Brackmann on for Brian.
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
Hi, Andrew.
Andrew Brackmann -- William Blair -- Analyst
I wonder if you guys could just provide a little bit of commentary on the assay mix for VERIGENE, any change there given the competitive environment or the reimbursement changes couple of months back?
Nachum "Homi" Shamir -- President and Chief Executive Officer
No, Andrew, the same. As we keep saying all along, we're working on the EPU (ph) that we are ramping it up. We started (inaudible) the next one is the blood culture. But beyond that, as I said and that's -- previously we're also saying what assay we would launch -- like to launch on the VERIGENE II plus, but at the moment we are really extremely busy with those two and the MRCA for the release that we also wrapping up the clinical trial. So -- but as soon as we get our head above the water with those lines or at least the MRCA and EP that both are due to be finished, we'll start putting more resources to the rest of the assay.
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
The mix in the VERIGENE assays has remained about where it has been, where blood culture has been half of the total and respiratory and gastro had been roughly equal in the other half, absent of a big flu season. So the mix hasn't changed much across the existing assays and Homi mentioned we are working on getting those other ones launched for VERIGENE II so that we can provide a higher quality solution to our customers.
Andrew Brackmann -- William Blair -- Analyst
Got it. Appreciate the color there. And then, Homi, relative to your comments on life science acquisitions, potentially in life sciences, would that meant to signal that there might be something in the hopper and maybe could you provide any additional color on what we should expect in terms of timing and something like that?
Nachum "Homi" Shamir -- President and Chief Executive Officer
We keep looking and we are looking to provide strategic opportunity like we have done with Nanosphere which was extremely good acquisition to us. We are hoping that the flow cytometry will be again a great acquisition, but again as I said, we are in the midst now of integrating it. It's -- each of those acquisition has its pro and con because the Nanosphere we bought a company and we need to make a lot of changes there, but here we bought a (inaudible) business. So we need also to make sure employee getting paid, health insurance and every email and et cetera. So, each of them has a different kind of base, but nevertheless we are very confident with the flow cytometry business, we will make it successful as we have done with the Nanosphere. Now, we will continue to create -- generate cash, even if our profitability will be down, but that's only limited for this part of the year. And we start looking what beyond that, so if there is something that we like, some asset, both in life science, on the LTG or in the molecular diagnostic, we will look at that and hopefully we will be able to afford to do it.
Andrew Brackmann -- William Blair -- Analyst
Got it. Thank you.
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
You bet.
Operator
Thank you. Our next question comes from Brandon Couillard of Jefferies. Your line is now open.
Brandon Couillard -- Jefferies & Company, Inc. -- Analyst
Thanks. Just a couple of housekeeping for Homi. Would you expect the Millipore inventory step-up to roll off by the fourth quarter, I think you talked about it being accretive by the fourth quarter, I would imagine that's the case, such that gross margins are actually back above the 60% level exiting the year?
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
We would actually expect it -- Brandon, this is Harriss, to roll off by the end of the second quarter.
Brandon Couillard -- Jefferies & Company, Inc. -- Analyst
Perfect. And then we saw CapEx step up a little bit in '18, what do you pencil in for that in '19, and then could you help us with a non-GAAP sort of effective tax rate we should be thinking about for '19?
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
Yes, so lot of the CapEx expenditures in '18 were improvements for our manufacturing facilities to accommodate significantly higher volume. So we're completing a lot of that, obviously as we move into '19, any incremental changes we have to make relative to movement of Millipore production facilities from places like India to United States will have to be accommodated, but shouldn't be too significant there because space already exists in our facilities today to accommodate that. What was your other question, I don't remember the...
Brandon Couillard -- Jefferies & Company, Inc. -- Analyst
The non-GAAP effective tax rate for the year.
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
Non-GAAP effective tax rate, yes. So our -- one challenge that we obviously run into is that we have tax exposure in a number of countries, six or seven countries. The US drives our effective tax rate. Effective tax rate in US is just over 30%. The challenge is it, for losses generated in other other entities, drives the consolidated effective tax rate, obviously up a lot higher because it infringes on the profitability of the US operations. So as you look into '19, what I can tell you, is while I would expect the cash tax rate to be is that a very small, like less than 5%, the effective tax rate is a little more complicated than that and I don't want to go into the details of the math. So, I would say that you would you would probably peg the effective tax rate, 30% to 50%, but a very small component of that is actual cash taxes because of utilization of NOLs and R&D tax credits and all the rest that we have available to us.
Brandon Couillard -- Jefferies & Company, Inc. -- Analyst
Very good. Thank you.
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
You bet.
Operator
Thank you. (Operator Instructions) Our next question comes from Bill Quirk of Piper Jaffray. Your line is now open.
William Quirk -- Piper Jaffray -- Analyst
Great. Thanks, good afternoon everybody. So I guess, Homi, first question, recognizing that the acquired Millipore business is little under $40 million, could you just talk a little bit about I guess the composition of the sales team, what sort of plans you have to increase that here in '19 and '20 or are you pretty happy with the size of it as it is now?
Nachum "Homi" Shamir -- President and Chief Executive Officer
Yes. Thanks, Bill. It's a good question. First, when we -- as I said earlier, when we got the business from Millipore (inaudible) it was a carve out. So to the carve out, I think we got about 10% less of the total people we anticipated, from a lot reason, some of them we obtained. So we are going to fill up those position, it's not sales -- the overall 10% was less in surveys and other aspects of the business. So first, we need to recruit it to the level that we are down (ph), which mainly is in Europe. In the USA, we are planning to increase the sales force in about three people, there where I think just before we acquired them, there was down (ph) one or two people. So we are going to fill up those position as fast as we can, and keep moving them. Hopefully that answers the question.
William Quirk -- Piper Jaffray -- Analyst
Yes, it does. Thank you very much. And then I just have a bigger picture question for Harriss and it goes back to the earlier question about the effective tax rate and the fact you've got losses outside the US that make your effective rate a lot higher because of higher setup in the US. Any long-term thoughts guys, you've got a huge royalty business sitting on the income statement, which is obviously got to be coming in pretty high margin, but yet getting taxed at fairly high rate. I mean, are there any longer-term implication here to try to reduce your overall effective tax rate? I appreciate that you have NOLs for your cash taxes are fairly low. But I don't know -- and then maybe I just answered my question but just..
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
Yes, so let me help you with just giving you an example, right. And this is not Luminex because I am not looking at the table with all the multiple countries in front of me, but in a situation where Luminex makes $20 million at the pre-tax line and Luminex pays the corporate tax rate of let's say 25%. Then in the next case Luminex is going to have $5,000 in taxes and the effective tax rate is going to be 25%. But when that $20,000 of income gets offset by losing $2,000 in one country or no taxes involved and a $1,000 in another country, another -- so you peal $5 million off of the total consolidated taxable income and suddenly $20 million of profit becomes $50 million of profit, but you still pay $5 million in taxes.
So now suddenly you have 33% effective tax rate even though your US earnings were taxed at the appropriate rate. So as math when you combine the multiple countries as opposed to us actually paying and using NOLs through that. The NOLs handle the cash portion of the taxes due in countries where there is a profit position that we can use those NOLs to offset it. So unfortunately it's a mathematical issue that drives our effective tax rate high. But in the US, our tax rates are exactly where we expect them to be, absent changes in the Trump tax structure and all the rest of that have come through. So we're pretty comfortable with our tax set up, what would help it most would be to, for instance, generate sales in foreign countries and turn those countries just right at the margin of profitability toward zero. And now you find yourself back with either equivalent or more income with no tax due, so the effective tax rate would drop in that case. Does that answer your question?
William Quirk -- Piper Jaffray -- Analyst
Yes, that's fine. I may follow up you offline. Thanks.
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
That's fine.
Operator
Thank you. And ladies and gentlemen, this does conclude our question-and-answer session. I would now like to turn the call back over to Homi Shamir for any closing remarks.
Nachum "Homi" Shamir -- President and Chief Executive Officer
Thank you, Sonia, and thank you everyone for your attendance on our earnings call. We look forward to seeing you in person in the very near future. Thank you.
Operator
Ladies and gentlemen, thank you for participating in today's conference. This concludes today's program. You may all disconnect. Everyone, have a great day.
Duration: 53 minutes
Call participants:
Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer
Nachum "Homi" Shamir -- President and Chief Executive Officer
Daniel Arias -- Citi Investment Research -- Analyst
Daniel Leonard -- Deutsche Bank -- Analyst
Tycho Peterson -- JPMorgan -- Analyst
Sung Ji Nam -- BTIG -- Analyst
Andrew Brackmann -- William Blair -- Analyst
Brandon Couillard -- Jefferies & Company, Inc. -- Analyst
William Quirk -- Piper Jaffray -- Analyst
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Transcript powered by AlphaStreet
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Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer You bet. One of our primary goals is to develop a biotic (ph) content that can be both support the placement of our imaging base product while involving the flow cytometry revenue stream to generate a much larger recurring component. Nachum "Homi" Shamir -- President and Chief Executive Officer Yes.
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Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer You bet. Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer Good afternoon and welcome to Luminex Corporation's conference call to discuss our fourth quarter 2018 and full year financial and operational results. Nachum "Homi" Shamir -- President and Chief Executive Officer Yes.
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Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer You bet. The prior year quarter also included tax expenses driven by the Tax Cuts and Jobs Act of approximately $7 million related to repatriation charges, associated with foreign earnings not previously taxed by the US, $3 million for revaluation of deferred US tax assets and a $3 million adjustment of Canadian deferred tax liabilities, partially offset by tax benefit for the release of valuation allowances on Dutch and acquired US losses. Nachum "Homi" Shamir -- President and Chief Executive Officer Yes.
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Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer You bet. Harriss T. Currie -- Chief Financial Officer, Senior Vice President, Finance and Treasurer Good afternoon and welcome to Luminex Corporation's conference call to discuss our fourth quarter 2018 and full year financial and operational results. Nachum "Homi" Shamir -- President and Chief Executive Officer Yes.
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2019-01-30 00:00:00 UTC
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Key Takeaways From Caterpillar's Q4
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https://www.nasdaq.com/articles/key-takeaways-caterpillars-q4-2019-01-30
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Caterpillar's ( CAT ) stock fell nearly 10% after the company reported lower than expected Q4 earnings on January 28 - largely as a result of the tariffs imposed on Chinese imports and weaker than expected 2019 guidance. Despite underperforming consensus estimates, Caterpillar still achieved some progress. The adjusted earnings per share came in at $2.55 (+18% y-o-y), while its revenue came in at $14.34 billion (+11% y-o-y). The result was slightly dampened by the slowdown in sales in China, as a result of the ongoing trade war with the U.S., which resulted in lower than expected demand for its products. However, we believe increased construction spending, coupled with increased CapEx spending by mining companies, the strengthening of U.S. GDP, recovery in commodity prices, and sustained focus on cost cutting, should drive its near term results. Moreover, headwinds in the energy and transportation division as well as further market uncertainty - as a result of the ongoing tariff war - should slightly dampen the near term outlook. Below, we provide a brief overview of the company's results and what lies ahead.
Our price estimate for Caterpillar's stock stands at $160 , which is now significantly higher than the current market price. We are in the process of updating our model to account for the company's FY'18 results. We have also created an interactive dashboard which outlines what to expect from Caterpillar in 2019 . You can modify the key value drivers to see how they impact the company's revenues and bottom line. Below we discuss some of the key factors that are likely to impact the brokerage's earnings.
The Resource Industries division continued its robust growth momentum and was the fastest-growing segment into Q4. The segment grew nearly 21% year-on-year to just under $2.8 billion, primarily driven by improved demand for both mining and heavy construction equipment across regions and solid replacement demand. This increased demand was largely due to improved commodity prices and solid infrastructure investment, resulting in healthy order activity. We expect this trend to continue into 2019 and drive the segment's revenue. Additionally, an uptick in capital spending by multiple mining companies bodes well for the segment. In addition, recovery in commodity prices, coupled with full scale fleet replacement should drive increased end-user demand for new equipment. As a result, we expect this segment's revenue to grow by about 12% y-o-y to about $10.5 billion in 2019.
The Energy and Transportation segment caters to a wide array of end markets. The segment revenue grew 11% year-on-year to $6.3 billion, as a result of solid growth across all applications except Industrials. The was mainly due to increased demand for its reciprocating engines, aftermarket parts, gas powered applications, improved rail traffic and recent acquisitions in rail services. We expect these trends to carry over into 2019 and drive the segment's revenue. However, the recent oil price fluctuations, coupled with the Permian basin takeaway constraints , should slightly dampen the demand for its well servicing applications. Consequently, we expect this segment to grow by nearly 8% y-o-y to about $20.6 billion in 2019.
Construction Industries revenue was up 8% year-on-year to $5.7 billion, forming nearly 40% of the company's net revenues. The strong performance was as a result of the robust demand for its products across North America and EMEA, coupled with significant investments in nonresidential construction, infrastructure, and oil & gas related projects. However, subdued demand from China - largely driven by trade war tensions - and Latin America slightly dampened the segment performance. China accounts for roughly 15% of overall construction industries sales, and we expect this ongoing trade dispute to slightly dampen the segment's outlook in 2019. Nevertheless, the improved macroeconomic conditions in the U.S. should not only drive increased construction spending, but also boost the housing market. Further, the company believes continued pipeline construction and substantial infrastructure spending - at both local and state levels - should drive 2019 results.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, recovery in commodity prices, coupled with full scale fleet replacement should drive increased end-user demand for new equipment. The strong performance was as a result of the robust demand for its products across North America and EMEA, coupled with significant investments in nonresidential construction, infrastructure, and oil & gas related projects. China accounts for roughly 15% of overall construction industries sales, and we expect this ongoing trade dispute to slightly dampen the segment's outlook in 2019.
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The segment grew nearly 21% year-on-year to just under $2.8 billion, primarily driven by improved demand for both mining and heavy construction equipment across regions and solid replacement demand. This increased demand was largely due to improved commodity prices and solid infrastructure investment, resulting in healthy order activity. However, subdued demand from China - largely driven by trade war tensions - and Latin America slightly dampened the segment performance.
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The result was slightly dampened by the slowdown in sales in China, as a result of the ongoing trade war with the U.S., which resulted in lower than expected demand for its products. Despite underperforming consensus estimates, Caterpillar still achieved some progress. Below, we provide a brief overview of the company's results and what lies ahead.
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This increased demand was largely due to improved commodity prices and solid infrastructure investment, resulting in healthy order activity. Despite underperforming consensus estimates, Caterpillar still achieved some progress. The result was slightly dampened by the slowdown in sales in China, as a result of the ongoing trade war with the U.S., which resulted in lower than expected demand for its products.
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2019-01-25 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Caterpillar, Microsoft, General Dynamics, IBM and Deere
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-caterpillar-microsoft-general-dynamics-ibm-and-deere
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For Immediate Release
Chicago, IL - January 25, 2019 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Caterpillar CAT , Microsoft MSFT , General Dynamics GD , IBM IBM and Deere & Company DE .
Here are highlights from Thursday's Analyst Blog:
Top Analyst Reports for Caterpillar, Microsoft and General Dynamics
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Caterpillar, Microsoft and General Dynamics. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Buy-ranked Caterpillar 's shares have outperformed the Zacks Construction and Mining in the past three months (+17.3% vs. +16.2%). Backed by strong order rates, favorable commodity prices and increasing backlog, Caterpillar guides adjusted earnings per share at $11.00-$12.00 for 2018, reflecting year-over-year growth of 67% at the mid-point. The estimates for the fourth quarter and fiscal 2018 for the company have gone up, ahead o f earnings release.
Notably, Caterpillar has a positive record of earnings surprises in the last few quarters. Improving demand across most of the end-markets and cost cutting efforts will aid results. In Construction Industries segment, continued improvement in residential and non-residential construction, and revival in infrastructure demand are likely to drive revenues.
Miners are resuming capital spending which bodes well for the Resource Industries segment. Focus on expanded offerings and services and investment in digital initiatives like e-commerce will also boost growth.
Shares of Buy-ranked Microsoft have gained +15.6% in the past year, outperforming the Zacks Computer Software industry's gain of 11.1% during the same period. Microsoft is benefiting from growing user base of its different applications like Office 365 commercial, Dynamics, Outlook mobile and Teams. Moreover, Azure's expanding customer base is a key catalyst.
Microsoft's gaming segment is performing well, primarily driven by a combination of Xbox Live, Game Pass subscriptions and Mixer, which are driving user engagement. Further, acquisitions like PlayFab and GitHub expand Microsoft's total addressable market (TAM) and penetration. Additionally, expanding partner base is notable.
General Dynamics 's shares have lost -1% in the past three months, outperforming the Zacks Aerospace & Defense industry's decrease of -3%. General Dynamics enjoys solid demand for its varied defense products leading to organic growth, while a notable acquisition strategy adds to its inorganic growth. It continues to proceed toward an anticipated FAA type certification for its G600 aircraft later this year, which is expected to enter service in 2019.
General Dynamics, being one of the only two contractors in the world equipped to build nuclear-powered submarines, as well as one of the prime U.S. shipbuilders, should certainly benefit from this increased budget proposal. The company also operates in a highly competitive market with some competitors having extensive or specialized business segments, superior to General Dynamics.
Other noteworthy reports we are featuring today include IBM and Deere & Company.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss . This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
International Business Machines Corporation (IBM): Free Stock Analysis Report
General Dynamics Corporation (GD): Free Stock Analysis Report
Microsoft Corporation (MSFT): Get Free Report
Caterpillar Inc. (CAT): Get Free Report
Deere & Company (DE): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Backed by strong order rates, favorable commodity prices and increasing backlog, Caterpillar guides adjusted earnings per share at $11.00-$12.00 for 2018, reflecting year-over-year growth of 67% at the mid-point. General Dynamics, being one of the only two contractors in the world equipped to build nuclear-powered submarines, as well as one of the prime U.S. shipbuilders, should certainly benefit from this increased budget proposal. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security.
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Stocks recently featured in the blog include: Caterpillar CAT , Microsoft MSFT , General Dynamics GD , IBM IBM and Deere & Company DE . Click to get this free report International Business Machines Corporation (IBM): Free Stock Analysis Report General Dynamics Corporation (GD): Free Stock Analysis Report Microsoft Corporation (MSFT): Get Free Report Caterpillar Inc. (CAT): Get Free Report Deere & Company (DE): Get Free Report To read this article on Zacks.com click here. Backed by strong order rates, favorable commodity prices and increasing backlog, Caterpillar guides adjusted earnings per share at $11.00-$12.00 for 2018, reflecting year-over-year growth of 67% at the mid-point.
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Click to get this free report International Business Machines Corporation (IBM): Free Stock Analysis Report General Dynamics Corporation (GD): Free Stock Analysis Report Microsoft Corporation (MSFT): Get Free Report Caterpillar Inc. (CAT): Get Free Report Deere & Company (DE): Get Free Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Caterpillar CAT , Microsoft MSFT , General Dynamics GD , IBM IBM and Deere & Company DE . Backed by strong order rates, favorable commodity prices and increasing backlog, Caterpillar guides adjusted earnings per share at $11.00-$12.00 for 2018, reflecting year-over-year growth of 67% at the mid-point.
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Stocks recently featured in the blog include: Caterpillar CAT , Microsoft MSFT , General Dynamics GD , IBM IBM and Deere & Company DE . Backed by strong order rates, favorable commodity prices and increasing backlog, Caterpillar guides adjusted earnings per share at $11.00-$12.00 for 2018, reflecting year-over-year growth of 67% at the mid-point. Improving demand across most of the end-markets and cost cutting efforts will aid results.
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2019-01-24 00:00:00 UTC
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Top Analyst Reports for Caterpillar, Microsoft & General Dynamics
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https://www.nasdaq.com/articles/top-analyst-reports-caterpillar-microsoft-general-dynamics-2019-01-24
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Thursday, January 24, 2019
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Caterpillar (CAT), Microsoft (MSFT) and General Dynamics (GD). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Buy-ranked Caterpillar 's shares have outperformed the Zacks Construction and Mining in the past three months (+17.3% vs. +16.2%). Backed by strong order rates, favorable commodity prices and increasing backlog, Caterpillar guides adjusted earnings per share at $11.00-$12.00 for 2018, reflecting year-over-year growth of 67% at the mid-point. The estimates for the fourth quarter and fiscal 2018 for the company have gone up, ahead o f earnings release.
Notably, Caterpillar has a positive record of earnings surprises in the last few quarters. Improving demand across most of the end-markets and cost cutting efforts will aid results. In Construction Industries segment, continued improvement in residential and non-residential construction, and revival in infrastructure demand are likely to drive revenues.
Miners are resuming capital spending which bodes well for the Resource Industries segment. Focus on expanded offerings and services and investment in digital initiatives like e-commerce will also boost growth.
(You can read the full research report on Caterpillar here >>> ).
Shares of Buy-ranked Microsoft have gained +15.6% in the past year, outperforming the Zacks Computer Software industry's gain of 11.1% during the same period. Microsoft is benefiting from growing user base of its different applications like Office 365 commercial, Dynamics, Outlook mobile and Teams. Moreover, Azure's expanding customer base is a key catalyst.
Microsoft's gaming segment is performing well, primarily driven by a combination of Xbox Live, Game Pass subscriptions and Mixer, which are driving user engagement. Further, acquisitions like PlayFab and GitHub expand Microsoft's total addressable market (TAM) and penetration. Additionally, expanding partner base is notable.
(You can read the full research report on Microsoft here >>> ).
General Dynamics 's shares have lost -1% in the past three months, outperforming the Zacks Aerospace & Defense industry's decrease of -3%. General Dynamics enjoys solid demand for its varied defense products leading to organic growth, while a notable acquisition strategy adds to its inorganic growth. It continues to proceed toward an anticipated FAA type certification for its G600 aircraft later this year, which is expected to enter service in 2019.
General Dynamics, being one of the only two contractors in the world equipped to build nuclear-powered submarines, as well as one of the prime U.S. shipbuilders, should certainly benefit from this increased budget proposal. The company also operates in a highly competitive market with some competitors having extensive or specialized business segments, superior to General Dynamics.
(You can read the full research report on General Dynamics here >>> ).
Other noteworthy reports we are featuring today include Estée Lauder (EL), IBM (IBM) and Deere & Company (DE).
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trendsand Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Caterpillar (CAT) Banks on Favorable Markets & Cost Cuts
Adoption of Azure & Office 365 Strength Aids Microsoft (MSFT)
Rising Demand Aids General Dynamics (GD), Competition Hurts
Featured Reports
New Parasites Products Help Zoetis (ZTS) Combat Competition
Per the Zacks analyst, growth from new parasiticide products & strong dermatology portfolio boost Zoetis amid stiff competition.
Diamond's (DO) Rig Contract for Ocean Apex to Drive Growth
The Zacks Analyst agrees that awards for Diamond Offshore's premium rigs will help the offshore contract driller fetch significant cash flow.
H&R Block (HRB) to Benefit From Growth of the Tax Industry
The Zacks analyst believes that H&R Block looks well poised to gain from opportunities offered by a growing tax industry.
Dolby (DLB) Rides on Solid Licensing Unit, Liquidity Strength
Per the Zacks analyst, increasing market traction of digital media adapters, sound bars and cinema technology should boost Dolby's top line.
Las Vegas Sands' (LVS) Robust Macao Business to Drive Growth
Per the Zacks analysts, Las Vegas Sands' planned investment in new capital projects in Macao and higher revenues from The Parisian Macao are likely to drive growth.
Myriad (MYGN) GeneSight Volume to Grow, Long-term Goal Solid
The Zacks analyst projects improvement in GeneSight Volume for Myriad Genetics banking on the recent publication of its landmark GUIDED study.
Focus on Cost-Savings to Drive Smucker's (SJM) Bottom Line
Smucker achieved cost savings of $100 million in fiscal 2018. Per the Zacks analyst, the company's solid cost reduction will drive its bottom line.
New Upgrades
Deere (DE) Buoyed by Wirtgen Buyout & Advanced Technologies
Per the Zacks Analyst, Deere will benefit from upbeat agriculture and construction equipment markets.
Investments, Growing Renewable Assets Aids DTE Energy (DTE)
Per the Zacks Analyst, regular investments in infrastructure projects could drive DTE Energy's future performance. Also, DTE Energy is investing steadily to enhance its renewable generation assets.
Travel Retail & Online Channels to Drive Estee Lauder (EL)
Per the Zacks analyst, Estee Lauder has been gaining from rising traffic in its online sales channel. Further, the company's top-line is set to gain from efforts to strengthen travel retail.
New Downgrades
Ongoing Business Transition to Cloud & High Debt Hurts IBM
Per the Zacks analyst, IBM is having a tough time, given the ongoing time-consuming business model transition to cloud. Also, stiff competition from peers & high indebtedness is a concern.
Pending Regulations, High Debt Bothers Total System (TSS)
Per the Zacks analyst, pending Financial protection bureau rules on prepaid accounts, will dent the company's revenue; its high debt raises financial risk.
Focus on Lower Margin Business to Affect CBRE Group
Per the Zacks Analyst, with a shift towards a lower margin outsourcing business, CBRE Group's performance is likely to be affected.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microsoft Corporation (MSFT): Get Free Report
International Business Machines Corporation (IBM): Free Stock Analysis Report
General Dynamics Corporation (GD): Free Stock Analysis Report
The Estee Lauder Companies Inc. (EL): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Caterpillar Inc. (CAT): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Backed by strong order rates, favorable commodity prices and increasing backlog, Caterpillar guides adjusted earnings per share at $11.00-$12.00 for 2018, reflecting year-over-year growth of 67% at the mid-point. General Dynamics, being one of the only two contractors in the world equipped to build nuclear-powered submarines, as well as one of the prime U.S. shipbuilders, should certainly benefit from this increased budget proposal. Click here for the 6 trades >> Mark Vickery Senior Editor Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Caterpillar (CAT) Banks on Favorable Markets & Cost Cuts Adoption of Azure & Office 365 Strength Aids Microsoft (MSFT) Rising Demand Aids General Dynamics (GD), Competition Hurts Featured Reports New Parasites Products Help Zoetis (ZTS) Combat Competition Per the Zacks analyst, growth from new parasiticide products & strong dermatology portfolio boost Zoetis amid stiff competition. Click to get this free report Microsoft Corporation (MSFT): Get Free Report International Business Machines Corporation (IBM): Free Stock Analysis Report General Dynamics Corporation (GD): Free Stock Analysis Report The Estee Lauder Companies Inc. (EL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Caterpillar Inc. (CAT): Get Free Report To read this article on Zacks.com click here. Backed by strong order rates, favorable commodity prices and increasing backlog, Caterpillar guides adjusted earnings per share at $11.00-$12.00 for 2018, reflecting year-over-year growth of 67% at the mid-point.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Caterpillar (CAT) Banks on Favorable Markets & Cost Cuts Adoption of Azure & Office 365 Strength Aids Microsoft (MSFT) Rising Demand Aids General Dynamics (GD), Competition Hurts Featured Reports New Parasites Products Help Zoetis (ZTS) Combat Competition Per the Zacks analyst, growth from new parasiticide products & strong dermatology portfolio boost Zoetis amid stiff competition. Click to get this free report Microsoft Corporation (MSFT): Get Free Report International Business Machines Corporation (IBM): Free Stock Analysis Report General Dynamics Corporation (GD): Free Stock Analysis Report The Estee Lauder Companies Inc. (EL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Caterpillar Inc. (CAT): Get Free Report To read this article on Zacks.com click here. Backed by strong order rates, favorable commodity prices and increasing backlog, Caterpillar guides adjusted earnings per share at $11.00-$12.00 for 2018, reflecting year-over-year growth of 67% at the mid-point.
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If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Caterpillar (CAT) Banks on Favorable Markets & Cost Cuts Adoption of Azure & Office 365 Strength Aids Microsoft (MSFT) Rising Demand Aids General Dynamics (GD), Competition Hurts Featured Reports New Parasites Products Help Zoetis (ZTS) Combat Competition Per the Zacks analyst, growth from new parasiticide products & strong dermatology portfolio boost Zoetis amid stiff competition. Backed by strong order rates, favorable commodity prices and increasing backlog, Caterpillar guides adjusted earnings per share at $11.00-$12.00 for 2018, reflecting year-over-year growth of 67% at the mid-point. Improving demand across most of the end-markets and cost cutting efforts will aid results.
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2019-01-23 00:00:00 UTC
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The Zacks Analyst Blog Highlights: DXP Enterprises, Milacron, Twin Disc, Deere and Colfax
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-dxp-enterprises-milacron-twin-disc-deere-and-colfax
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For Immediate Release
Chicago, IL - January 23, 2019 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: DXP Enterprises Inc. DXPE , Milacron Holdings Corp. MCRN , Twin Disc Inc. TWIN , Deere & Co. DE and Colfax Corp. CFX .
Here are highlights from Tuesday's Analyst Blog:
December Manufacturing at 10-Month High: 5 Picks
U.S. manufacturing output surged significantly in December. Despite a volatile 2018, the sector is still expanding and generating impressive number of jobs. Manufacturers have increased capital spending and hiring driven by massive tax overhaul, deregulation, strong domestic economy and upbeat business sentiment.
U.S. manufacturing sector, which constitutes approximately 12% of the country's GDP, has been witnessing resurgence under the Trump administration since 2017, shrugging off its lengthy spell of weak productivity and sluggish growth. At this stage, investment in manufacturing stocks with a favorable Zacks Rank and strong growth potential will be a prudent decision.
Robust Manufacturing Output in December
On Jan 18, Federal Reserve reported that manufacturing output soared 1.1% in December 2018, its highest gain in 10 months. Higher production of motor vehicles, construction supplies, business supplies and materials provided a boost to manufacturing sector. As a result of the surge in manufacturing output, U.S. industrial production rose 0.3% in December, outpacing the consensus estimate of 0.2%.
On Jan 3, the Institute for Supply Management (ISM) reported that the U.S. manufacturing expanded in December 2018 for the 116th consecutive month. Over the last 12 months, the average value of the manufacturing index has been pegged at 58.8, reflecting strong growth in the sector. Notably, any reading above 50 indicates overall growth of the manufacturing sector.
Importantly, Customers' Inventories Index was pegged at 41.7 in December, reflecting 27th consecutive month of low (below 50 benchmark level) customer inventory. This will act as a major catalyst for the manufacturing sector in 2019.
Strong Hiring in Manufacturing Sector
According to the Department of Labor, the manufacturing sector generated 284,000 jobs in 2018, highest since 1997. This sector generated 207,000 jobs in 2017. Within the sector, durable goods industries, which produce industrial intermediaries, generated nearly 89% of job additions.
The National Association of Manufacturers reported that about 500,000 manufacturing jobs are currently available in the United States. A recent study by the Manufacturing Institute and Deloitte has projected that by the end of 2025, the U.S. manufacturing sector will witness shortages of around 2 million skilled workers.
Positive Developments on Trade War Front
On Jan 18, Bloomberg reported that China has offered to ramp up imports from the United State in the next six years. Total value of these imports will be $1 trillion which will bring down the United States' massive trade deficit with China to zero in 2024. Notably, the United States had a trade deficit of $323 billion with China in 2018.
On Jan 16, The Wall Street Journal reported that the U.S. government is contemplating lifting some tariffs imposed on China. This will act as an incentive to the Asian economic giant to make deeper concessions to the United States. However, a Treasury Department spokesperson later denied the report.
Our Picks
At present, the U.S. economy is firmly placed on growth trajectory. Strong manufacturing goods orders are normally associated with stronger economic activity. Considering these positives, investing in manufacturing stocks with strong growth potential will be a lucrative move. We narrowed down our choice to five stocks each of which carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy).
DXP Enterprises Inc. is a leading products and service distributor that adds value and total cost savings solutions to industrial customers in the United States, Canada, Mexico and Dubai. It sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here . The company has expected earnings growth of 33.5% for current year. The Zacks Consensus Estimate for the current year has improved by 6.7% over the last 60 days.
Milacron Holdings Corp. manufactures, distributes and services engineered and customized systems within the plastic technology and processing industry. It flaunts a Zacks Rank #1. The company has expected earnings growth of 15.1% for current year. The Zacks Consensus Estimate for the current year has improved by 0.5% over the last 60 days.
Twin Disc Inc. designs, manufactures and sells heavy duty off-highway power transmission equipment. It carries a Zacks Rank #2. The company has expected earnings growth of 21% for current year. The Zacks Consensus Estimate for the current year has improved by 1.8% over the last 60 days.
Deere & Co. manufactures agricultural, construction, and forestry machinery, diesel engines, drivetrains used in heavy equipment, and lawn care equipment. It carries a Zacks Rank #2. The company has expected earnings growth of 21.8% for current year. The Zacks Consensus Estimate for the current year has improved by 0.4% over the last 60 days.
Colfax Corp. is a global supplier of fluid handling products, including pumps, fluid handling systems and specialty valves. It carries a Zacks Rank #2. The company has expected earnings growth of 17% for current year. The Zacks Consensus Estimate for the current year has improved by 3.1% over the last 60 days.
Looking for Stocks with Skyrocketing Upside?
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See the pot trades we're targeting>>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss . This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
DXP Enterprises, Inc. (DXPE): Free Stock Analysis Report
Twin Disc, Incorporated (TWIN): Free Stock Analysis Report
Colfax Corporation (CFX): Get Free Report
Milacron Holdings Corp. (MCRN): Get Free Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Manufacturers have increased capital spending and hiring driven by massive tax overhaul, deregulation, strong domestic economy and upbeat business sentiment. U.S. manufacturing sector, which constitutes approximately 12% of the country's GDP, has been witnessing resurgence under the Trump administration since 2017, shrugging off its lengthy spell of weak productivity and sluggish growth. Stocks recently featured in the blog include: DXP Enterprises Inc. DXPE , Milacron Holdings Corp. MCRN , Twin Disc Inc. TWIN , Deere & Co. DE and Colfax Corp. CFX .
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Stocks recently featured in the blog include: DXP Enterprises Inc. DXPE , Milacron Holdings Corp. MCRN , Twin Disc Inc. TWIN , Deere & Co. DE and Colfax Corp. CFX . Importantly, Customers' Inventories Index was pegged at 41.7 in December, reflecting 27th consecutive month of low (below 50 benchmark level) customer inventory. Click to get this free report Deere & Company (DE): Free Stock Analysis Report DXP Enterprises, Inc. (DXPE): Free Stock Analysis Report Twin Disc, Incorporated (TWIN): Free Stock Analysis Report Colfax Corporation (CFX): Get Free Report Milacron Holdings Corp. (MCRN): Get Free Report To read this article on Zacks.com click here.
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At this stage, investment in manufacturing stocks with a favorable Zacks Rank and strong growth potential will be a prudent decision. Strong Hiring in Manufacturing Sector According to the Department of Labor, the manufacturing sector generated 284,000 jobs in 2018, highest since 1997. Click to get this free report Deere & Company (DE): Free Stock Analysis Report DXP Enterprises, Inc. (DXPE): Free Stock Analysis Report Twin Disc, Incorporated (TWIN): Free Stock Analysis Report Colfax Corporation (CFX): Get Free Report Milacron Holdings Corp. (MCRN): Get Free Report To read this article on Zacks.com click here.
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On Jan 3, the Institute for Supply Management (ISM) reported that the U.S. manufacturing expanded in December 2018 for the 116th consecutive month. Over the last 12 months, the average value of the manufacturing index has been pegged at 58.8, reflecting strong growth in the sector. Strong Hiring in Manufacturing Sector According to the Department of Labor, the manufacturing sector generated 284,000 jobs in 2018, highest since 1997.
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2019-01-22 00:00:00 UTC
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December Manufacturing Output Records 10-Month High: 5 Picks
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https://www.nasdaq.com/articles/december-manufacturing-output-records-10-month-high-5-picks-2019-01-22
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U.S. manufacturing output surged significantly in December. Despite a volatile 2018, the sector is still expanding and generating impressive number of jobs. Manufacturers have increased capital spending and hiring driven by massive tax overhaul, deregulation, strong domestic economy and upbeat business sentiment.
U.S. manufacturing sector, which constitutes approximately 12% of the country's GDP, has been witnessing resurgence under the Trump administration since 2017, shrugging off its lengthy spell of weak productivity and sluggish growth. At this stage, investment in manufacturing stocks with a favorable Zacks Rank and strong growth potential will be a prudent decision.
Robust Manufacturing Output in December
On Jan 18, Federal Reserve reported that manufacturing output soared 1.1% in December 2018, its highest gain in 10 months. Higher production of motor vehicles, construction supplies, business supplies and materials provided a boost to manufacturing sector. As a result of the surge in manufacturing output, U.S. industrial production rose 0.3% in December, outpacing the consensus estimate of 0.2%.
On Jan 3, the Institute for Supply Management (ISM) reported that the U.S. manufacturing expanded in December 2018 for the 116th consecutive month. Over the last 12 months, the average value of the manufacturing index has been pegged at 58.8, reflecting strong growth in the sector. Notably, any reading above 50 indicates overall growth of the manufacturing sector.
Importantly, Customers' Inventories Index was pegged at 41.7 in December, reflecting 27th consecutive month of low (below 50 benchmark level) customer inventory. This will act as a major catalyst for the manufacturing sector in 2019.
Strong Hiring in Manufacturing Sector
According to the Department of Labor, the manufacturing sector generated 284,000 jobs in 2018, highest since 1997. This sector generated 207,000 jobs in 2017. Within the sector, durable goods industries, which produce industrial intermediaries, generated nearly 89% of job additions.
The National Association of Manufacturers reported that about 500,000 manufacturing jobs are currently available in the United States. A recent study by the Manufacturing Institute and Deloitte has projected that by the end of 2025, the U.S. manufacturing sector will witness shortages of around 2 million skilled workers.
Positive Developments on Trade War Front
On Jan 18, Bloomberg reported that China has offered to ramp up imports from the United State in the next six years. Total value of these imports will be $1 trillion which will bring down the United States' massive trade deficit with China to zero in 2024. Notably, the United States had a trade deficit of $323 billion with China in 2018.
On Jan 16, The Wall Street Journal reported that the U.S. government is contemplating lifting some tariffs imposed on China. This will act as an incentive to the Asian economic giant to make deeper concessions to the United States. However, a Treasury Department spokesperson later denied the report.
Our Picks
At present, the U.S. economy is firmly placed on growth trajectory. Strong manufacturing goods orders are normally associated with stronger economic activity. Considering these positives, investing in manufacturing stocks with strong growth potential will be a lucrative move. We narrowed down our choice to five stocks each of which carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy).
The chart below shows price performance of our five picks in the past one year.
DXP Enterprises Inc.DXPE is a leading products and service distributor that adds value and total cost savings solutions to industrial customers in the United States, Canada, Mexico and Dubai. It sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here . The company has expected earnings growth of 33.5% for current year. The Zacks Consensus Estimate for the current year has improved by 6.7% over the last 60 days.
Milacron Holdings Corp.MCRN manufactures, distributes and services engineered and customized systems within the plastic technology and processing industry. It flaunts a Zacks Rank #1. The company has expected earnings growth of 15.1% for current year. The Zacks Consensus Estimate for the current year has improved by 0.5% over the last 60 days.
Twin Disc Inc.TWIN designs, manufactures and sells heavy duty off-highway power transmission equipment. It carries a Zacks Rank #2. The company has expected earnings growth of 21% for current year. The Zacks Consensus Estimate for the current year has improved by 1.8% over the last 60 days.
Deere & Co.DE manufactures agricultural, construction, and forestry machinery, diesel engines, drivetrains used in heavy equipment, and lawn care equipment. It carries a Zacks Rank #2. The company has expected earnings growth of 21.8% for current year. The Zacks Consensus Estimate for the current year has improved by 0.4% over the last 60 days.
Colfax Corp.CFX is a global supplier of fluid handling products, including pumps, fluid handling systems and specialty valves. It carries a Zacks Rank #2. The company has expected earnings growth of 17% for current year. The Zacks Consensus Estimate for the current year has improved by 3.1% over the last 60 days.
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Deere & Company (DE): Get Free Report
Twin Disc, Incorporated (TWIN): Free Stock Analysis Report
Colfax Corporation (CFX): Get Free Report
DXP Enterprises, Inc. (DXPE): Free Stock Analysis Report
Milacron Holdings Corp. (MCRN): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Manufacturers have increased capital spending and hiring driven by massive tax overhaul, deregulation, strong domestic economy and upbeat business sentiment. U.S. manufacturing sector, which constitutes approximately 12% of the country's GDP, has been witnessing resurgence under the Trump administration since 2017, shrugging off its lengthy spell of weak productivity and sluggish growth. U.S. manufacturing output surged significantly in December.
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Robust Manufacturing Output in December On Jan 18, Federal Reserve reported that manufacturing output soared 1.1% in December 2018, its highest gain in 10 months. Importantly, Customers' Inventories Index was pegged at 41.7 in December, reflecting 27th consecutive month of low (below 50 benchmark level) customer inventory. Click to get this free report Deere & Company (DE): Get Free Report Twin Disc, Incorporated (TWIN): Free Stock Analysis Report Colfax Corporation (CFX): Get Free Report DXP Enterprises, Inc. (DXPE): Free Stock Analysis Report Milacron Holdings Corp. (MCRN): Get Free Report To read this article on Zacks.com click here.
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At this stage, investment in manufacturing stocks with a favorable Zacks Rank and strong growth potential will be a prudent decision. Strong Hiring in Manufacturing Sector According to the Department of Labor, the manufacturing sector generated 284,000 jobs in 2018, highest since 1997. Click to get this free report Deere & Company (DE): Get Free Report Twin Disc, Incorporated (TWIN): Free Stock Analysis Report Colfax Corporation (CFX): Get Free Report DXP Enterprises, Inc. (DXPE): Free Stock Analysis Report Milacron Holdings Corp. (MCRN): Get Free Report To read this article on Zacks.com click here.
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On Jan 3, the Institute for Supply Management (ISM) reported that the U.S. manufacturing expanded in December 2018 for the 116th consecutive month. Strong Hiring in Manufacturing Sector According to the Department of Labor, the manufacturing sector generated 284,000 jobs in 2018, highest since 1997. U.S. manufacturing output surged significantly in December.
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721873.0
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2019-01-21 00:00:00 UTC
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Stock Market News For Jan 21, 2019
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https://www.nasdaq.com/articles/stock-market-news-for-jan-21-2019-2019-01-21
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The bull-run of the U.S. stocks continued for the fourth straight day on Friday following positive news on the trade war front. These developments helped investors ignore concerns about the month long partial shutdown of the U.S. government. All three major stock indexes ended in the green. For the week also, indexes closed in positive territory.
The Dow Jones Industrial Average (DJI) closed at 24,706.35, gaining 1.4% or 336.25 points. The S&P 500 Index (INX) also climbed 1.3% to close at 2,670.71. Meanwhile, the Nasdaq Composite Index (IXIC) closed at 7,157.23, rising 1%. A total of 7.99 billion shares were traded on Friday, lower than the last 20-session average of 8.44 billion shares. Advancers outnumbered decliners on the NYSE by 2.93-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 2.26-to-1 ratio. The CBOE VIX decreased 1.4% to close at 17.80.
How Did the Benchmarks Perform?
The Dow ended in positive territory for the fourth successive day. Notably, all 30 stocks of the blue-chip index finished in the green. The tech-heavy Nasdaq Composite also ended in the green after rallying for four straight days, due to strong performance by large-cap tech stocks.
The S&P 500 closed in positive territory for the fourth consecutive day. The Energy Select Sector SPDR (XLE), Industrials Select Sector SPDR (XLI) and Financials Select Sector SPDR (XLF) are major gainers with 2%, 1.7% and 1.6%, respectively. Notably, all 11 sectors of the benchmark index closed in the green.
Positive Developments on Trade War Front
On Jan 18, Bloomberg reported that China has offered to ramp up imports from the United State in the next six years. Total value of these imports will be $1 trillion which will bring down massive trade deficit that United States is currently bearing with China to zero in 2024. Some officials who are engaged in the ensuing United States - China trade negotiations have revealed this information. Notably, the United States had a trade deficit of $323 billion with China in 2018.
On Jan 16, The Wall Street Journal reported that the U.S. government is contemplating a proposal regarding lifting of some tariffs imposed on China. This will act as an incentive to the Asian economic giant to make deeper concessions to the United States.However, a Treasury Department spokesperson later denied the news.
China has already provided assurance of importing "a substantial amount" of agricultural, energy and manufactured goods and services from the United States.The three-day meeting between mid-level delegations of the United States and China ended on a positive note on Jan 5. This meeting had laid the foundation for further negotiations to forge a permanent deal in order to resolve the trade disputes between the two largest trading nations of the world.
Consequently, shares of trade-sensitive stocks like The Boeing Co, BA , Caterpillar Inc. CAT and Deere & Co. DE were up 1.6%, 2.2% and 2.8%, respectively. The Boeing carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Economic Data
On Jan 18, Federal Reserve reported that the U.S. industrial production increased 0.3% in December 2018, higher than the consensus estimate of 0.2%. Manufacturing production grew 1.1% in December, its biggest gain since February 2018. Capacity utilization for the manufacturing sector increased to 76.5% in December from 75.8% in November.
Weekly Roundup
For the week as a whole, all three major stock index finished in the green. The Dow rose nearly 3%. The S&P 500 and Nasdaq Composite gained 2.9% and 2.7%, respectively. Indexes recorded their first weekly gain for four straight weeks since August 2018. Strong economic data, Fed's hint of softer monetary stance in 2019 and several positive developments on the trade war front acts as catalysts for investors.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
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The Boeing Company (BA): Get Free Report
Caterpillar Inc. (CAT): Get Free Report
Deere & Company (DE): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The tech-heavy Nasdaq Composite also ended in the green after rallying for four straight days, due to strong performance by large-cap tech stocks. Positive Developments on Trade War Front On Jan 18, Bloomberg reported that China has offered to ramp up imports from the United State in the next six years. Strong economic data, Fed's hint of softer monetary stance in 2019 and several positive developments on the trade war front acts as catalysts for investors.
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The bull-run of the U.S. stocks continued for the fourth straight day on Friday following positive news on the trade war front. Click to get this free report The Boeing Company (BA): Get Free Report Caterpillar Inc. (CAT): Get Free Report Deere & Company (DE): Get Free Report To read this article on Zacks.com click here. These developments helped investors ignore concerns about the month long partial shutdown of the U.S. government.
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The tech-heavy Nasdaq Composite also ended in the green after rallying for four straight days, due to strong performance by large-cap tech stocks. Positive Developments on Trade War Front On Jan 18, Bloomberg reported that China has offered to ramp up imports from the United State in the next six years. China has already provided assurance of importing "a substantial amount" of agricultural, energy and manufactured goods and services from the United States.The three-day meeting between mid-level delegations of the United States and China ended on a positive note on Jan 5.
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For the week also, indexes closed in positive territory. Notably, all 11 sectors of the benchmark index closed in the green. Positive Developments on Trade War Front On Jan 18, Bloomberg reported that China has offered to ramp up imports from the United State in the next six years.
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2e21bc22-133c-4fd2-b059-5d911447fb5e
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721874.0
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2019-01-21 00:00:00 UTC
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6 Stocks Set to Gain as U.S.-China Trade Tensions Ease
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https://www.nasdaq.com/articles/6-stocks-set-gain-us-china-trade-tensions-ease-2019-01-21
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Stocks finished in the green for the fourth straight day on Jan 18 following media reports which suggested that U.S.-China trade relations were set to improve. The resulting optimism helped to outweigh concerns emanating from the government shutdown and mixed fourth-quarter earnings numbers.
Recently, both sides have been making optimistic comments which suggest that a deal could be reached soon to end this long-running dispute. Technology, materials and industrial stocks are likely to benefit the most from such an agreement. Adding stocks from these sectors to your portfolio looks like a smart choice.
China Offers to Hike U.S. Imports, Says Bloomberg
The major catalyst to Friday's gains was a report from Bloomberg, per which China is looking to raise its U.S. imports by $1 trillion. The escalation, which is likely to take place over the next six years, would eliminate the U.S.-China trade deficit completely by 2024. Last year, China's trade surplus with the United States came in at $323 billion.
The report goes on to state that this offer was made during trade talks with Beijing in December. U.S. officials expressed their doubts about the offer and asked China to erase the misbalance completely over the next two years. Economists also think a complete elimination of trade surplus is hard to achieve.
However, other market watchers believe that China could achieve this target by creating a trade surplus with other trading partners. This could intensify the imbalance with other partners, but China would end up buying more U.S. products, including cars, aircraft and soybeans.
Trump Exudes Optimism About Trade Deal
On Jan 19, U.S. President Donald Trump exuded optimism about chances of a trade deal with China, indicating significant progress had taken place on this front. His comments follow discussions between top officials from both sides which took place in Beijing earlier this month.
According to Trump, a trade agreement "could very well happen" following an "extraordinary number of meetings." However, he brushed aside reports that his administration was looking to remove tariffs on China imports.
At the same time, the fact that his comments come ahead of Chinese vice-premier Liu He's visit to Washington later this month, provides cause for optimism. He is scheduled to meet U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer for high level discussions.
Last week, a spokesperson of China's foreign ministry recently stated that both the United States and China were "making positive efforts" to seal a deal which could be "mutually beneficial." The spokesperson was reacting to a query about Liu's upcoming trip to the United States.
Our Choices
Recent media reports seem to suggest that both the United States and China are keen to end their long-running trade dispute. President Trump also continues to make optimistic comments about this issue. With another round of trade talks scheduled for later this month, a resolution to this dispute seems to be in sight.
Technology, materials and industrials stocks will likely gain the most from this development. This is why it makes sense to pick up select stocks from these sectors at this time. However, picking winning stocks may be difficult.
This is where our VGM Score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score.
We have narrowed down our search to the following stocks based on a good Zacks Rank and VGM Score.
Marvell Technology Group Ltd.MRVL is a fabless designer, developer and marketer of analog, mixed-signal and digital signal processing integrated circuits.
Marvell Technology carries a Zacks Rank #1 (Strong Buy) and has a VGM Score of B. The company has expected earnings growth of 4.8% for the current year.
Sealed Air CorporationSEE is a global leader in food safety and security and product protection.
Sealed Air has a VGM Score of B. The company's expected earnings growth for the current year is 11%. The Zacks Consensus Estimate for the current year has improved by 0.3% over the last 30 days. The stock sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
Intel CorporationINTC is the world's largest manufacturer of semiconductor products.
Intel has a Zacks Rank #2 (Buy) and VGM Score of A. The company has expected earnings growth of 0.3% for the current year.
Deere & CompanyDE is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide.
Deere carries a Zacks Rank #2 and has a VGM Score of A. The company has expected earnings growth of 21.8% for the current year. The Zacks Consensus Estimate for the current year has improved by 0.4% over the last 60 days.
The Mosaic CompanyMOS is a leading producer and marketer of concentrated phosphate and potash for the global agriculture industry.
The Mosaic Company carries a Zacks Rank #2 and has a VGM Score of A. The company has expected earnings growth of 24% for the current year. The Zacks Consensus Estimate for the current year has improved by 2.4% over the last 30 days.
Intrepid Potash, Inc.IPI is the largest producer of potash in the United States and is dedicated to the production and marketing of potash and langbeinite, another mineral containing potassium.
Intrepid Potash carries a Zacks Rank #2 and has a VGM Score of A. For the current year, the company has expected earnings growth of more than 100%. The Zacks Consensus Estimate for the current year has improved by 7.8% over the last 30 days.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
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Marvell Technology Group Ltd. (MRVL): Free Stock Analysis Report
Sealed Air Corporation (SEE): Get Free Report
Intrepid Potash, Inc (IPI): Free Stock Analysis Report
The Mosaic Company (MOS): Free Stock Analysis Report
Deere & Company (DE): Get Free Report
Intel Corporation (INTC): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks finished in the green for the fourth straight day on Jan 18 following media reports which suggested that U.S.-China trade relations were set to improve. Our Choices Recent media reports seem to suggest that both the United States and China are keen to end their long-running trade dispute. Marvell Technology Group Ltd.MRVL is a fabless designer, developer and marketer of analog, mixed-signal and digital signal processing integrated circuits.
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Trump Exudes Optimism About Trade Deal On Jan 19, U.S. President Donald Trump exuded optimism about chances of a trade deal with China, indicating significant progress had taken place on this front. Our Choices Recent media reports seem to suggest that both the United States and China are keen to end their long-running trade dispute. Click to get this free report Marvell Technology Group Ltd. (MRVL): Free Stock Analysis Report Sealed Air Corporation (SEE): Get Free Report Intrepid Potash, Inc (IPI): Free Stock Analysis Report The Mosaic Company (MOS): Free Stock Analysis Report Deere & Company (DE): Get Free Report Intel Corporation (INTC): Get Free Report To read this article on Zacks.com click here.
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Trump Exudes Optimism About Trade Deal On Jan 19, U.S. President Donald Trump exuded optimism about chances of a trade deal with China, indicating significant progress had taken place on this front. Click to get this free report Marvell Technology Group Ltd. (MRVL): Free Stock Analysis Report Sealed Air Corporation (SEE): Get Free Report Intrepid Potash, Inc (IPI): Free Stock Analysis Report The Mosaic Company (MOS): Free Stock Analysis Report Deere & Company (DE): Get Free Report Intel Corporation (INTC): Get Free Report To read this article on Zacks.com click here. Stocks finished in the green for the fourth straight day on Jan 18 following media reports which suggested that U.S.-China trade relations were set to improve.
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Our Choices Recent media reports seem to suggest that both the United States and China are keen to end their long-running trade dispute. Stocks finished in the green for the fourth straight day on Jan 18 following media reports which suggested that U.S.-China trade relations were set to improve. Recently, both sides have been making optimistic comments which suggest that a deal could be reached soon to end this long-running dispute.
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6ef30f4b-d470-42ec-9cec-9e66ca4e146e
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721875.0
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2019-01-21 00:00:00 UTC
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Moving Average Crossover Alert: Deere & Company
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https://www.nasdaq.com/articles/moving-average-crossover-alert%3A-deere-company-2019-01-21
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Deere & CompanyDE is looking like an interesting pick from a technical perspective, as the company is seeing favorable trends on the moving average crossover front. Recently, the 50 Day Moving Average for DE broke out above the 200 Day Simple Moving Average, suggesting a short-term bullish trend.
This has already started to take place, as the stock has moved higher by 13.8% in the past four weeks. Plus, the company currently has a Zacks Rank #2 (Buy) suggesting that now could definitely be the time for this breakout candidate.
More bullishness may especially be the case when investors consider what has been happening for DE on the earnings estimate revision front lately. No estimate has gone lower in the past two months, compared to 1 higher, while the consensus estimate has also moved higher too.
So given this move in estimates, and the positive technical factors, investors may want to watch this breakout candidate closely for more gains in the near future.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & CompanyDE is looking like an interesting pick from a technical perspective, as the company is seeing favorable trends on the moving average crossover front. More bullishness may especially be the case when investors consider what has been happening for DE on the earnings estimate revision front lately. Recently, the 50 Day Moving Average for DE broke out above the 200 Day Simple Moving Average, suggesting a short-term bullish trend.
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Click to get this free report Deere & Company (DE): Get Free Report To read this article on Zacks.com click here. Deere & CompanyDE is looking like an interesting pick from a technical perspective, as the company is seeing favorable trends on the moving average crossover front. Recently, the 50 Day Moving Average for DE broke out above the 200 Day Simple Moving Average, suggesting a short-term bullish trend.
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Recently, the 50 Day Moving Average for DE broke out above the 200 Day Simple Moving Average, suggesting a short-term bullish trend. Deere & CompanyDE is looking like an interesting pick from a technical perspective, as the company is seeing favorable trends on the moving average crossover front. Plus, the company currently has a Zacks Rank #2 (Buy) suggesting that now could definitely be the time for this breakout candidate.
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Recently, the 50 Day Moving Average for DE broke out above the 200 Day Simple Moving Average, suggesting a short-term bullish trend. Deere & CompanyDE is looking like an interesting pick from a technical perspective, as the company is seeing favorable trends on the moving average crossover front. Plus, the company currently has a Zacks Rank #2 (Buy) suggesting that now could definitely be the time for this breakout candidate.
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721876.0
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2019-01-17 00:00:00 UTC
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Notable Thursday Option Activity: FUL, DE, FSLR
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https://www.nasdaq.com/articles/notable-thursday-option-activity-ful-de-fslr-2019-01-17
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Fuller Company (Symbol: FUL), where a total of 3,002 contracts have traded so far, representing approximately 300,200 underlying shares. That amounts to about 53.9% of FUL's average daily trading volume over the past month of 557,275 shares. Particularly high volume was seen for the $50 strike call option expiring February 15, 2019 , with 785 contracts trading so far today, representing approximately 78,500 underlying shares of FUL. Below is a chart showing FUL's trailing twelve month trading history, with the $50 strike highlighted in orange:
Deere & Co. (Symbol: DE) saw options trading volume of 11,493 contracts, representing approximately 1.1 million underlying shares or approximately 48.7% of DE's average daily trading volume over the past month, of 2.4 million shares. Especially high volume was seen for the $172.50 strike call option expiring February 01, 2019 , with 3,125 contracts trading so far today, representing approximately 312,500 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $172.50 strike highlighted in orange:
And First Solar Inc (Symbol: FSLR) saw options trading volume of 7,340 contracts, representing approximately 734,000 underlying shares or approximately 48% of FSLR's average daily trading volume over the past month, of 1.5 million shares. Particularly high volume was seen for the $47.50 strike call option expiring January 18, 2019 , with 1,322 contracts trading so far today, representing approximately 132,200 underlying shares of FSLR. Below is a chart showing FSLR's trailing twelve month trading history, with the $47.50 strike highlighted in orange:
For the various different available expirations for FUL options , DE options , or FSLR options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $50 strike call option expiring February 15, 2019 , with 785 contracts trading so far today, representing approximately 78,500 underlying shares of FUL. Especially high volume was seen for the $172.50 strike call option expiring February 01, 2019 , with 3,125 contracts trading so far today, representing approximately 312,500 underlying shares of DE. Particularly high volume was seen for the $47.50 strike call option expiring January 18, 2019 , with 1,322 contracts trading so far today, representing approximately 132,200 underlying shares of FSLR.
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Particularly high volume was seen for the $50 strike call option expiring February 15, 2019 , with 785 contracts trading so far today, representing approximately 78,500 underlying shares of FUL. Below is a chart showing FUL's trailing twelve month trading history, with the $50 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 11,493 contracts, representing approximately 1.1 million underlying shares or approximately 48.7% of DE's average daily trading volume over the past month, of 2.4 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $172.50 strike highlighted in orange: And First Solar Inc (Symbol: FSLR) saw options trading volume of 7,340 contracts, representing approximately 734,000 underlying shares or approximately 48% of FSLR's average daily trading volume over the past month, of 1.5 million shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Fuller Company (Symbol: FUL), where a total of 3,002 contracts have traded so far, representing approximately 300,200 underlying shares. Below is a chart showing FUL's trailing twelve month trading history, with the $50 strike highlighted in orange: Deere & Co. (Symbol: DE) saw options trading volume of 11,493 contracts, representing approximately 1.1 million underlying shares or approximately 48.7% of DE's average daily trading volume over the past month, of 2.4 million shares. Below is a chart showing DE's trailing twelve month trading history, with the $172.50 strike highlighted in orange: And First Solar Inc (Symbol: FSLR) saw options trading volume of 7,340 contracts, representing approximately 734,000 underlying shares or approximately 48% of FSLR's average daily trading volume over the past month, of 1.5 million shares.
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Particularly high volume was seen for the $50 strike call option expiring February 15, 2019 , with 785 contracts trading so far today, representing approximately 78,500 underlying shares of FUL. Especially high volume was seen for the $172.50 strike call option expiring February 01, 2019 , with 3,125 contracts trading so far today, representing approximately 312,500 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $172.50 strike highlighted in orange: And First Solar Inc (Symbol: FSLR) saw options trading volume of 7,340 contracts, representing approximately 734,000 underlying shares or approximately 48% of FSLR's average daily trading volume over the past month, of 1.5 million shares.
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721877.0
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2019-01-11 00:00:00 UTC
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Agribusiness ETF Experiences Big Outflow
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https://www.nasdaq.com/articles/agribusiness-etf-experiences-big-outflow-2019-01-11
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $47.7 million dollar outflow -- that's a 6.0% decrease week over week (from 13,250,000 to 12,450,000). Among the largest underlying components of MOO, in trading today Deere & Co. (Symbol: DE) is off about 0.5%, Zoetis Inc (Symbol: ZTS) is down about 0.5%, and Nutrien Ltd.HARES (Symbol: NTR) is lower by about 1.2%. For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average:
Looking at the chart above, MOO's low point in its 52 week range is $54.16 per share, with $66.64 as the 52 week high point - that compares with a last trade of $59.80. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $54.16 per share, with $66.64 as the 52 week high point - that compares with a last trade of $59.80. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $54.16 per share, with $66.64 as the 52 week high point - that compares with a last trade of $59.80. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $47.7 million dollar outflow -- that's a 6.0% decrease week over week (from 13,250,000 to 12,450,000).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Agribusiness ETF (Symbol: MOO) where we have detected an approximate $47.7 million dollar outflow -- that's a 6.0% decrease week over week (from 13,250,000 to 12,450,000). For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $54.16 per share, with $66.64 as the 52 week high point - that compares with a last trade of $59.80. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the MOO Holdings page » The chart below shows the one year price performance of MOO, versus its 200 day moving average: Looking at the chart above, MOO's low point in its 52 week range is $54.16 per share, with $66.64 as the 52 week high point - that compares with a last trade of $59.80. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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fe283d40-8af0-474b-a15a-7a39a6695908
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721878.0
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2019-01-11 00:00:00 UTC
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After a Strong 2018, Is Kratos Still a Buy?
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DE
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https://www.nasdaq.com/articles/after-strong-2018-kratos-still-buy-2019-01-11
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nan
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nan
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Kratos Defense & Security Solutions (NASDAQ: KTOS) has always been a bit of an anomaly in the defense sector: a high-risk, high-potential-reward company competing in a sector full of slow and steady Dividend Aristocrats . The company's 2018 share performance reflected that divide: Kratos gained 33% on the year, compared to a 20%-plus loss for General Dynamics and Northrop Grumman , and double-digit declines for most of the major contractors.
Kratos' performance was even more impressive considering that the company last March was the target of a critical report by short-seller Spruce Point Capital Management, which argued that the company's stock could drop 40% to 70%. Kratos did fall an initial 11% following the report but recovered nicely over the course of the year as it was able to win new business and make progress on some of its most promising development-stage projects.
KTOS vs. major defense companies, 2018 data by YCharts .
Kratos has been a battleground stock for a long time. Can it deliver another year of outperformance, or will the shorts carry the day in 2019? Here's a look at Kratos' outlook for 2019 to try to determine whether it's too late to jump on board.
Drone warrior
Kratos started as a wireless-infrastructure vendor and pivoted to become a government contractor last decade. As Spruce Point notes, the company has had its challenges over the years. It spent about $1 billion to assemble a hodgepodge of defense assets that, despite promises to the contrary , until recently had failed to generate a profit.
The current optimism surrounding Kratos is focused on the company's portfolio of jet-powered drones: They're fast enough to simulate missiles in test runs and could one day fly as wingmates to combat aircraft. The company primarily sells missile simulators today, while working on its Valkyrie and Mako drone platforms that it hopes will one day fly alongside crewed aircraft providing additional firepower and acting as decoys to distract anti-aircraft systems.
Kratos' XQ-58A Valkyrie drone, expected to fly in early 2019. Image source: U.S. Air Force Research Laboratories.
Fully autonomous combat systems are still a long way off, but the drone business does seem to be advancing at a good pace. Last year Kratos won U.S. State Department approval to market the Mako internationally. The higher-tech Valkyrie, meanwhile, is expected to have its first flight this year. And Kratos in the last year has rapidly expanded the number of unmanned air vehicles under development, revealing at least five other platforms.
Kratos is working with the U.S. Air Force Research Laboratory to demonstrate the Valkyrie and has several other unnamed national security clients looking at its drones. If all goes well, Kratos could get an initial production order for the Valkyrie before year's end, a major milestone in its attempt to shift from making drones for target practice to making futuristic combat systems.
There is still plenty that could go wrong, including competition from deeper-pocketed contractors, including Lockheed Martin and Northrop, as well as from drone specialist General Atomics, but optimism is justifiably higher now than it has ever been.
Goldman Sachs analyst Noah Poponak in December predicted that Kratos' unmanned systems division could be 10 times today's size by 2025 . That's ambitious. But should just some of these drone projects prove their mettle in the years to come, Kratos should be able to grow revenue at a double-digit rate well into the next decade, with steadily improving margins as the aircraft move out of the research and development phase and into production.
Broadening its reach
Individual investors aren't the only ones taking notice of Kratos. The company in recent months has been the subject of takeover speculation, with Dealreporter on Dec. 6 saying that takeover interest in Kratos has "ramped up" along with its drone programs.
Investors should take M&A talk with a grain of salt, and the potential for a deal is no reason to buy into the stock. But the whispers, if true, are a validation of how far Kratos has come in the last 12 months. And given that drones should be an area of the Pentagon budget likely to survive potential funding cuts, there is ample reason for defense titans, and investors, to add exposure to these programs.
Kratos' remaining non-drone work is also on an upswing. In 2018, the company sold its public safety and security division for $70.7 million, but its tech business in the fourth quarter won a series of contracts, including a $29 million award to develop "prototype technologies, components and subsystems for the enhancement of existing or new Directed Energy (DE) systems," or laser cannons. And its cybersecurity arm got a high-profile win when it was identified as the cybersecurity manager of data transfer and routing operations for Amazon.com 's new Amazon Web Services' Ground Station.
2018 wasn't a fluke
Kratos, as I said, isn't your typical staid defense stock, and it still isn't recommended for the faint of heart. The company is overvalued relative to other defense names, trading at 39.6 times forward earnings estimates compared to Lockheed's 13.6 P/E. But Kratos, uniquely among defense names, also has the potential to rapidly grow into its valuation.
I predicted last April that, despite the criticism being levied at the time, "Kratos either will still be around in five years or will have been acquired by a larger defense contractor at a premium to today's prices." There is still enough uncertainty that the stock should be viewed as a speculative investment. But with every passing quarter, it seems a better bet.
There's still time to buy into Kratos.
10 stocks we like better than Kratos Defense and Security Solutions
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Kratos Defense and Security Solutions wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of November 14, 2018
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company primarily sells missile simulators today, while working on its Valkyrie and Mako drone platforms that it hopes will one day fly alongside crewed aircraft providing additional firepower and acting as decoys to distract anti-aircraft systems. But should just some of these drone projects prove their mettle in the years to come, Kratos should be able to grow revenue at a double-digit rate well into the next decade, with steadily improving margins as the aircraft move out of the research and development phase and into production. Kratos Defense & Security Solutions (NASDAQ: KTOS) has always been a bit of an anomaly in the defense sector: a high-risk, high-potential-reward company competing in a sector full of slow and steady Dividend Aristocrats .
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Kratos Defense & Security Solutions (NASDAQ: KTOS) has always been a bit of an anomaly in the defense sector: a high-risk, high-potential-reward company competing in a sector full of slow and steady Dividend Aristocrats . KTOS vs. major defense companies, 2018 data by YCharts . The company primarily sells missile simulators today, while working on its Valkyrie and Mako drone platforms that it hopes will one day fly alongside crewed aircraft providing additional firepower and acting as decoys to distract anti-aircraft systems.
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Kratos Defense & Security Solutions (NASDAQ: KTOS) has always been a bit of an anomaly in the defense sector: a high-risk, high-potential-reward company competing in a sector full of slow and steady Dividend Aristocrats . 10 stocks we like better than Kratos Defense and Security Solutions When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Kratos Defense and Security Solutions wasn't one of them!
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* David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Kratos Defense and Security Solutions wasn't one of them! Kratos Defense & Security Solutions (NASDAQ: KTOS) has always been a bit of an anomaly in the defense sector: a high-risk, high-potential-reward company competing in a sector full of slow and steady Dividend Aristocrats . The company's 2018 share performance reflected that divide: Kratos gained 33% on the year, compared to a 20%-plus loss for General Dynamics and Northrop Grumman , and double-digit declines for most of the major contractors.
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3d33cf11-54b7-4785-9d1b-215fa2da7983
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721879.0
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2019-01-03 00:00:00 UTC
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Here's Why You Should Hold Deere Stock in Your Portfolio
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DE
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https://www.nasdaq.com/articles/heres-why-you-should-hold-deere-stock-in-your-portfolio-2019-01-03
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nan
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nan
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Deere & CompanyDE has been witnessing encouraging improvement over the past few quarters, majorly driven by upbeat agricultural and construction equipment markets and focus on acquisitions. However, challenges in Argentina and elevated expenses remain headwinds.
The company, with a market capitalization of approximately $47.5 billion, currently carries a Zacks Rank #3 (Hold). It has an estimated long-term earnings growth rate of 9%.
Below, we briefly discuss the company's potential growth drivers and possible headwinds.
Factors Favoring Deere
An Outperformer
Deere has outperformed the industry it belongs to over the past six months. The company's shares have gained around 6% compared to 3% growth recorded by the industry.
Underpriced
Looking at Deere's price-to-earnings ratio, shares are underpriced at the current level, which seems to be attractive for investors. The company has a trailing P/E ratio of 15.9, which is below the industry average of 17.2.
Growth Drivers in Place
For fiscal 2019, Deere anticipates net sales to increase about 7% year over year and projects net income of about $3.6 billion. The company remains well positioned to grow on the back of positive agricultural and construction equipment markets.
With the rapidly increasing adoption rates for technology, the company is keeping pace, organically and inorganically, to further extend its leading position in precision agriculture. In September 2017, Deere acquired Sunnyvale, CA-based Blue River Technology. Blue River's technology has aided precision agriculture by shifting farm-management decisions from the field level to the plant level.
Further, the company acquired the world's leading road-construction equipment maker - Wirtgen - in December 2017. The buyout significantly enhanced Deere's exposure to global transportation infrastructure. Wirtgen's integration is well underway with the Deere-Wirtgen team working toward the synergy target of EUR 100 million by 2022. The Wirtgen acquisition will contribute about 2% to net sales for fiscal 2019. Deere has also completed the acquisition of PLA which will assist it in providing innovative, cost-effective equipment, technology, and services to customers.
Headwinds for Deere
In the EU28 region, revenues are forecast to be approximately flat as a result of drought conditions in key markets in fiscal 2019. In South America, industry sales of tractors and combines are projected to be flat to up 5%, benefiting from strength in Brazil. However, Deere expects that sales growth in Argentina will likely remain challenged in the near term as the country battles high inflation and political uncertainty.
Again Deere will be affected by elevated expenses in fiscal 2019. It expects SA&G expense to flare up about 7% for the fiscal. Furthermore, unfavorable impact of acquisition cost and purchase accounting related to the Wirtgen buyout will dampen earnings. Also, unfavorable raw material prices and higher freight cost remain headwinds.
Bottom Line
Investors might want to hold on to the stock, at present, as it has ample prospects of outperforming peers in the near future.
Stocks to Consider
Some better-ranked stocks in the same sector are Brady Corporation BRC , Bemis Company, Inc. BMS and Enersys ENS . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here .
Brady has a long-term earnings growth rate of 7.5%. The company's shares have climbed 12% over the past six months.
Bemis has an estimated long-term growth rate of 7.3%. Its shares have rallied 8% over the past six months.
Enersys has a projected long-term growth rate of 10%. Its shares have gained 5% over the past six months.
More Stock News: This Is Bigger than the iPhone!
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Bemis Company, Inc. (BMS): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Brady Corporation (BRC): Free Stock Analysis Report
Enersys (ENS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere & CompanyDE has been witnessing encouraging improvement over the past few quarters, majorly driven by upbeat agricultural and construction equipment markets and focus on acquisitions. However, Deere expects that sales growth in Argentina will likely remain challenged in the near term as the country battles high inflation and political uncertainty. Factors Favoring Deere An Outperformer Deere has outperformed the industry it belongs to over the past six months.
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Growth Drivers in Place For fiscal 2019, Deere anticipates net sales to increase about 7% year over year and projects net income of about $3.6 billion. Stocks to Consider Some better-ranked stocks in the same sector are Brady Corporation BRC , Bemis Company, Inc. BMS and Enersys ENS . Click to get this free report Bemis Company, Inc. (BMS): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Brady Corporation (BRC): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here.
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Factors Favoring Deere An Outperformer Deere has outperformed the industry it belongs to over the past six months. Growth Drivers in Place For fiscal 2019, Deere anticipates net sales to increase about 7% year over year and projects net income of about $3.6 billion. Click to get this free report Bemis Company, Inc. (BMS): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Brady Corporation (BRC): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks to Consider Some better-ranked stocks in the same sector are Brady Corporation BRC , Bemis Company, Inc. BMS and Enersys ENS . Deere & CompanyDE has been witnessing encouraging improvement over the past few quarters, majorly driven by upbeat agricultural and construction equipment markets and focus on acquisitions. Factors Favoring Deere An Outperformer Deere has outperformed the industry it belongs to over the past six months.
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347fb7fc-ac06-403c-8df8-82b344a48530
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721880.0
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2019-01-03 00:00:00 UTC
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Better Buy for 2019: Caterpillar vs. Deere
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DE
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https://www.nasdaq.com/articles/better-buy-2019-caterpillar-vs-deere-2019-01-03
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nan
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nan
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Caterpillar (NYSE: CAT) and Deere (NYSE: DE) are often seen as twins in the investment world. The stocks have historically had a relatively high rate of correlation, and they share exposure to construction markets. But recent events connected with the U.S.-China trade dispute have created a divergence in their prospects in 2019, and investors need to think carefully before buying into either stock. Let's look at what's going on.
China's growth slows
It's no secret that China's growth slowed in the second half of 2018, causing the International Monetary Fund to cut its forecast for the country's growth in 2019 from 6.4% to 6.2% -- a figure in line with the World Bank's outlook. Meanwhile, FedEx became the latest company to cite slowing growth in Asia (and Europe for that matter) as one reason for cutting its fiscal 2019 guidance.
What tariffs mean for Deere
The interesting thing about the two companies' exposure to China and the trade dispute is that, at first glance, Deere seems set to be more heavily affected than Caterpillar. But on closer inspection, it's actually the other way around.
Agriculture is front and center in the trade conflict. For example, China used to buy a third of U.S. soybean production, but according to the Department of Agriculture, U.S. export sales to China plummeted 94% by November in response to the application of tariffs on U.S. soybeans. Deere's core equipment market is the U.S., and if farmers are suffering financially, they are less likely to upgrade or buy new equipment -- bad news for Deere.
That said, it looks likely that fears over the tariff dispute are overblown. For example, Deere's management recently argued that stronger market conditions in wheat, cotton, and corn would more than offset weakness in soybeans for U.S. farmers. Meanwhile, the rapprochement between Xi Jinping and President Trump at the end of November in Buenos Aires has led to China buying more soybeans from the U.S. again. And it's notable that the spread between U.S and Brazil soybean export prices has narrowed significantly in recent weeks after blowing up in the summer when tariffs on U.S. exports were applied.
The reality is that China needs soybeans, and even if it buys more from Brazil, for example, U.S. farmers have an opportunity to sell into the markets no longer served by Brazil. In short, don't overestimate the danger from tariffs to Deere .
What tariffs mean for Caterpillar
Caterpillar management sought to downplay the importance of China during the company's third-quarter earnings call in October. For example, CEO Jim Umpleby pointed out that China contributes only 5% to 10% of Caterpillar's sales, implying that a slowdown in China wouldn't have a significant impact on the company's equipment sales.
Unfortunately, it's not quite that simple. Demand from China for energy and mining commodities is probably the biggest single swing factor in determining prices for oil and gas, as well as metals and mining materials. Indeed, a quick look at commodity price trends shows a marked decline in the second half of 2018 -- when it became clear that China's growth is slowing.
WTI Crude Oil Spot Price data by YCharts.
Commodity prices matter to Caterpillar because the investment case for the stock in 2019 rests on the idea that capital spending from miners and energy exploration and production companies is set to improve. Unfortunately, the recent decline in commodity prices calls this into question. Moreover, Cummins (NYSE: CMI) , a major manufacturer of engines used in the energy sector and mining equipment, has already talked of "a little more cautiousness" for capital spending from its customers.
Buy Deere, not Caterpillar, if you are worried about China
In a nutshell, if you are worried about a protracted trade dispute between the U.S. and China and/or a general slowdown in growth in the Asian powerhouse, then Deere is the better buy. After all, even if China's economy slows, its growing population will still need to eat -- and in any case, U.S. farmers have other export markets they can sell into.
Of course, if China will comply with President Trump's demands by agreeing to play by international standards on trade, and gets its economy back on track, then there's arguably more upside to Caterpillar. But until there's hard evidence of this, Deere is the better buy.
10 stocks we like better than Caterpillar
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Caterpillar wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of November 14, 2018
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Cummins. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Commodity prices matter to Caterpillar because the investment case for the stock in 2019 rests on the idea that capital spending from miners and energy exploration and production companies is set to improve. Of course, if China will comply with President Trump's demands by agreeing to play by international standards on trade, and gets its economy back on track, then there's arguably more upside to Caterpillar. Caterpillar (NYSE: CAT) and Deere (NYSE: DE) are often seen as twins in the investment world.
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Commodity prices matter to Caterpillar because the investment case for the stock in 2019 rests on the idea that capital spending from miners and energy exploration and production companies is set to improve. Unfortunately, the recent decline in commodity prices calls this into question. Caterpillar (NYSE: CAT) and Deere (NYSE: DE) are often seen as twins in the investment world.
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What tariffs mean for Deere The interesting thing about the two companies' exposure to China and the trade dispute is that, at first glance, Deere seems set to be more heavily affected than Caterpillar. For example, China used to buy a third of U.S. soybean production, but according to the Department of Agriculture, U.S. export sales to China plummeted 94% by November in response to the application of tariffs on U.S. soybeans. Buy Deere, not Caterpillar, if you are worried about China In a nutshell, if you are worried about a protracted trade dispute between the U.S. and China and/or a general slowdown in growth in the Asian powerhouse, then Deere is the better buy.
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What tariffs mean for Deere The interesting thing about the two companies' exposure to China and the trade dispute is that, at first glance, Deere seems set to be more heavily affected than Caterpillar. For example, China used to buy a third of U.S. soybean production, but according to the Department of Agriculture, U.S. export sales to China plummeted 94% by November in response to the application of tariffs on U.S. soybeans. Caterpillar (NYSE: CAT) and Deere (NYSE: DE) are often seen as twins in the investment world.
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d17bdac4-b63e-4c47-b80c-88e9be2bdbaa
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721881.0
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2018-12-27 00:00:00 UTC
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Deere & Company (DE) Ex-Dividend Date Scheduled for December 28, 2018
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DE
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https://www.nasdaq.com/articles/deere-company-de-ex-dividend-date-scheduled-december-28-2018-2018-12-27
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nan
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nan
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Deere & Company ( DE ) will begin trading ex-dividend on December 28, 2018. A cash dividend payment of $0.76 per share is scheduled to be paid on February 01, 2019. Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 10.14% increase over prior dividend payment. At the current stock price of $143.27, the dividend yield is 2.12%.
The previous trading day's last sale of DE was $143.27, representing a -18.25% decrease from the 52 week high of $175.26 and a 11.65% increase over the 52 week low of $128.32.
DE is a part of the Capital Goods sector, which includes companies such as Thermo Fisher Scientific Inc ( TMO ) and Danaher Corporation ( DHR ). DE's current earnings per share, an indicator of a company's profitability, is $7.21. Zacks Investment Research reports DE's forecasted earnings growth in 2019 as 21.75%, compared to an industry average of 21.7%.
For more information on the declaration, record and payment dates, visit the DE Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to DE through an Exchange Traded Fund [ETF]?
The following ETF(s) have DE as a top-10 holding:
VanEck Vectors Natural Resources ETF ( HAP )
VanEck Vectors Agribusiness ETF ( MOO )
First Trust Indxx Global Agriculture ETF ( FTAG )
Invesco S&P 500 Equal Weight Industrials Portfolio ( RGI )
SerenityShares Impact ETF ( ICAN ).
The top-performing ETF of this group is MOO with an decrease of -12.41% over the last 100 days. HAP has the highest percent weighting of DE at 8.62%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. DE is a part of the Capital Goods sector, which includes companies such as Thermo Fisher Scientific Inc ( TMO ) and Danaher Corporation ( DHR ). Zacks Investment Research reports DE's forecasted earnings growth in 2019 as 21.75%, compared to an industry average of 21.7%.
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The following ETF(s) have DE as a top-10 holding: VanEck Vectors Natural Resources ETF ( HAP ) VanEck Vectors Agribusiness ETF ( MOO ) First Trust Indxx Global Agriculture ETF ( FTAG ) Invesco S&P 500 Equal Weight Industrials Portfolio ( RGI ) SerenityShares Impact ETF ( ICAN ). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Deere & Company ( DE ) will begin trading ex-dividend on December 28, 2018.
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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the DE Dividend History page. The following ETF(s) have DE as a top-10 holding: VanEck Vectors Natural Resources ETF ( HAP ) VanEck Vectors Agribusiness ETF ( MOO ) First Trust Indxx Global Agriculture ETF ( FTAG ) Invesco S&P 500 Equal Weight Industrials Portfolio ( RGI ) SerenityShares Impact ETF ( ICAN ).
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Shareholders who purchased DE prior to the ex-dividend date are eligible for the cash dividend payment. DE's current earnings per share, an indicator of a company's profitability, is $7.21. The following ETF(s) have DE as a top-10 holding: VanEck Vectors Natural Resources ETF ( HAP ) VanEck Vectors Agribusiness ETF ( MOO ) First Trust Indxx Global Agriculture ETF ( FTAG ) Invesco S&P 500 Equal Weight Industrials Portfolio ( RGI ) SerenityShares Impact ETF ( ICAN ).
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0732d62b-de7c-41a8-a255-a51cc0090a28
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721882.0
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2018-12-22 00:00:00 UTC
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What's in Store for Caterpillar in 2019?
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DE
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https://www.nasdaq.com/articles/whats-store-caterpillar-2019-2018-12-22
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nan
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nan
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Caterpillar 's (NYSE: CAT) presentation at the annual Credit Suisse Industrials Conference revealed a lot about the company's prospects in 2019. Let's take a look at what was said and how it matches up with what competitors like Deere (NYSE: DE) and Cummins (NYSE: CMI) have been saying. The stock's been beaten up in the last year -- down nearly 15% compared to a decline in the S&P 500 of just 4.3% as I write. Does Caterpillar's outlook mean the stock is a buy?
Caterpillar gives a positive outlook for 2019
From an execution perspective, prospects look good. Director of Investor Relations Amy Campbell spoke at the conference and outlined management's belief that Caterpillar's mining revenue would grow next year and come with margin expansion to boot. In a sense, she reiterated Caterpillar's position that mining capital spending is still in a cycle of "slower but longer growth."
This means Caterpillar should be able to generate incremental profit growth from its resource industries segment. As you can see by looking at equipment segment profit in the third quarter, the resource industries segment is the lowest profit generator, but the increase in profit was far larger than the construction industries segment.
Data source: Caterpillar presentations. YOY = year over year.
Construction outlook
Furthermore, Campbell sought to highlight the construction industries and energy & transportation segments' exposure to infrastructural spending: "We're just starting to see infrastructure spend increase, after many, many years of it continuing to decline."
Meanwhile, she pointed out that Caterpillar's exposure to the North American residential construction market (the U.S. housing market is expected to slow in 2019) was relatively small. Her positive view is backed by Deere's 2019 outlook for its construction & forestry segment net sales to grow 15% in 2019, with growth excluding the Wirtgen acquisition forecast to be 10%.
China
Turning to the tricky issue of the impact of a potential slowdown in China on Caterpillar, she appeared to echo the comments made by CEO Jim Umpleby on Caterpillar's third-quarter earnings call when he said that China only represents 5% to 10% of the company's sales.
Putting all of this together, it's clear that Caterpillar's management feels positive about 2019. And let's recall that Caterpillar is a company with an acquired reputation for being conservative with guidance -- just cast your mind back to the same conference in 2016, when management talked down expectations for $3.25 in adjusted profit per share (PPS) in 2017 only to report a whopping $6.88 in adjusted PPS in 2017. Similarly, management started 2018 expecting adjusted PPS in the range of $8.25 to $9.25 for 2018 only to raise the forecast to $11 to $12 by the third quarter.
Does it all add up to make Caterpillar a buy?
Unfortunately, it's not as easy as that, and some of management's commentary seems overly optimisitc.
For example, it's one thing to look at Caterpillar's direct exposure to China, but the company's indirect exposure is far larger. The fear is that a protracted trade dispute between the U.S. and China will lead to a slowdown in growth. Given China's pivotal importance to energy and mining commodity demand, this could lead to weakness in oil and mining commodity prices. Indeed, as you can see below, the recent decline in prices has been dramatic.
WTI Crude Oil Spot Price data by YCharts .
The reality is that when commodity prices fall, suppliers (Caterpillar's customers) tend to restrain capital spending on equipment. The bad news is there's already some evidence that this is happening.
For example, Cummins, a major manufacturer of engines used in oil & gas and mining equipment reduced its estimates for engine shipment growth in 2018 on the third-quarter earnings call. Cummins CEO Norman Linebarger said:
Cummins COO Richard Freeland later talked of a "pause" in spending in mining and oil & gas, which he suggested was a consequence of "a little more cautiousness out there right now."
The takeaway for investors
It's clear that Caterpillar's prospects in 2019 are likely to be determined by trends in commodity prices. The construction market looks solid -- Deere's outlook confirms that -- but Cummins management's commentary suggests some softening in mining and oil & gas spending.
All told, Caterpillar stock is attractive for those who believe a working resolution to the China/U.S. trade conflict will be found, and/or that China's economic growth will get back on track in 2019. If one or both of those are the case, then the current decline is a good buying opportunity. However, don't buy the stock if you are worried about a prolonged trade conflict and/or a downtrend in energy and mining commodity prices.
10 stocks we like better than Caterpillar
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Cummins. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Her positive view is backed by Deere's 2019 outlook for its construction & forestry segment net sales to grow 15% in 2019, with growth excluding the Wirtgen acquisition forecast to be 10%. The construction market looks solid -- Deere's outlook confirms that -- but Cummins management's commentary suggests some softening in mining and oil & gas spending. Let's take a look at what was said and how it matches up with what competitors like Deere (NYSE: DE) and Cummins (NYSE: CMI) have been saying.
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Construction outlook Furthermore, Campbell sought to highlight the construction industries and energy & transportation segments' exposure to infrastructural spending: "We're just starting to see infrastructure spend increase, after many, many years of it continuing to decline." The construction market looks solid -- Deere's outlook confirms that -- but Cummins management's commentary suggests some softening in mining and oil & gas spending. Let's take a look at what was said and how it matches up with what competitors like Deere (NYSE: DE) and Cummins (NYSE: CMI) have been saying.
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Construction outlook Furthermore, Campbell sought to highlight the construction industries and energy & transportation segments' exposure to infrastructural spending: "We're just starting to see infrastructure spend increase, after many, many years of it continuing to decline." China Turning to the tricky issue of the impact of a potential slowdown in China on Caterpillar, she appeared to echo the comments made by CEO Jim Umpleby on Caterpillar's third-quarter earnings call when he said that China only represents 5% to 10% of the company's sales. Let's take a look at what was said and how it matches up with what competitors like Deere (NYSE: DE) and Cummins (NYSE: CMI) have been saying.
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Her positive view is backed by Deere's 2019 outlook for its construction & forestry segment net sales to grow 15% in 2019, with growth excluding the Wirtgen acquisition forecast to be 10%. The construction market looks solid -- Deere's outlook confirms that -- but Cummins management's commentary suggests some softening in mining and oil & gas spending. Let's take a look at what was said and how it matches up with what competitors like Deere (NYSE: DE) and Cummins (NYSE: CMI) have been saying.
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0b8a74ac-6760-4d6b-9219-9285ee5727d0
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721883.0
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2018-12-21 00:00:00 UTC
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Deere (DE) Up 2% Since Last Earnings Report: Can It Continue?
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DE
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https://www.nasdaq.com/articles/deere-de-up-2-since-last-earnings-report%3A-can-it-continue-2018-12-21
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nan
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nan
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It has been about a month since the last earnings report for Deere (DE). Shares have added about 2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Deere due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Deere Q4 Earnings Miss, Stock Down on Weak FY19 View
Deerereported fourth-quarter fiscal 2018 (ended Oct 28, 2018) adjusted earnings of $2.30 per share, missing the Zacks Consensus Estimate of $2.44 by a margin of 6%.
Including tax adjustments related to the tax reform, the company reported earnings of $2.42 per share compared with the year-ago quarter's figure of $1.57 per share. Third-quarter performance benefited from favorable market conditions and positive customer response to the company's product lineup comprising advanced technology and product features. Further, cost management and pricing actions to counter cost pressures for raw materials and freight aided results.
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $8.3 billion, surging 18% year over year. Revenues missed the Zacks Consensus Estimate of $8.59 billion.
The acquisition of the Wirtgen Group in December 2017 added 11% to net sales in the fiscal fourth quarter. Gain from price realization of 2% was offset by an unfavorable currency translation impact of 3%. Region wise, equipment net sales increased 21% in the United States and Canada, and 13% in the rest of the world. Total net sales (including financial services and others) came in at $9.4 billion, up 17% year over year.
Operational Update
Cost of sales in the quarter increased 18% year over year to $6.4 billion. Gross profit in the reported quarter came in at $1.96 billion, advancing 16% year over year. Selling, administrative and general expenses increased 6% year over year to $899 million. Equipment operations reported operating profit of $862 million in the quarter compared with $680 million in the prior-year quarter.
The Wirtgen acquisition contributed $79 million to the operating income in the quarter under review. Apart from the contribution from the Wirtgen acquisition, higher shipment volumes, price realization and lower warranty costs also drove results. However, these gains were partially offset by higher production costs, research and development expenses and unfavorable effects of foreign currency exchange. Total operating profit (including financial services) increased to $1.06 billion from $0.8 billion reported in the year-ago quarter.
Segment Performance
Agriculture & Turf segment's sales were up 3% year over year to $5.6 billion, primarily driven by higher shipment volumes and price realization offset by an unfavorable currency-translation impact. Operating profit at the segment declined 5% year over year to $567 million, owing to higher production costs, unfavorable effects of foreign-currency exchange and higher research and development costs, partially mitigated by higher shipment volumes and price realization.
Construction & Forestry sales increased 65% year over year to $2.74 billion from the prior-year quarter, aided by the Wirtgen acquisition, higher shipment volumes, price realization and lower warranty-related claims somewhat offset by unfavorable foreign exchange. This segment reported operating profit of $295 million, up a whopping 243% year over year. The Wirtgen acquisition contributed operating profit of $79 million for the quarter. The above-mentioned factors that led to sales growth were instrumental in driving the improvement in operating profit. However, higher production costs were a deterrent.
Net revenues at Deere's Financial Services division totaled $851 million in the reported quarter, up 9% year over year. The segment's operating profit came in at $201 million, an increase of 1% year over year.
Financial Update
Deere reported cash and cash equivalents of $3.9 billion at the end of the fiscal 2018 compared with $9.3 billion at the end of the prior fiscal. Cash flow from operations was $1.8 billion in fiscal 2018, compared with cash inflow of $2.2 billion in the prior fiscal. At the end of the fiscal, long-term borrowing totaled $27 billion, up from $26 billion at the end of prior fiscal.
Fiscal 2018 Performance
Deere reported adjusted earnings of $9.39 per share in fiscal 2018, falling short of the Zacks Consensus Estimate of $9.51. Including tax adjustments related to the tax reform, the company reported earnings of $7.24 per share in the fiscal, an improvement of 8% year over year.
Net sales of equipment operations improved 29% year over year to $33.3 billion but missed the Zacks Consensus Estimate of $33.4 billion. Total net sales (including financial services and others) came in at $37.4 billion, up 26% year over year.
Fiscal 2019 Outlook
Deere expects equipment sales to rise 7% in fiscal 2019 from fiscal 2018. The Wirtgen acquisition will contribute about 2% to net sales for the fiscal. The forecast factors an unfavorable impact of 2% for foreign-currency translation for fiscal.
For fiscal 2018, Deere anticipates net sales to increase about 7% year over year and projects net income of about $3.6 billion.
Growth in global agricultural and construction equipment markets will drive Deere. The company noted that agricultural equipment is being propelled by replacement demand despite tensions over global trade and other geopolitical issues.
Segment wise, Deere estimates Agriculture and Turf equipment sales to increase about 3% in fiscal 2019 and global sales for Construction & Forestry equipment to rise 15%. The outlook for adjusted net income from Financial Services has been set at $630 million for fiscal 2019.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
Currently, Deere has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Deere has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. However, these gains were partially offset by higher production costs, research and development expenses and unfavorable effects of foreign currency exchange. It has been about a month since the last earnings report for Deere (DE).
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Operating profit at the segment declined 5% year over year to $567 million, owing to higher production costs, unfavorable effects of foreign-currency exchange and higher research and development costs, partially mitigated by higher shipment volumes and price realization. Construction & Forestry sales increased 65% year over year to $2.74 billion from the prior-year quarter, aided by the Wirtgen acquisition, higher shipment volumes, price realization and lower warranty-related claims somewhat offset by unfavorable foreign exchange. Segment wise, Deere estimates Agriculture and Turf equipment sales to increase about 3% in fiscal 2019 and global sales for Construction & Forestry equipment to rise 15%.
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Operating profit at the segment declined 5% year over year to $567 million, owing to higher production costs, unfavorable effects of foreign-currency exchange and higher research and development costs, partially mitigated by higher shipment volumes and price realization. For fiscal 2018, Deere anticipates net sales to increase about 7% year over year and projects net income of about $3.6 billion. It has been about a month since the last earnings report for Deere (DE).
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It has been about a month since the last earnings report for Deere (DE). Shares have added about 2% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Deere due for a pullback?
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52a3117f-c655-423e-a43f-392262a6743b
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721884.0
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2018-12-20 00:00:00 UTC
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Deere (DE) Stock Moves -0.99%: What You Should Know
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DE
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https://www.nasdaq.com/articles/deere-de-stock-moves-0.99%3A-what-you-should-know-2018-12-20
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nan
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nan
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Deere (DE) closed the most recent trading day at $144.64, moving -0.99% from the previous trading session. This change was narrower than the S&P 500's 1.58% loss on the day. Meanwhile, the Dow lost 1.99%, and the Nasdaq, a tech-heavy index, lost 1.63%.
Prior to today's trading, shares of the agricultural equipment manufacturer had gained 2.96% over the past month. This has outpaced the Industrial Products sector's loss of 8.44% and the S&P 500's loss of 6.62% in that time.
DE will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2019. On that day, DE is projected to report earnings of $1.78 per share, which would represent year-over-year growth of 35.88%. Our most recent consensus estimate is calling for quarterly revenue of $6.90 billion, up 15.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.43 per share and revenue of $35.94 billion. These totals would mark changes of +21.73% and +7.78%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for DE. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.74% lower. DE currently has a Zacks Rank of #3 (Hold).
In terms of valuation, DE is currently trading at a Forward P/E ratio of 12.78. Its industry sports an average Forward P/E of 14.39, so we one might conclude that DE is trading at a discount comparatively.
It is also worth noting that DE currently has a PEG ratio of 1.43. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DE's industry had an average PEG ratio of 1.43 as of yesterday's close.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DE in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Deere (DE) closed the most recent trading day at $144.64, moving -0.99% from the previous trading session. Meanwhile, the Dow lost 1.99%, and the Nasdaq, a tech-heavy index, lost 1.63%. DE will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2019.
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Click to get this free report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Deere (DE) closed the most recent trading day at $144.64, moving -0.99% from the previous trading session. Meanwhile, the Dow lost 1.99%, and the Nasdaq, a tech-heavy index, lost 1.63%.
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Deere (DE) closed the most recent trading day at $144.64, moving -0.99% from the previous trading session. Meanwhile, the Dow lost 1.99%, and the Nasdaq, a tech-heavy index, lost 1.63%. DE will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2019.
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Deere (DE) closed the most recent trading day at $144.64, moving -0.99% from the previous trading session. Meanwhile, the Dow lost 1.99%, and the Nasdaq, a tech-heavy index, lost 1.63%. DE will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2019.
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d899ff69-ac06-4a24-a1f6-edab95d83a8c
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721885.0
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2018-12-15 00:00:00 UTC
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Validea Peter Lynch Strategy Daily Upgrade Report - 12/15/2018
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DE
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https://www.nasdaq.com/articles/validea-peter-lynch-strategy-daily-upgrade-report-12152018-2018-12-15
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nan
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nan
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The following are today's upgrades for Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch . This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
MODINE MANUFACTURING CO. ( MOD ) is a small-cap value stock in the Auto & Truck Parts industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Modine Manufacturing Company provides engineered heat transfer systems and heat transfer components for use in on-highway and off-highway original equipment manufacturer (OEM) vehicular applications, and for sale into an array of building, industrial and refrigeration markets. The Company's products include radiators and radiator cores, exhaust gas recirculation coolers, building heating, ventilating and air conditioning (HVAC) equipment, and coils. Its segments include Americas, Europe, Asia and Building HVAC. Its Americas segment consists of vehicular and industrial original equipment products in North America and South America, as well as aftermarket products in South America. Its Europe segment consists of vehicular and industrial original equipment products in Europe. Its Asia segment consists of vehicular and industrial original equipment products in Asia. Its Building HVAC segment consists of building heating, ventilating and air conditioning products throughout the world.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
FIFTH THIRD BANCORP ( FITB ) is a large-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 91% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Fifth Third Bancorp is a bank holding company and a financial holding company. The Company conducts its principal lending, deposit gathering, transaction processing and service advisory activities through its banking and non-banking subsidiaries from banking centers located throughout the Midwestern and Southeastern regions of the United States. It operates through four segments: Commercial Banking, Branch Banking, Consumer Lending, and Wealth and Asset Management. It diversifies its loan and lease portfolio by offering a range of loan and lease products with various payment terms and rate structures. It offers commercial and industrial loans, commercial mortgage loans, commercial construction loans, commercial leases, residential mortgage loans, home equity, automobile loans, credit card, and other consumer loans and leases. It offers various types of deposits, such as demand deposits, interest checking deposits, savings deposits, money market deposits and transaction deposits.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
GENCOR INDUSTRIES, INC. ( DE ) ( GENC ) is a small-cap value stock in the Constr. & Agric. Machinery industry. The rating according to our strategy based on Peter Lynch changed from 72% to 87% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Gencor Industries, Inc. is a manufacturer of heavy machinery used in the production of highway construction materials, synthetic fuels and environmental control equipment. The Company designs, manufactures and sells machinery and related equipment used primarily for the production of asphalt and highway construction materials. Its geographical segments are United States and Other. The Company's principal products include asphalt plants, combustion systems and fluid heat transfer systems. It also manufactures related asphalt plant equipment, including hot mix storage silos, fabric filtration systems, cold feed bins and other plant components. The Company also manufactures soil remediation machinery, as well as combustion systems for rotary dryers, kilns, fume and liquid incinerators and fuel heaters. Its General Combustion subsidiary also manufactures the Hy-Way heat and Beverley lines of thermal fluid heat transfer systems and specialty storage tanks for an array of industry uses.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
AVIS BUDGET GROUP INC. (CAR) is a small-cap value stock in the Rental & Leasing industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Avis Budget Group Inc. is a provider of vehicle rental and car sharing services. The Company operates three brands, which include Avis, Budget and Zipcar. Avis and Budget are rental car suppliers. It also owns Payless, which is a car rental brand; Apex, which is a car rental brand in New Zealand and Australia; Maggiore, a vehicle rental brand in Italy, and France Cars, which operates light commercial vehicle fleets in France. The Company operates in two segments: Americas and International. The Americas segment provides and licenses the Company's brands to third parties for vehicle rentals and ancillary products and services in North America, South America, Central America and the Caribbean, and operates its car sharing business in certain of these markets. The International segment provides and licenses the Company's brands to third parties for vehicle rentals and ancillary products and services in Europe, the Middle East, Africa, Asia, Australia and New Zealand.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
WALGREENS BOOTS ALLIANCE INC (WBA) is a large-cap growth stock in the Retail (Drugs) industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Walgreens Boots Alliance, Inc., is a holding company. The Company is a pharmacy-led health and wellbeing company. The Company operates through three segments: Retail Pharmacy USA, Retail Pharmacy International and Pharmaceutical Wholesale. The Retail Pharmacy USA segment consists of the Walgreen Co. (Walgreens) business, which includes the operation of retail drugstores, care clinics and providing specialty pharmacy services. The Retail Pharmacy International segment consists primarily of the Alliance Boots pharmacy-led health and beauty stores, optical practices and related contract manufacturing operations. The Pharmaceutical Wholesale segment consists of the Alliance Boots pharmaceutical wholesaling and distribution businesses. The Company's portfolio of retail and business brands includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as global health and beauty product brands, including No7, Botanics, Liz Earle and Soap & Glory.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
SCHNEIDER NATIONAL INC (SNDR) is a mid-cap value stock in the Trucking industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Schneider National, Inc. is a provider of transportation, logistics and related services. The Company's transportation solutions include one-way, intermodal, dedicated, bulk, transport management, trans loading services, international services and Schneider payment services. Its supply chain management and consulting services include logistics solution design, global supply chain services, enterprise and market entry assistance, and sourcing and compliance. Schneider Logistics is the subsidiary of the Company, which provides supply chain management technology, managed services, engineering services and freight payment. The Company operates approximately 10,000 tractors, around 28,800 trailers and around 14,300 containers. It has operations in around 36 locations in Canada, the United States and Mexico.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Peter Lynch has returned 335.77% vs. 159.89% for the S&P 500. For more details on this strategy, click here
About Peter Lynch : Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea : Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm's underlying fundamentals and the stock's valuation. The International segment provides and licenses the Company's brands to third parties for vehicle rentals and ancillary products and services in Europe, the Middle East, Africa, Asia, Australia and New Zealand.
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Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm's underlying fundamentals and the stock's valuation. Company Description: Modine Manufacturing Company provides engineered heat transfer systems and heat transfer components for use in on-highway and off-highway original equipment manufacturer (OEM) vehicular applications, and for sale into an array of building, industrial and refrigeration markets.
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Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm's underlying fundamentals and the stock's valuation. Company Description: Modine Manufacturing Company provides engineered heat transfer systems and heat transfer components for use in on-highway and off-highway original equipment manufacturer (OEM) vehicular applications, and for sale into an array of building, industrial and refrigeration markets.
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Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm's underlying fundamentals and the stock's valuation. Company Description: Modine Manufacturing Company provides engineered heat transfer systems and heat transfer components for use in on-highway and off-highway original equipment manufacturer (OEM) vehicular applications, and for sale into an array of building, industrial and refrigeration markets.
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8814a223-746e-434a-b1f5-518d2738cc21
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721886.0
|
2018-12-13 00:00:00 UTC
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Deere (DE) Gains As Market Dips: What You Should Know
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DE
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https://www.nasdaq.com/articles/deere-de-gains-as-market-dips%3A-what-you-should-know-2018-12-13
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nan
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nan
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Deere (DE) closed the most recent trading day at $148.31, moving +0.11% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.02%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 0.39%.
Heading into today, shares of the agricultural equipment manufacturer had gained 0.62% over the past month, outpacing the Industrial Products sector's loss of 3.24% and the S&P 500's loss of 2.56% in that time.
DE will be looking to display strength as it nears its next earnings release, which is expected to be February 15, 2019. In that report, analysts expect DE to post earnings of $1.76 per share. This would mark year-over-year growth of 34.35%. Our most recent consensus estimate is calling for quarterly revenue of $6.82 billion, up 14.08% from the year-ago period.
DE's full-year Zacks Consensus Estimates are calling for earnings of $11.48 per share and revenue of $35.92 billion. These results would represent year-over-year changes of +22.26% and +7.72%, respectively.
Investors should also note any recent changes to analyst estimates for DE. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.79% lower. DE is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, DE is holding a Forward P/E ratio of 12.9. Its industry sports an average Forward P/E of 14.57, so we one might conclude that DE is trading at a discount comparatively.
Also, we should mention that DE has a PEG ratio of 1.44. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Farm Equipment was holding an average PEG ratio of 1.44 at yesterday's closing price.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DE's full-year Zacks Consensus Estimates are calling for earnings of $11.48 per share and revenue of $35.92 billion. It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Deere (DE) closed the most recent trading day at $148.31, moving +0.11% from the previous trading session.
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Click to get this free report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Deere (DE) closed the most recent trading day at $148.31, moving +0.11% from the previous trading session. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 0.39%.
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DE's full-year Zacks Consensus Estimates are calling for earnings of $11.48 per share and revenue of $35.92 billion. Deere (DE) closed the most recent trading day at $148.31, moving +0.11% from the previous trading session. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 0.39%.
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In that report, analysts expect DE to post earnings of $1.76 per share. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Deere (DE) closed the most recent trading day at $148.31, moving +0.11% from the previous trading session.
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86984289-b48d-46f2-a181-9f62b7ca5646
|
721887.0
|
2018-12-11 00:00:00 UTC
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Could Kratos Stock Gain Nearly 50% in 12 Months? 1 Analyst Thinks So
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DE
|
https://www.nasdaq.com/articles/could-kratos-stock-gain-nearly-50-12-months-1-analyst-thinks-so-2018-12-11
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nan
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nan
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Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope...
Kratos Defense & Security (NASDAQ: KTOS) stockholders have been taken on a wild ride these past couple of months. After losing nearly 20% of their value during the tech rout in October , shares soared more than 20% in the first week of November alone after it was reported that the U.S. military is running test flights for drone-on-drone aerial combat .
Last week, Kratos stock enjoyed another 7% spike after Dealreporter highlighted speculation that someone (or someones) in the defense industry might be moving to acquire Kratos and its burgeoning drones business.
That news prompted analysts at Canaccord Genuity to reiterate a price target of $16 on buy-rated Kratos Friday. This week, TheFly.com is reporting that analysts at Goldman Sachs have raised their rating on Kratos stock to buy -- with a $20 price target.
Here's what you need to know.
Introducing Kratos
For those not familiar with the company, a brief review may be in order.
Kratos is a small defense company operating in two main lines of business. The company's flagship government solutions division specializes in electronics and satellite communication services, and provides most of its revenue (about $480 million over the past 12 months, according to data from S&P Global Market Intelligence ) and profits ($10 million, pre-tax). It's a steady business, but not particularly high growth, with sales actually falling a fraction of 1% over the last year.
Kratos's other business, however -- drones -- is a bit more exciting. Kratos makes two main kinds of drones: target drones for the military to practice shooting at, but also several new types of jet-powered combat drones, that the company believes will one day be capable of doing their own shooting.
This is the growth driver at Kratos, with sales growing 32% over the past year (to $139 million) and profits of more than $6 million.
What Goldman Sachs likes about Kratos
In its note upgrading the company, Goldman Sachs predicts this growth will continue, and even accelerate, in years to come. Indeed, Goldman goes so far as to predict that by 2025, the company's "unmanned" division "could be 10 times today's size."
If this is correct, even assuming no growth in what is today Kratos' biggest division (government solutions), then six years from now, unmanned systems could be pulling down $1.4 billion in annual sales, or roughly twice today's sales for the entire company.
In fact, though, the rest of Kratos probably will grow quite a bit, because as Goldman points out, drones may be the sexiest part of the company's business, but it's not the only part growing. Indeed, Goldman sees a "long list of new growth programs" at Kratos in addition to drones. These might include, for example, the $29 million contract that Kratos was awarded last month to develop "prototype technologies, components and subsystems for the enhancement of existing or new Directed Energy (DE) systems" (i.e., laser cannons ) under the U.S. Army's "Counter Rocket, Artillery and Mortar (C-RAM), Counter Unmanned aircraft systems (C-UAS), and/or Counter Intel, Surveillance, Reconnaissance (C-ISR)" programs. Kratos was also recently identified as the cybersecurity manager of data transfer and routing operations for Amazon.com 's new AWS Ground Station.
Attempting to value Kratos
Tallying up all the ways it sees for Kratos to grow, Goldman Sachs suggests a 20% revenue growth rate through 2020 is not out of the question for the company. Farther out, the analyst thinks Kratos could continue growing at a double-digit rate "through the middle of the next decade."
There is, however, some question about precisely what profits Goldman Sachs sees Kratos producing from this revenue surge. Although profitable on an operating basis, Kratos still hasn't managed to report positive net earnings since 2015, nor positive free cash flow since 2013. Like Goldman, I feel optimistic about the company's prospects -- but even so, I admit that I find it hard to assign a value to Kratos stock without positive earnings, or at least a positive free cash flow number, to work from.
Here's hoping that when Kratos Defense & Security reports its next round of earnings news a couple months from now, the company will be able to show not just an ability to win contracts -- but to profit from them as well.
10 stocks we like better than Kratos Defense and Security Solutions
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Today, we're taking one high-profile Wall Street pick and putting it under the microscope... Kratos Defense & Security (NASDAQ: KTOS) stockholders have been taken on a wild ride these past couple of months. Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. Last week, Kratos stock enjoyed another 7% spike after Dealreporter highlighted speculation that someone (or someones) in the defense industry might be moving to acquire Kratos and its burgeoning drones business.
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Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. Today, we're taking one high-profile Wall Street pick and putting it under the microscope... Kratos Defense & Security (NASDAQ: KTOS) stockholders have been taken on a wild ride these past couple of months. Last week, Kratos stock enjoyed another 7% spike after Dealreporter highlighted speculation that someone (or someones) in the defense industry might be moving to acquire Kratos and its burgeoning drones business.
|
Last week, Kratos stock enjoyed another 7% spike after Dealreporter highlighted speculation that someone (or someones) in the defense industry might be moving to acquire Kratos and its burgeoning drones business. Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. Today, we're taking one high-profile Wall Street pick and putting it under the microscope... Kratos Defense & Security (NASDAQ: KTOS) stockholders have been taken on a wild ride these past couple of months.
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Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. Today, we're taking one high-profile Wall Street pick and putting it under the microscope... Kratos Defense & Security (NASDAQ: KTOS) stockholders have been taken on a wild ride these past couple of months. Last week, Kratos stock enjoyed another 7% spike after Dealreporter highlighted speculation that someone (or someones) in the defense industry might be moving to acquire Kratos and its burgeoning drones business.
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367fc897-3681-4945-a7a1-402b396a2c50
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721888.0
|
2018-12-10 00:00:00 UTC
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Stock Market News For Dec 10, 2018
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DE
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https://www.nasdaq.com/articles/stock-market-news-for-dec-10-2018-2018-12-10
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nan
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nan
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Wall Street declined sharply on Friday as initial enthusiasm over a solution to the ongoing trade war the United States and China faded. Arrest of the CFO of Chinese tech-behemoth Huawei Technologies and news Chinese hackers being charged by federal prosecutors has severely shaken investors' faith in stock markets. All three major stock indexes closed deep in the red for the day as well as for the week.
The Dow Jones Industrial Average (DJI) closed at 24,388.95, plunging 2.2% or 558.72 points. The S&P 500 Index (INX) shed 2.3% to close at 2,633.08. Meanwhile, the Nasdaq Composite Index (IXIC) closed at 6,969.25, declining 3.1% or 219.01 points. A total of 8.7 billion shares were traded on Friday, higher than the last 20-session average of 7.9 billion shares. Decliners outnumbered advancers on the NYSE by 2.08-to-1 ratio. On the Nasdaq, decliners had an edge over advancers by 2.63-to-1 ratio. The CBOE VIX increased 9.6% to close at 23.23.
How Did the Benchmarks Perform?
The Dow ended in negative territory for the third straight day. The blue-chip index has also finished in the red year to date. Notably, all 30 components of the index closed in the red.
The S&P 500 also closed in negative territory for the third successive day. The Technology Select Sector SPDR (XLK), Consumer Discretionary Select Sector SPDR (XLY), Industrials Select Sector SPDR (XLI), Health Care Select Sector SPDR (XLV) and Materials Select Sector SPDR (XLB) lost 3.5%, 3%, 2.6%, 2.5% and 2.4% respectively. The benchmark index is in the red year to date. Notably, ten out of 11 sectors of the S&P 500 closed in the red while only one finished in the green.
The tech-heavy Nasdaq Composite closed in the red reversing its previous trading day's gain due to lackluster performance by large-cap tech giants.
US-China Trade Solution in Jeopardy
Hopes of an amicable solution to the trade related conflict between the United States-China following the Dec 1 meeting between President Trump and his Chinese counterpart Xi Jinping have all but faded out.
Trade fears were renewed after Canadian authorities in Vancouver arrested Meng Wanzhou, Huawei Technologies Co.'s chief financial officer and daughter of its founder Ren Zhengfei on Dec 1. Notably, Wanzhou's detention for alleged violation of Iranian sanctions by Chinese tech-behemoth Huawei Technologies Co was carried out at the request of the U.S. government.
On Dec 9, China summoned the U.S. ambassador to Beijing to protest the detention of Meng Wanzhou in Canada at Washington's behest and demanded that the U.S. government cancel the order for her arrest.
The situation worsened after The Wall Street Journal reported that federal prosecutors are likely to press charges on Chinese hackers on account of hacking valuable technologies of the U.S. high-tech firms. Moreover, on Dec 9, U.S. Trade Representative Robert Lighthizer said that he considers Mar 1 "a hard deadline" to reach a deal with China. Failing which the tariff war is likely to go on.
Consequently, shares of trade-sensitive stocks like Deere & Co. DE and Apple Inc. AAPL plummeted 4.6% and 3.6%, respectively. Both stocks currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Economic Data
On Dec 7, the Department of Labor reported that U.S. economy created 155,000 non-farm jobs in November lagging the consensus estimate of 198,000. Employment in October was revised downward to 237,000 from the figure of 250,000 reported earlier. Unemployment rate, however, stood at 49-year low of 3.7%, at par with the consensus estimate.
The amount of money the average worker earns increased $0.06 to $27.35 or 0.2% an hour in November, missing the consensus estimate of an increase of 0.3%. However, Yearly increase in hourly wages remained flat at 3.1%, its highest since 2009.
Weekly Roundup
In the first week of December, all three major stock indexes - the Dow, S&P 500 and Nasdaq Composite - plummeted. The Dow plunged nearly 1,149 points or 4.5%, the S&P 500 declined 97 points or 4.6% and the Nasdaq Composite dropped 361 points or 4.9%. The first week of December was the worst week for U.S. stocks since March.
U.S. stocks rallied on Monday following temporary cease fire of trade-related conflict between the United States and China. However, Wall Street routed since Tuesday as yields on 2-Year US Treasury Note and 3-Year US Treasury Note surpassed the yield on 5-Year US Treasury Note. Moreover, investors became skeptical regarding a permanent solution to the United States and China trade conflicts.
The situation further aggravated following the detention of Meng Wanzhou, Chinese tech-giant Huawei Technologies Co.'s chief financial officer at Vancouver in Canada. Herarrest was carried out at the request of the U.S. government which prompted China to summon the U.S. ambassador to Beijing to protest the detention and demanded her immediate release.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Trade fears were renewed after Canadian authorities in Vancouver arrested Meng Wanzhou, Huawei Technologies Co.'s chief financial officer and daughter of its founder Ren Zhengfei on Dec 1. On Dec 9, China summoned the U.S. ambassador to Beijing to protest the detention of Meng Wanzhou in Canada at Washington's behest and demanded that the U.S. government cancel the order for her arrest. The situation worsened after The Wall Street Journal reported that federal prosecutors are likely to press charges on Chinese hackers on account of hacking valuable technologies of the U.S. high-tech firms.
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Trade fears were renewed after Canadian authorities in Vancouver arrested Meng Wanzhou, Huawei Technologies Co.'s chief financial officer and daughter of its founder Ren Zhengfei on Dec 1. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Wall Street declined sharply on Friday as initial enthusiasm over a solution to the ongoing trade war the United States and China faded.
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All three major stock indexes closed deep in the red for the day as well as for the week. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report To read this article on Zacks.com click here. Wall Street declined sharply on Friday as initial enthusiasm over a solution to the ongoing trade war the United States and China faded.
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Wall Street declined sharply on Friday as initial enthusiasm over a solution to the ongoing trade war the United States and China faded. All three major stock indexes closed deep in the red for the day as well as for the week. Meanwhile, the Nasdaq Composite Index (IXIC) closed at 6,969.25, declining 3.1% or 219.01 points.
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22cbd674-b98c-499c-938d-4b41d7237ae7
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721889.0
|
2018-12-10 00:00:00 UTC
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How The Pieces Add Up: IWL Headed For $73
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DE
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https://www.nasdaq.com/articles/how-pieces-add-iwl-headed-73-2018-12-10
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares Russell Top 200 ETF (Symbol: IWL), we found that the implied analyst target price for the ETF based upon its underlying holdings is $72.95 per unit.
With IWL trading at a recent price near $61.46 per unit, that means that analysts see 18.69% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IWL's underlying holdings with notable upside to their analyst target prices are Adobe Inc (Symbol: ADBE), Air Products & Chemicals Inc (Symbol: APD), and Deere & Co. (Symbol: DE). Although ADBE has traded at a recent price of $238.00/share, the average analyst target is 22.18% higher at $290.79/share. Similarly, APD has 20.81% upside from the recent share price of $157.16 if the average analyst target price of $189.87/share is reached, and analysts on average are expecting DE to reach a target price of $175.92/share, which is 19.46% above the recent price of $147.26. Below is a twelve month price history chart comparing the stock performance of ADBE, APD, and DE:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although ADBE has traded at a recent price of $238.00/share, the average analyst target is 22.18% higher at $290.79/share. Below is a twelve month price history chart comparing the stock performance of ADBE, APD, and DE: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments?
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Three of IWL's underlying holdings with notable upside to their analyst target prices are Adobe Inc (Symbol: ADBE), Air Products & Chemicals Inc (Symbol: APD), and Deere & Co. (Symbol: DE). Similarly, APD has 20.81% upside from the recent share price of $157.16 if the average analyst target price of $189.87/share is reached, and analysts on average are expecting DE to reach a target price of $175.92/share, which is 19.46% above the recent price of $147.26. 10 ETFs With Most Upside To Analyst Targets » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. Similarly, APD has 20.81% upside from the recent share price of $157.16 if the average analyst target price of $189.87/share is reached, and analysts on average are expecting DE to reach a target price of $175.92/share, which is 19.46% above the recent price of $147.26. Below is a twelve month price history chart comparing the stock performance of ADBE, APD, and DE: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. With IWL trading at a recent price near $61.46 per unit, that means that analysts see 18.69% upside for this ETF looking through to the average analyst targets of the underlying holdings. Below is a twelve month price history chart comparing the stock performance of ADBE, APD, and DE: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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003fee9e-5a0f-4f2a-8035-e9f1d8bd1377
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721890.0
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2018-12-07 00:00:00 UTC
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Option buyers look for Deere & Co. to rise
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DE
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https://www.nasdaq.com/articles/option-buyers-look-deere-co-rise-2018-12-07
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nan
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nan
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Traders are looking Friday for a bounce from Deere and Co. ( DE ). So far, 2,710 contracts of the March 155 call have changed hands, against open interest of 498 contracts. The bulk of today's contracts moved in a single trade of 2,569 contracts at 11:59 this morning. Pricing on that trade, and most of the rest of today's trades points toward these new contracts being opened from the buy side.
InvestorsKeyhole Trade Alert
IK-> The technicals for DE ($148.71 down $5.57) are bullish with a sideways trend. The stock has support around $146.70. Look at the Jan. 120/125 bull-put spread for a 31-cent credit. That's a 6.6% return and the stock has to fall by 15.9% to cause a problem. [InvestorsKeyhole, various news and data services]
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Originally published on InvestorsObserver.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Traders are looking Friday for a bounce from Deere and Co. ( DE ). InvestorsKeyhole Trade Alert IK-> The technicals for DE ($148.71 down $5.57) are bullish with a sideways trend. The bulk of today's contracts moved in a single trade of 2,569 contracts at 11:59 this morning.
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The bulk of today's contracts moved in a single trade of 2,569 contracts at 11:59 this morning. Traders are looking Friday for a bounce from Deere and Co. ( DE ). Pricing on that trade, and most of the rest of today's trades points toward these new contracts being opened from the buy side.
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The bulk of today's contracts moved in a single trade of 2,569 contracts at 11:59 this morning. Pricing on that trade, and most of the rest of today's trades points toward these new contracts being opened from the buy side. Traders are looking Friday for a bounce from Deere and Co. ( DE ).
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Traders are looking Friday for a bounce from Deere and Co. ( DE ). The bulk of today's contracts moved in a single trade of 2,569 contracts at 11:59 this morning. Pricing on that trade, and most of the rest of today's trades points toward these new contracts being opened from the buy side.
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6620154b-3490-40b0-accd-e0c8394214dd
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721891.0
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2018-12-07 00:00:00 UTC
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Noteworthy Friday Option Activity: DE, RHT, LRCX
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DE
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity-de-rht-lrcx-2018-12-07
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 16,116 contracts have traded so far, representing approximately 1.6 million underlying shares. That amounts to about 55.3% of DE's average daily trading volume over the past month of 2.9 million shares. Especially high volume was seen for the $150 strike put option expiring June 21, 2019 , with 4,020 contracts trading so far today, representing approximately 402,000 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $150 strike highlighted in orange:
Red Hat Inc (Symbol: RHT) options are showing a volume of 13,166 contracts thus far today. That number of contracts represents approximately 1.3 million underlying shares, working out to a sizeable 55.1% of RHT's average daily trading volume over the past month, of 2.4 million shares. Particularly high volume was seen for the $140 strike put option expiring March 15, 2019 , with 12,500 contracts trading so far today, representing approximately 1.2 million underlying shares of RHT. Below is a chart showing RHT's trailing twelve month trading history, with the $140 strike highlighted in orange:
And Lam Research Corp (Symbol: LRCX) options are showing a volume of 15,255 contracts thus far today. That number of contracts represents approximately 1.5 million underlying shares, working out to a sizeable 52.4% of LRCX's average daily trading volume over the past month, of 2.9 million shares. Particularly high volume was seen for the $155 strike call option expiring February 15, 2019 , with 1,911 contracts trading so far today, representing approximately 191,100 underlying shares of LRCX. Below is a chart showing LRCX's trailing twelve month trading history, with the $155 strike highlighted in orange:
For the various different available expirations for DE options , RHT options , or LRCX options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $150 strike put option expiring June 21, 2019 , with 4,020 contracts trading so far today, representing approximately 402,000 underlying shares of DE. Particularly high volume was seen for the $140 strike put option expiring March 15, 2019 , with 12,500 contracts trading so far today, representing approximately 1.2 million underlying shares of RHT. Particularly high volume was seen for the $155 strike call option expiring February 15, 2019 , with 1,911 contracts trading so far today, representing approximately 191,100 underlying shares of LRCX.
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Below is a chart showing DE's trailing twelve month trading history, with the $150 strike highlighted in orange: Red Hat Inc (Symbol: RHT) options are showing a volume of 13,166 contracts thus far today. That number of contracts represents approximately 1.3 million underlying shares, working out to a sizeable 55.1% of RHT's average daily trading volume over the past month, of 2.4 million shares. That number of contracts represents approximately 1.5 million underlying shares, working out to a sizeable 52.4% of LRCX's average daily trading volume over the past month, of 2.9 million shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Deere & Co. (Symbol: DE), where a total of 16,116 contracts have traded so far, representing approximately 1.6 million underlying shares. Particularly high volume was seen for the $140 strike put option expiring March 15, 2019 , with 12,500 contracts trading so far today, representing approximately 1.2 million underlying shares of RHT. That number of contracts represents approximately 1.5 million underlying shares, working out to a sizeable 52.4% of LRCX's average daily trading volume over the past month, of 2.9 million shares.
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That number of contracts represents approximately 1.5 million underlying shares, working out to a sizeable 52.4% of LRCX's average daily trading volume over the past month, of 2.9 million shares. Particularly high volume was seen for the $155 strike call option expiring February 15, 2019 , with 1,911 contracts trading so far today, representing approximately 191,100 underlying shares of LRCX. Below is a chart showing LRCX's trailing twelve month trading history, with the $155 strike highlighted in orange: For the various different available expirations for DE options , RHT options , or LRCX options , visit StockOptionsChannel.com.
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2018-12-06 00:00:00 UTC
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Here's Why Deere & Company Stock Rallied 14.4% in November But Is Already Losing Ground
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DE
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https://www.nasdaq.com/articles/heres-why-deere-company-stock-rallied-144-november-already-losing-ground-2018-12-06
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What happened
After taking a near-10% hit in October, shares of Deere & Company (NYSE: DE) jumped right back on track last month, ending November with a solid 14.4% gain, according to data provided by S&P Global Market Intelligence .
I was watching Deere stock closely last month in anticipation of its upcoming fourth-quarter earnings and outlook for 2019 on Nov. 21. But if you think a stellar earnings report sent shares of the agricultural equipment powerhouse soaring, wait: Deere's numbers, in fact, fell short of Wall Street estimates. Instead, the stock's surge seemed to have more to do with management's views on one of the biggest concerns for Deere investors : tariffs.
So what
Deere's net equipment sales jumped 18% year over year in Q4, driving its fiscal 2018 equipment sales up 29% to $33.35 billion. The company netted a profit of $2.37 billion, clocking 10% growth over fiscal 2017.
For fiscal 2019, Deere foresees 7% growth in equipment sales and expects to earn $3.6 billion in net income. Now that sales growth pales in comparison to what the company achieved this fiscal year, but its earnings forecast is as solid as it can get. Four factors should help drive Deere's margins higher next year:
Lower cost of sales as raw material and freight costs are expected to ease.
Decremental selling, administrative, and general expenses as acquisitions fueled costs in 2018.
Decremental research and development expenditure.
Effective tax rate of around 25%-27% compared with an unusually high rate of 57% in 2018 thanks to the U.S. tax reform.
In short, Deere is on its way to another strong year. But there was more to the market's enthusiasm than just the numbers.
First, Deere's acquisition of the world's largest manufacturer of road-construction equipment, Wirtgen Group, in a $5.3 billion deal late last year appears to be paying off. In FY 2018, Deere's construction and forestry segment sales rocketed 78% and operating income grew nearly 1.5 times, with the bulk of it coming from Wirtgen. Deere projects segment sales to grow 15% in FY 2019.
Second and more importantly, Deere's management projects U.S. crop cash receipts next year to be around $120 billion, in line with this year's estimate despite the trade war between the U.S. and China, especially the latter's retaliatory hefty tariffs on agricultural commodity exports that has sent demand for key crops like soybeans from the U.S. plummeting. Because cash receipts and farm income directly influences how much farmers spend on equipment, the market welcomed Deere's views and drove the stock higher.
Now what
The November enthusiasm has failed to spill over to December, what with Deere shares losing nearly 7% in just the past two trading days as of this writing, partly because of a decline in sales of tractors and combines in October as reported by the Association of Equipment Manufacturers.
On the other side, President Trump's recent meeting with President Xi Jinping of China has fueled hopes of trade renegotiations, and China is reportedly already working on plans to boost trade with the U.S. As it stands, a truce between the two nations is all investors need to back up the truck on Deere even as they enjoy a 10% dividend hike that the company has just announced.
10 stocks we like better than Deere & Company
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David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Deere & Company wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened After taking a near-10% hit in October, shares of Deere & Company (NYSE: DE) jumped right back on track last month, ending November with a solid 14.4% gain, according to data provided by S&P Global Market Intelligence . But if you think a stellar earnings report sent shares of the agricultural equipment powerhouse soaring, wait: Deere's numbers, in fact, fell short of Wall Street estimates. Now what The November enthusiasm has failed to spill over to December, what with Deere shares losing nearly 7% in just the past two trading days as of this writing, partly because of a decline in sales of tractors and combines in October as reported by the Association of Equipment Manufacturers.
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So what Deere's net equipment sales jumped 18% year over year in Q4, driving its fiscal 2018 equipment sales up 29% to $33.35 billion. For fiscal 2019, Deere foresees 7% growth in equipment sales and expects to earn $3.6 billion in net income. Second and more importantly, Deere's management projects U.S. crop cash receipts next year to be around $120 billion, in line with this year's estimate despite the trade war between the U.S. and China, especially the latter's retaliatory hefty tariffs on agricultural commodity exports that has sent demand for key crops like soybeans from the U.S. plummeting.
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So what Deere's net equipment sales jumped 18% year over year in Q4, driving its fiscal 2018 equipment sales up 29% to $33.35 billion. Because cash receipts and farm income directly influences how much farmers spend on equipment, the market welcomed Deere's views and drove the stock higher. 10 stocks we like better than Deere & Company When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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Instead, the stock's surge seemed to have more to do with management's views on one of the biggest concerns for Deere investors : tariffs. So what Deere's net equipment sales jumped 18% year over year in Q4, driving its fiscal 2018 equipment sales up 29% to $33.35 billion. For fiscal 2019, Deere foresees 7% growth in equipment sales and expects to earn $3.6 billion in net income.
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2018-12-05 00:00:00 UTC
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On Our Radar: This Unlikely Industry Will Be the Next to Embrace Robotics
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https://www.nasdaq.com/articles/our-radar-unlikely-industry-will-be-next-embrace-robotics-2018-12-05
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We've seen some huge milestones from the world's most innovative companies in recent years. Tesla (NASDAQ: TSLA) has hit its ambitious production targets and is now rolling out more than 5,000 of its Model 3 electric vehicles every week. Amazon (NASDAQ: AMZN) has won the love of its customers, and Prime now has more than 100 million paying members. And Apple (NASDAQ: AAPL) continues to create demand for its flagship smartphones and now ships more than 200 million iPhones every year.
But there is an unsung hero behind each of these headlines: the robotic technology that makes these accomplishments even possible. Tesla's autonomous robots are assembling the vehicles on its manufacturing lines, Amazon's Kiva robots are tirelessly pulling items in warehouses to provide for two-day shipping, and Apple's suppliers are using machine vision to perfectly manufacture each of its smartphones to precise specifications.
These developments aren't groundbreaking news. Automotives, distribution, and tech hardware have used robots for years now. But the next industry set to embrace robotics might surprise you.
Planting the seeds for future growth
America has more than 2 million farms, which collectively produce nearly $140 billion worth of agricultural goods every year. But aside from the mechanical plow and the tractor, this industry hasn't been known for game-changing innovations.
But robotics might soon change that. Brian Gahsman, the portfolio manager of the AlphaCentric Global Innovations Fund , believes that agricultural robots could be a significant development for the entire industry. He sees large-equipment providers, such as Deere & Company (NYSE: DE) and AGCO (NYSE: AGCO) , plowing big money into automated machinery, and several farms are investing in robotics and navigation systems to improve efficiency and lower overall costs.
In the following interview, Gahsman explains where robots are being used in agriculture and names several companies that investors should consider. A partial transcript of the conversation is included below.
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{% render_component 'sa-returns-as-of' type='rg'%}
Partial Transcript
Motley Fool Explorer lead advisor Simon Erickson: Okay, perfect. And then just last question for you, Brian, as we're wrapping up here. Our audience is individual investors, very interested in the robotic space. Are there a few things that you would recommend other than just generally rising sales and more adoption, broader-based things, was there anything more specific that you would suggest investors should be watching in robotics and automation?
AlphaCentric Global Innovations Fund portfolio manager Brian Gahsman: Well, besides, obviously, the advancement in AI which are enabling these robotics and automation systems to work much more efficiently, there are always underfollowed areas that people aren't really looking at. Agricultural robotics, for instance. There's really no pure plays in that space, but there are a great deal of companies that are putting a lot of money into automating farming and agriculture, whether it be autonomous tractors to companies that are completely programming navigation systems that are retrofittable to current farm equipment that a farmer can actually, on an iPad, program its whole field, operations of how it works to go and facilitate that and we are running out of land in this world to feed all of the increasing amounts of mouths that we have to feed.
And so, I think the next really large mover or subgroup in this robotics and automation space is going to be agricultural robotics and automation. A couple companies to look at, maybe Raven Industries , they do what I was explaining with the retrofittable GPS automation for current farm equipment. Obviously, John Deere 's putting a lot of money into this space, AGCO ... So, that's definitely something on the horizon I would keep a very close eye on and, on top of that, I think that's actually happening right now, whether it's on the radar or not, is warehouse automation.
Warehouse automation, we have the largest distribution facilities. Let's use Amazon for an example. Their regional distribution facilities. We have companies such as KUKA and FANUC that are making strategic partnerships right now, just to completely automate those facilities. If you were to look at a company called Kardex , it trades in Switzerland, and look at some of the systems that they have in place that are sizable to an entire distribution facility. So, orders come in, the whole facility inside is completely closed off and sealed and there's automated picking, sorting, packaging, and the package gets pushed out the back. The automated warehouse or the smart warehouse, if you will, is probably one of the largest advancements. Very, very impressive that it's just slipped under the radar in the past year and that is spreading throughout the world to warehouses and manufacturing facilities.
Simon Erickson: Well, it definitely sounds like some underfollowed opportunities in agriculture and then also warehouse automation. Again, my guest this morning, Brian Gahsman, the portfolio manager of the AlphaCentric Global Innovations Fund. The ticker on that fund, if you're interested: GNXIX. Brian, thanks again for the time this morning.
Brian Gahsman: Thank you for having me.
Simon Erickson: Thanks again for tuning in. Until next time.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Simon Erickson owns shares of Amazon, Apple, and Tesla. The Motley Fool owns shares of and recommends Amazon, Apple, and Tesla. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Brian Gahsman, the portfolio manager of the AlphaCentric Global Innovations Fund , believes that agricultural robots could be a significant development for the entire industry. AlphaCentric Global Innovations Fund portfolio manager Brian Gahsman: Well, besides, obviously, the advancement in AI which are enabling these robotics and automation systems to work much more efficiently, there are always underfollowed areas that people aren't really looking at. There's really no pure plays in that space, but there are a great deal of companies that are putting a lot of money into automating farming and agriculture, whether it be autonomous tractors to companies that are completely programming navigation systems that are retrofittable to current farm equipment that a farmer can actually, on an iPad, program its whole field, operations of how it works to go and facilitate that and we are running out of land in this world to feed all of the increasing amounts of mouths that we have to feed.
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He sees large-equipment providers, such as Deere & Company (NYSE: DE) and AGCO (NYSE: AGCO) , plowing big money into automated machinery, and several farms are investing in robotics and navigation systems to improve efficiency and lower overall costs. AlphaCentric Global Innovations Fund portfolio manager Brian Gahsman: Well, besides, obviously, the advancement in AI which are enabling these robotics and automation systems to work much more efficiently, there are always underfollowed areas that people aren't really looking at. There's really no pure plays in that space, but there are a great deal of companies that are putting a lot of money into automating farming and agriculture, whether it be autonomous tractors to companies that are completely programming navigation systems that are retrofittable to current farm equipment that a farmer can actually, on an iPad, program its whole field, operations of how it works to go and facilitate that and we are running out of land in this world to feed all of the increasing amounts of mouths that we have to feed.
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AlphaCentric Global Innovations Fund portfolio manager Brian Gahsman: Well, besides, obviously, the advancement in AI which are enabling these robotics and automation systems to work much more efficiently, there are always underfollowed areas that people aren't really looking at. There's really no pure plays in that space, but there are a great deal of companies that are putting a lot of money into automating farming and agriculture, whether it be autonomous tractors to companies that are completely programming navigation systems that are retrofittable to current farm equipment that a farmer can actually, on an iPad, program its whole field, operations of how it works to go and facilitate that and we are running out of land in this world to feed all of the increasing amounts of mouths that we have to feed. Tesla (NASDAQ: TSLA) has hit its ambitious production targets and is now rolling out more than 5,000 of its Model 3 electric vehicles every week.
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Brian Gahsman, the portfolio manager of the AlphaCentric Global Innovations Fund , believes that agricultural robots could be a significant development for the entire industry. Learn more {% render_component 'sa-returns-as-of' type='rg'%} Partial Transcript Motley Fool Explorer lead advisor Simon Erickson: Okay, perfect. Tesla (NASDAQ: TSLA) has hit its ambitious production targets and is now rolling out more than 5,000 of its Model 3 electric vehicles every week.
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2018-12-04 00:00:00 UTC
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Manchester United, Big Five Sporting, Caterpillar, Terex and Deere highlighted as Zacks Bull and Bear of the Day
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https://www.nasdaq.com/articles/manchester-united-big-five-sporting-caterpillar-terex-and-deere-highlighted-as-zacks-bull
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For Immediate Release
Chicago, IL - December 4, 2018 - Zacks Equity Research Manchester United MANU as the Bull of the Day, Big Five Sporting Goods BGFV as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Caterpillar CAT , Terex TEX and Deere DE .
Here is a synopsis of all five stocks:
Bull of the Day :
In the United States, sports broadcasting is dominated by the "Big 4" - NFL football, MLB baseball, NBA basketball and NHL hockey. Head to your neighborhood sports bar and you're likely to find fans enjoying hot wings and beer while one or more of those sports is displayed on multiple TVs. If it happens to be Saturday or Sunday afternoon, you might also find a professional golf tournament on a screen or two.
In the rest of the world, it's a somewhat different story. In Europe, Mexico and South America especially, the professional sport most fans are most interested in is Soccer - commonly referred to simply as "football" outside the US.
International soccer enthusiasts are rabid for their favorite teams, anxiously watching every pass, shot and save with a level of enthusiasm that's every bit the equal of American NFL fans. To a greater degree than is typical with the big 4 American sports, individual players often exhibit larger-than-life personalities on and off the field and soccer fans often have not only favorite players to root for, but also foils on other teams that they love to root against. It's a winning formula for retaining fan interest and support.
Among international soccer clubs, there is perhaps no more recognizable name than England's Manchester United which has 659 million global followers and has been in existence for 140 years. "Man U" or "United" - as hardcore fans refer to it - is both the highest-earning and most valuable soccer club in the world with revenues for the 2016-2017 season of €676 million and a total value of over €3 billion.
It's also a publicly traded company since its 2012 listing on the New York Stock Exchange.
Just like the most popular US professional sports franchises, MANU enjoys a diverse stream of revenues that includes not only ticket sales and broadcast rights, but also licensed merchandise, concessions and strategic partnerships with companies outside the sports world.
In fact, MANU - which breaks down revenues for investors into three categories, Commercial, Broadcasting and Matchday - takes in more from the Commercial segment, which includes sponsorships as well as licensed merchandise and apparel, than from the other two segments combined. In the most recent quarter, Commercial accounted for £76B in revenue, Broadcasting was £43B and Matchday was £16B.
Positive earnings estimate revisions earn MANU a Zacks Rank #1 (Strong Buy).
Company guidance for fiscal year 2019 predicts revenues of £615-630B and EBITDA of £175-190M. The report also highlighted new partnerships with Kohler and True Religion apparel as well as the renewal of sponsorships from Canon Medical Systems and Deezer.
Bear of the Day :
Rumors of the demise of traditional retail turn out to have been greatly exaggerated. Despite stiff competition from Amazon and Big Box stores like Wal Mart, some retailers have survived and even thrived by adopting innovative internet marketing and selling campaigns and providing attractive, well-stocked brick-and-mortar locations that appeal to customers who prefer to see and feel merchandise before they buy.
Retail companies that operate clean, well-lit locations have been able to carve out a niche for themselves despite internet competition and are still able to sell goods at reasonable margins because the entire value proposition makes sense to consumers even if the prices of items are a bit higher.
Unfortunately, Big Five Sporting Goods is not one of those success stories.
In an era when customers have a wide range of choices about where to purchase sporting equipment, Dick's Sporting Goods has succeeded by leasing premium real estate in high-profile mall locations that are stocked with a wide variety of brand name equipment and apparel that generally sells at or near full MSRP.
Big Five instead relies on smaller stores in less expensive locations and consequently relies more on sales promotions, discounts and lower priced brands favored by more budget conscious customers. Their most recent quarterly report illustrates the difficulties of utilizing that model.
BGFV reported declines in revenues, net earnings, and same-store sales and cut the quarterly dividend by 66% from $0.15 to $0.05. Net earnings of $0.15/share missed the Zacks Consensus Estimate of $0.19/share and represented a represented a 46% decline from the same period in 2017.
Expenses, measured as a percentage of sales, grew from the year ago period and the outfit only opened one new location during the quarter, bringing the total to 436. In the full year, they expect to open a total of four new stores, but also close two existing locations.
In its guidance for the fourth quarter, Big Five expects same store sales to be in a range from "negative low single digits to positive low single digits" and predicts a net loss of between ($0.25) and ($0.15)/share.
Currently a Zacks rank #5 thanks to recent downward earnings estimate revisions, Big Five has seen share prices decline by over 50% in 2018 even as the retail sector as a whole has outperformed the S&P 500 by a wide margin.
Additional content:
Is It Time to Buy Caterpillar (CAT) Upon the Trade War Cease-Fire?
Caterpillar saw its stock price surge as high as 4% Monday after the U.S. and China agreed over the weekend not to raise tariffs at the start of the new year. Now, with a strong Q4 outlook and a new Bank of America Merrill Lynch upgrade, is it time to buy Caterpillar stock ?
Tariffs & Upgrade
President Donald Trump and Chinese President Xi Jinping agreed Saturday in Argentina to hold off on additional tariffs on each other's goods and products, which were tentatively scheduled to begin January 1. The ceasefire agreement will see the world's two largest economies continue talks for 90 days in order to try to possibly put an end to the on-going trade war.
The announcement helped send stocks up big on Monday, with firms that were expected to be impacted by steeper tariffs able to breathe a sigh of relief, for now. Plus, Bank of America Merrill Lynch upgraded CAT stock on the back of the U.S. and China trade news.
The firm upgraded Caterpillar from "neutral" to "buy" on Monday. The banking power also lifted its 12-month price target from $140 per share to $163 per share. This represented a nearly 21% upside to CAT's closing price on Friday of $135.67 a share.
Price Movement
Moving on, shares of CAT are down roughly 12% on the year based on trade war worries and rising costs. This fall places Caterpillar well below the S&P 500's 3.3% climb in 2018, but ahead of its industry's 15% decline-which includes the likes of Terex, Deere and others. Investors can, however, see that Caterpillar stock has surged over the last three years.
Valuation
Meanwhile, Caterpillar stock is currently trading at 10.7X forward 12-month Zacks Consensus EPS estimates, which marked a discount compared to its industry's 14.7X average and falls well below the S&P's 16.6X. CAT has traded as high as 24.7X over the last year, with a one-year median of 13.6X. More importantly, CAT is trading near its five-year low, which means we can say with some confidence that Caterpillar stock appears rather inexpensive at the moment.
Outlook
The Illinois-based company has for much of the last year worked to offset the impact of tariffs through price increases and cost-cutting measures. Looking ahead, our current Zacks Consensus Estimate is calling for Caterpillar's Q4 revenues to climb by 10.6% to hit $14.26 billion. At the same time, CAT's full-year revenues are projected to surge 19.7% to reach $54.42 billion.
At the bottom end of the income statement, Caterpillar's adjusted Q4 earnings are projected to soar by nearly 38% to hit $2.98 per share. Better still, the construction and mining equipment powerhouse's adjusted full-year earnings are expected to skyrocket by 69.2%.
Bottom Line
Caterpillar is currently a Zacks Rank #3 (Hold) based on its recent mixed earnings estimate revision trends. CAT also sports an "A" grade for Value and a "B" for Growth in our Style Scores system.
Therefore, Caterpillar stock seems like it might be worth considering based on the recent trade news, along with its current relatively "cheap" valuation picture and growth prospects. And let's not forget that CAT is a dividend payer, which always comes in handy.
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Manchester United Ltd. (MANU): Free Stock Analysis Report
Terex Corporation (TEX): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
Big 5 Sporting Goods Corporation (BGFV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite stiff competition from Amazon and Big Box stores like Wal Mart, some retailers have survived and even thrived by adopting innovative internet marketing and selling campaigns and providing attractive, well-stocked brick-and-mortar locations that appeal to customers who prefer to see and feel merchandise before they buy. Retail companies that operate clean, well-lit locations have been able to carve out a niche for themselves despite internet competition and are still able to sell goods at reasonable margins because the entire value proposition makes sense to consumers even if the prices of items are a bit higher. For Immediate Release Chicago, IL - December 4, 2018 - Zacks Equity Research Manchester United MANU as the Bull of the Day, Big Five Sporting Goods BGFV as the Bear of the Day.
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In addition, Zacks Equity Research provides analysis on Caterpillar CAT , Terex TEX and Deere DE . Click to get this free report Manchester United Ltd. (MANU): Free Stock Analysis Report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Big 5 Sporting Goods Corporation (BGFV): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - December 4, 2018 - Zacks Equity Research Manchester United MANU as the Bull of the Day, Big Five Sporting Goods BGFV as the Bear of the Day.
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For Immediate Release Chicago, IL - December 4, 2018 - Zacks Equity Research Manchester United MANU as the Bull of the Day, Big Five Sporting Goods BGFV as the Bear of the Day. In an era when customers have a wide range of choices about where to purchase sporting equipment, Dick's Sporting Goods has succeeded by leasing premium real estate in high-profile mall locations that are stocked with a wide variety of brand name equipment and apparel that generally sells at or near full MSRP. Click to get this free report Manchester United Ltd. (MANU): Free Stock Analysis Report Terex Corporation (TEX): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Big 5 Sporting Goods Corporation (BGFV): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL - December 4, 2018 - Zacks Equity Research Manchester United MANU as the Bull of the Day, Big Five Sporting Goods BGFV as the Bear of the Day. BGFV reported declines in revenues, net earnings, and same-store sales and cut the quarterly dividend by 66% from $0.15 to $0.05. In addition, Zacks Equity Research provides analysis on Caterpillar CAT , Terex TEX and Deere DE .
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721895.0
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2018-12-03 00:00:00 UTC
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Deere's Management Looks Ahead to 2019
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DE
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https://www.nasdaq.com/articles/deeres-management-looks-ahead-2019-2018-12-03
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nan
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nan
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Global agriculture and construction equipment manufacturer Deere & Co. (NYSE: DE) recently reported on its fiscal fourth-quarter and full-year 2018 results. Strong organic growth and the acquisition of road construction equipment giant Wirtgen Group combined to boost Deere's full-year revenue and earnings by 26% and 10%, respectively.
In its current fiscal year (which began on Oct. 29, 2018), Deere projects that revenue will exceed 2018's total of $37.4 billion by 7%. Net income is forecast to improve roughly 50% to $3.6 billion. Below, let's review comments made by management during the company's Nov. 21 earnings conference call , which illuminate both the tailwinds Deere will enjoy and the challenges it will grapple with over the current 12-month period.
Rising yields will be mostly positive for Deere's agricultural business in 2019
In the commentary above, John Lagemann, vice president of Deere's agriculture and turf segment, provided some clarity for investors worried about the effect of the U.S.-China trade dispute, which has led to the imposition of bilateral tariffs. U.S. soybean exports to China have plummeted, as Chinese buyers have turned to Brazil and Argentina for supply after the Chinese government imposed a tariff of 25% on U.S. soybeans in July.
Brent Norwood, Deere's manager of investor communications, provided additional insight into agricultural demand heading into fiscal 2019. Norwood observed that the record yields in corn coupled with higher prices are expected to offset weak soybean prices in the near term. Firming cotton and wheat prices will also contribute to expected crop cash receipts. Deere sees U.S. principal crop cash receipts at $120 billion next year, approximately even with the current year.
So, despite trade uncertainty, the company expects that decent cash receipts for farmers and record yields in the 2018 crop will function as firm equipment demand drivers in the new fiscal year.
Agriculture sales will benefit from aging equipment fleets and improved technology
An aging farm equipment fleet represents a revenue tailwind for Deer's "ag & turf" segment in fiscal 2019. Lagemann makes a slightly subtle additional point above. Growing utilization of precision technology can induce farmers to replace older equipment before it reaches replacement age if they see an economic benefit from buying higher-tech equipment.
During the call, Lagemann cited "guidance, telematics , onboard computing and [our] digital operations center, all of which represent up to 20 years of investment" as components of precision technology which are delivering a return on investment to buyers. These and other systems guide planting, spraying, and harvesting to improve crop yield (and farmers' profits) beyond the capabilities of traditional mechanical machinery.
Lagemann also extolled the company's upgraded support systems, including John Deere Connected Support, which allows the company to remotely monitor customer equipment and send predictive maintenance alerts to a customer's local dealer. This extends the useful life of equipment and helps justify a commercial farmer's investment in a more sophisticated fleet.
A bright construction and forestry outlook
Sales in Deere's second-largest division, construction and forestry, or C&F, jumped 65% in the fourth quarter, to $2.7 billion. Roughly 45 percentage points of this growth can be traced to the company's $5.3 billion acquisition of the world's largest manufacturer of road construction equipment, Wirtgen Group Holding GmBH, on Dec. 1, 2017.
In fiscal 2019, Deere expects C&F sales to improve 15% due to higher equipment demand spurred by an expanding economy and two months of comparative contribution from the Wirtgen acquisition before the acquisition is "lapped."
In addition to favorable conditions in the U.S., Norwood relayed that global transportation investment is expected to increase approximately 5% in 2019. Demand-related growth has already pushed Wirtgen's order book out six months into calendar 2019.
Operating margin to increase over the next few years
Deere's goal of hitting 15% in operating margin within the next few years is ambitious. It represents a margin level that the company has bumped up against historically yet never maintained for long. You can see this in the chart below of the company's operating margin over the last 10 years (on a trailing 12-month basis):
DE Operating Margin (TTM) data by YCharts.
The company believes that its gradual shift into technology-empowered equipment, continued growth in C&F propelled by Wirtgen, cost cutting, and faster sales cycles will help it find that elusive staying power to remain above the 15% level. For the current fiscal year, I believe shareholders can expect a modest single percentage point of growth above fiscal 2018's full-year 12% operating margin.
10 stocks we like better than Deere & Company
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*Stock Advisor returns as of November 14, 2018
Asit Sharma has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So, despite trade uncertainty, the company expects that decent cash receipts for farmers and record yields in the 2018 crop will function as firm equipment demand drivers in the new fiscal year. Roughly 45 percentage points of this growth can be traced to the company's $5.3 billion acquisition of the world's largest manufacturer of road construction equipment, Wirtgen Group Holding GmBH, on Dec. 1, 2017. Global agriculture and construction equipment manufacturer Deere & Co. (NYSE: DE) recently reported on its fiscal fourth-quarter and full-year 2018 results.
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Strong organic growth and the acquisition of road construction equipment giant Wirtgen Group combined to boost Deere's full-year revenue and earnings by 26% and 10%, respectively. So, despite trade uncertainty, the company expects that decent cash receipts for farmers and record yields in the 2018 crop will function as firm equipment demand drivers in the new fiscal year. Agriculture sales will benefit from aging equipment fleets and improved technology An aging farm equipment fleet represents a revenue tailwind for Deer's "ag & turf" segment in fiscal 2019.
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So, despite trade uncertainty, the company expects that decent cash receipts for farmers and record yields in the 2018 crop will function as firm equipment demand drivers in the new fiscal year. Agriculture sales will benefit from aging equipment fleets and improved technology An aging farm equipment fleet represents a revenue tailwind for Deer's "ag & turf" segment in fiscal 2019. In fiscal 2019, Deere expects C&F sales to improve 15% due to higher equipment demand spurred by an expanding economy and two months of comparative contribution from the Wirtgen acquisition before the acquisition is "lapped."
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Agriculture sales will benefit from aging equipment fleets and improved technology An aging farm equipment fleet represents a revenue tailwind for Deer's "ag & turf" segment in fiscal 2019. Roughly 45 percentage points of this growth can be traced to the company's $5.3 billion acquisition of the world's largest manufacturer of road construction equipment, Wirtgen Group Holding GmBH, on Dec. 1, 2017. For the current fiscal year, I believe shareholders can expect a modest single percentage point of growth above fiscal 2018's full-year 12% operating margin.
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e7f2cfd5-189a-4331-bdc8-81710b6f350e
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721896.0
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2018-12-01 00:00:00 UTC
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3 Things the Market Missed From Deere's Earnings
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DE
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https://www.nasdaq.com/articles/3-things-market-missed-deeres-earnings-2018-12-01
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nan
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nan
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As ever, investing is about balancing risk and reward, and there is certainly downside risk to agricultural and construction equipment company Deere (NYSE: DE) in 2019 -- not least from an escalation of trade conflict from China. On the other hand, there's also substantive upside potential, and the key takeaways from the latest earnings report served to highlight them. Let's take a look at them and why Deere is an attractive stock for 2019.
Reasons to be positive on Deere
There are three separate, but related arguments.
The China/U.S. trade dispute is creating substantial difficulties for soybean exporters, but it's being more than offset by strong conditions in other crops, and management's commentary suggested that U.S. farmers can deal with the tariff issues .
Deere's precision agriculture , or precision Ag, solutions are creating a revenue and margin growth opportunity.
Deere's guidance, although positive, looks conservative and leaves room for upside potential.
Tariffs won't harm Deere
Probably the biggest single indicator of Deere's future prospects is U.S. farm income -- when farmers have growing incomes, they are more likely to buy Deere's machinery, but they tend to hold off on purchases when their income is declining.
A stronger outlook for corn will help U.S. farmers offset near-term difficulties with soybean. Image source: Getty Images.
Given the worries created by trade tariff actions -- China is the largest single export market for U.S. soybeans, and export sales have plummeted 94% as a result of tariffs -- it was reassuring to hear Deere Management of Investor Communications Brent Norwood say, "through 2019, principal crop cash receipts are estimated to be about $120 billion, roughly flat with 2018. Record yields and higher prices for corn are forecasted to offset softness in soybean prices ."
Norwood went on to outline the possibility that Brazil, Argentina, and Paraguay would substantially increase soybean exports to China, but U.S. farmers can fill the gap created by the shift and sell into the "former trading partners" of the South American countries.
In a nutshell, the worst fears over tariffs are likely to prove overblown -- and that's good news for Deere.
Precision agriculture will drive sales and margin growth
Farming and agriculture might not be the first industries that spring to mind when thinking about the Internet of Things (IoT) revolution, but Deere's precision Ag solutions are fast becoming a must-have technology for farmers.
CFO Raj Kalathur outlined how Deere's technological solutions (IoT sensors, telematics, onboard computers, and precision hardware solutions) are helping generate value for farmers. As a consequence, "such products should allow us to not only generate higher revenues, higher share but also much higher margins," according to Kalathur.
Moreover, precision Ag solutions are likely to drive "a much higher share of the aftermarket business going forward," according to Kalathur, and Deere's dealers have an opportunity to provide continued support to farmers as they use their equipment -- this should boost Deere's aftermarket revenue.
During the earnings call, Bank of America Merrill Lynch analyst Ross Gilardi suggested that "precision Ag is a $500 million revenue business for Deere today" -- Deere has generated $33.5 billion in equipment sales in 2018. Director of Investor Relations Josh Jepsen didn't confirm or refute Gilardi's figure, but said, "it's a big picture right now," and it's surely a large part of the reason Deere expects price realization to increase by 3% in 2019 -- overall net equipment sales are forecast to increase by 7% next year.
Guidance looks conservative
Management's guidance for net income can be seen in the chart below. As you can see, Deere's net income is forecast to increase to $3.6 billion -- a level last seen in 2013.
The guidance looks good enough, so why does Deere's financial guidance have upside?
The key point is that price realization is forecast to add 3% to net sales, but Deere is only forecasting agriculture and turf equipment sales to increase by 3%. Within that figure, North America agriculture and turf sales are only forecast to increase in the 0% to 5% range. That looks a bit conservative considering that Deere is currently in a replacement market -- in other words, demand is coming from replacing old equipment rather than demand from expansion.
Any upside from an improvement in crop prices, or any positive development on trade negotiations could lead to Deere raising its sales expectations. Meanwhile, the margin expansion implied by increased precision Ag sales suggests that any sales increase will leverage into a bigger increase in profits.
The key takeaway
Putting all of this together, tariff fears are overblown, U.S. farm income is set to be stable, precision Ag will help drive equipment sales growth, and Deere has good underlying sales from replacement demand. All told, investors have more reason to be positive than negative regarding Deere's prospects in 2019.
10 stocks we like better than Deere & Company
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Deere & Company wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of November 14, 2018
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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trade dispute is creating substantial difficulties for soybean exporters, but it's being more than offset by strong conditions in other crops, and management's commentary suggested that U.S. farmers can deal with the tariff issues . Any upside from an improvement in crop prices, or any positive development on trade negotiations could lead to Deere raising its sales expectations. As ever, investing is about balancing risk and reward, and there is certainly downside risk to agricultural and construction equipment company Deere (NYSE: DE) in 2019 -- not least from an escalation of trade conflict from China.
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Deere's precision agriculture , or precision Ag, solutions are creating a revenue and margin growth opportunity. During the earnings call, Bank of America Merrill Lynch analyst Ross Gilardi suggested that "precision Ag is a $500 million revenue business for Deere today" -- Deere has generated $33.5 billion in equipment sales in 2018. Director of Investor Relations Josh Jepsen didn't confirm or refute Gilardi's figure, but said, "it's a big picture right now," and it's surely a large part of the reason Deere expects price realization to increase by 3% in 2019 -- overall net equipment sales are forecast to increase by 7% next year.
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Tariffs won't harm Deere Probably the biggest single indicator of Deere's future prospects is U.S. farm income -- when farmers have growing incomes, they are more likely to buy Deere's machinery, but they tend to hold off on purchases when their income is declining. Moreover, precision Ag solutions are likely to drive "a much higher share of the aftermarket business going forward," according to Kalathur, and Deere's dealers have an opportunity to provide continued support to farmers as they use their equipment -- this should boost Deere's aftermarket revenue. During the earnings call, Bank of America Merrill Lynch analyst Ross Gilardi suggested that "precision Ag is a $500 million revenue business for Deere today" -- Deere has generated $33.5 billion in equipment sales in 2018.
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Director of Investor Relations Josh Jepsen didn't confirm or refute Gilardi's figure, but said, "it's a big picture right now," and it's surely a large part of the reason Deere expects price realization to increase by 3% in 2019 -- overall net equipment sales are forecast to increase by 7% next year. The key takeaway Putting all of this together, tariff fears are overblown, U.S. farm income is set to be stable, precision Ag will help drive equipment sales growth, and Deere has good underlying sales from replacement demand. As ever, investing is about balancing risk and reward, and there is certainly downside risk to agricultural and construction equipment company Deere (NYSE: DE) in 2019 -- not least from an escalation of trade conflict from China.
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2f844c95-743c-48f0-ba2f-3aa1c04a77c5
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721897.0
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2018-11-28 00:00:00 UTC
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Notable Wednesday Option Activity: DG, DE, MSFT
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DE
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https://www.nasdaq.com/articles/notable-wednesday-option-activity-dg-de-msft-2018-11-28
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Dollar General Corp (Symbol: DG), where a total of 8,845 contracts have traded so far, representing approximately 884,500 underlying shares. That amounts to about 40.9% of DG's average daily trading volume over the past month of 2.2 million shares. Particularly high volume was seen for the $108 strike put option expiring November 30, 2018 , with 3,651 contracts trading so far today, representing approximately 365,100 underlying shares of DG. Below is a chart showing DG's trailing twelve month trading history, with the $108 strike highlighted in orange:
Deere & Co. (Symbol: DE) options are showing a volume of 10,482 contracts thus far today. That number of contracts represents approximately 1.0 million underlying shares, working out to a sizeable 40.8% of DE's average daily trading volume over the past month, of 2.6 million shares. Especially high volume was seen for the $165 strike call option expiring December 07, 2018 , with 2,736 contracts trading so far today, representing approximately 273,600 underlying shares of DE. Below is a chart showing DE's trailing twelve month trading history, with the $165 strike highlighted in orange:
And Microsoft Corporation (Symbol: MSFT) options are showing a volume of 147,958 contracts thus far today. That number of contracts represents approximately 14.8 million underlying shares, working out to a sizeable 40.6% of MSFT's average daily trading volume over the past month, of 36.4 million shares. Especially high volume was seen for the $110 strike call option expiring November 30, 2018 , with 20,590 contracts trading so far today, representing approximately 2.1 million underlying shares of MSFT. Below is a chart showing MSFT's trailing twelve month trading history, with the $110 strike highlighted in orange:
For the various different available expirations for DG options , DE options , or MSFT options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $108 strike put option expiring November 30, 2018 , with 3,651 contracts trading so far today, representing approximately 365,100 underlying shares of DG. Especially high volume was seen for the $165 strike call option expiring December 07, 2018 , with 2,736 contracts trading so far today, representing approximately 273,600 underlying shares of DE. Especially high volume was seen for the $110 strike call option expiring November 30, 2018 , with 20,590 contracts trading so far today, representing approximately 2.1 million underlying shares of MSFT.
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Below is a chart showing DG's trailing twelve month trading history, with the $108 strike highlighted in orange: Deere & Co. (Symbol: DE) options are showing a volume of 10,482 contracts thus far today. That number of contracts represents approximately 1.0 million underlying shares, working out to a sizeable 40.8% of DE's average daily trading volume over the past month, of 2.6 million shares. That number of contracts represents approximately 14.8 million underlying shares, working out to a sizeable 40.6% of MSFT's average daily trading volume over the past month, of 36.4 million shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Dollar General Corp (Symbol: DG), where a total of 8,845 contracts have traded so far, representing approximately 884,500 underlying shares. That number of contracts represents approximately 1.0 million underlying shares, working out to a sizeable 40.8% of DE's average daily trading volume over the past month, of 2.6 million shares. Especially high volume was seen for the $110 strike call option expiring November 30, 2018 , with 20,590 contracts trading so far today, representing approximately 2.1 million underlying shares of MSFT.
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Particularly high volume was seen for the $108 strike put option expiring November 30, 2018 , with 3,651 contracts trading so far today, representing approximately 365,100 underlying shares of DG. Especially high volume was seen for the $110 strike call option expiring November 30, 2018 , with 20,590 contracts trading so far today, representing approximately 2.1 million underlying shares of MSFT. Below is a chart showing MSFT's trailing twelve month trading history, with the $110 strike highlighted in orange: For the various different available expirations for DG options , DE options , or MSFT options , visit StockOptionsChannel.com.
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8c8a027b-7cec-4097-814e-ddb6c9ed5e92
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721898.0
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2018-11-23 00:00:00 UTC
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Tesla and Facebook Are Lower as Black Friday Begins in the Red
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DE
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https://www.nasdaq.com/articles/tesla-and-facebook-are-lower-black-friday-begins-red-2018-11-23
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nan
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nan
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Illustration by Michael Haddad
32 days until Christmas: We are now in the stretch run for the year, with 26 trading days left in 2018. So far, November has been a bumpy ride. The Dow Jones Industrial Average is down 2.6% month to date. The S&P 500 is down 2.3% and the Nasdaq Composite has dipped 4.6%. This morning, European stocks are up a little, but U.S. futures pointed to a lower open. Dow, S&P and Nasdaq futures were all down 0.5%. In today's Morning Movers, we...
Value or Growth?High Noon in Trade:President Trump and President Xi are finally meetingbeen saidand writtenDEconference call on Wednesday'Tis the Season:CotyCOTYMohawk IndustriesMHKGeneral ElectricGEL BrandsLBAffiliated Managers GroupBonus Bullet Point:Here are 10 stocks to be thankful for this holiday season
Morning Movers
Credit Suisse (CS) is down 1% to $11.84 after RBC Capital Markets downgraded it to Market Perform.
Facebook (FB) is down 0.8% to $133.80 on reports from TechCrunch that it's still seeing "intermittent issues" with its ad products.
Overstock.com (OSTK) is up 5.7% to $17.95 after The Wall Street Journal reported that it plans to sell its retail business.
Rockwell Collins (COL) is up 8.5% to $140.73 after Chinese authorities approved its acquisition by United Technologies (UTX) up 1% to $126.97.
Tesla (TSLA) is down 1.2% to $334.15 after Reuters reports it plans to l ower prices of cars in China amid tariffs.
Write to Allen Root at Allen.Root@barrons.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In today's Morning Movers, we... Value or Growth?High Noon in Trade:President Trump and President Xi are finally meetingbeen saidand writtenDEconference call on Wednesday'Tis the Season:CotyCOTYMohawk IndustriesMHKGeneral ElectricGEL BrandsLBAffiliated Managers GroupBonus Bullet Point:Here are 10 stocks to be thankful for this holiday season Morning Movers Credit Suisse (CS) is down 1% to $11.84 after RBC Capital Markets downgraded it to Market Perform. So far, November has been a bumpy ride. Rockwell Collins (COL) is up 8.5% to $140.73 after Chinese authorities approved its acquisition by United Technologies (UTX) up 1% to $126.97.
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In today's Morning Movers, we... Value or Growth?High Noon in Trade:President Trump and President Xi are finally meetingbeen saidand writtenDEconference call on Wednesday'Tis the Season:CotyCOTYMohawk IndustriesMHKGeneral ElectricGEL BrandsLBAffiliated Managers GroupBonus Bullet Point:Here are 10 stocks to be thankful for this holiday season Morning Movers Credit Suisse (CS) is down 1% to $11.84 after RBC Capital Markets downgraded it to Market Perform. So far, November has been a bumpy ride. Write to Allen Root at Allen.Root@barrons.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In today's Morning Movers, we... Value or Growth?High Noon in Trade:President Trump and President Xi are finally meetingbeen saidand writtenDEconference call on Wednesday'Tis the Season:CotyCOTYMohawk IndustriesMHKGeneral ElectricGEL BrandsLBAffiliated Managers GroupBonus Bullet Point:Here are 10 stocks to be thankful for this holiday season Morning Movers Credit Suisse (CS) is down 1% to $11.84 after RBC Capital Markets downgraded it to Market Perform. So far, November has been a bumpy ride. Write to Allen Root at Allen.Root@barrons.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So far, November has been a bumpy ride. In today's Morning Movers, we... Value or Growth?High Noon in Trade:President Trump and President Xi are finally meetingbeen saidand writtenDEconference call on Wednesday'Tis the Season:CotyCOTYMohawk IndustriesMHKGeneral ElectricGEL BrandsLBAffiliated Managers GroupBonus Bullet Point:Here are 10 stocks to be thankful for this holiday season Morning Movers Credit Suisse (CS) is down 1% to $11.84 after RBC Capital Markets downgraded it to Market Perform. Illustration by Michael Haddad 32 days until Christmas: We are now in the stretch run for the year, with 26 trading days left in 2018.
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bf7a49ec-9b9c-425c-ba4b-09bf8e9bf2a9
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721899.0
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2018-11-21 00:00:00 UTC
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Deere & Co (DE) Q4 2018 Earnings Conference Call Transcript
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DE
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https://www.nasdaq.com/articles/deere-co-de-q4-2018-earnings-conference-call-transcript-2018-11-21
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nan
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nan
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Deere & Co (NYSE: DE)
Q4 2018 Earnings Conference Call
Nov. 21, 2018 , 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and welcome to Deere & Company's Fourth Quarter Earnings Conference Call. (Operator Instructions)
I will now like to turn the call to Mr. Josh Jepsen, Director of Investor Relations. Thank you. You may begin.
Josh Jepsen -- Director of Investor Relations
Hello. Also on the call today are Raj Kalathur, our Chief Financial Officer; John Lagemann, Ag & Turf, Senior Vice President of Sales and Marketing for the Americas; Ryan Campbell, Vice President and Corporate Comptroller; and Brent Norwood, Manager, Investor Communications.
Today, we'll take a closer look at Deere's fourth quarter earnings, then spend some time talking about our markets and our current outlook for fiscal 2019. After that we'll respond to your questions. Please note that slides are available to complement the call this morning. They can be accessed on our website at www.johndeere.com/earnings.
First, a reminder. This call is being broadcast live on the Internet and recorded for future transmission and use by Deere & Company. Any other use, recording or transmission of any portion of this copyrighted broadcast without the express written consent of Deere is strictly prohibited. Participants in the call, including the Q&A session, agree that their likeness and remarks in all media may be stored and used as part of the earnings call.
This call includes forward-looking comments concerning the Company's plans and projections for the future that are subject to important risks and uncertainties. Additional information concerning factors that could cause actual results to differ materially is contained in the Company's most recent Form 8-K and periodic reports filed with the Securities and Exchange Commission.
This call may include financial measures that are not in conformance with accounting principles generally accepted in the United States of America, GAAP. Additional information concerning these metrics, including reconciliations to comparable GAAP measures, is included in the release and posted on our website at www.johndeere.com/earnings under Quarterly Earnings & Events. Brent?
Brent Norwood -- Manager, Investor Communications
John Deere had another solid quarter with contributions from both our equipment operations and financial services group. This strong performance has enabled significant investment in new products, services and technologies, as well as a return of $1.8 billion to shareholders through both dividends and share buybacks. In agricultural markets, replacement demand continues to drive sales activity for our early order programs, while construction equipment sales benefited from increased construction investment and a healthy order book.
Now, let's take a closer look at our year-end results for 2018, beginning on Slide 3. For the full year, net sales and revenues were up 26% to $37.358 billion, while net sales for equipment operations were up 29% to $33.351 billion. Net income attributable to Deere & Company was $2.368 billion or $7.24 per diluted share. The results for the year included an unfavorable net adjustment to provisional income taxes of $704 million. Excluding this item, adjusted net income was $3.073 billion.
Slide 4 shows the results for the fourth quarter. Net sales and revenues were up 17% to $9.4 billion. Net income attributable to Deere & Company was $785 million or $2.42 per diluted share. The results for the quarter included a favorable net adjustment to provisional income taxes of $37 million. Excluding this item, adjusted net income was $748 million.
On Slide 5, total worldwide equipment operations net sales were up 18% to $8.3 billion. Price realization in the quarter was positive by 2 points. Currency translation was negative by 3 points and the impact of Wirtgen was 11 points.
Turning to a review of our individual businesses, starting with Agriculture & Turf on Slide 6. Net sales were up 3% in the quarter-over-quarter comparison, primarily driven by higher shipment volumes and price realization, partially offset by the negative impact of currency. Operating profit was $567 million, down 5% from the same quarter last year, as the benefit of increased volumes and price realization were balanced by higher production cost, currency headwinds and increased R&D expense. Operating margins for the quarter were 10.1%.
Before we review the industry sales outlook, let's look at some fundamentals affecting the Ag business. Slide 7 outlines that US principal crop cash receipts, an important indicator for equipment demand. Through 2019, principal crop cash receipts are estimated to be about $120 billion, roughly flat with 2018. Record yields and higher prices for corn are forecasted to offset softness in soybean prices . Additionally, improved prices for cotton and wheat continue to be supportive of crop cash receipts as well. It's also important to note that the receipts include about $4 billion, representing the first tranche in the USDA aid distributed to farmers. To-date, just under $1 billion has already been paid out in 2018.
On Slide 8, corn stocks-to-use ratio is expected to decline in response to increasing global demand and drought conditions experienced during the first crop in Argentina, which lowered the country's corn production by roughly 25%. Wheat stocks-to-use ratio is projected to decline in 2018 in response to intensifying drought conditions in Europe, Australia and the Black Sea region. As a result, US farmers are seeing increasing export demand for the year.
Conversely, soybean stocks-to-use ratio is forecast to build, in response to higher than expected yields in the US and the ongoing trade dispute between the US and China. Over the last six months, there has been much uncertainty as to how China would source soybeans and where displaced US exports would go. While trade flow patterns are still in process of rerouting, it is possible that we could see Brazil, Argentina and Paraguay ship the majority of their exports to China, in addition to a drawdown of Chinese stocks and use of protein substitutions. In that scenario, the US soybean exports would likely increase to the former trading partners of South America and result in some building of stocks in 2018. We expect farmer sentiment continue to be fluid as trade flow patterns continue to adjust.
At this point, I would like to welcome to the call John Lagemann, the Ag & Turf Senior Vice President of Sales and Marketing for the Americas. He will provide comments on the current environment for Ag in North and South America, as well as the 2019 industry outlook for the Ag and Turf division. John?
John Lagemann -- Ag & Turf, Senior Vice President of Sales and Marketing for the Americas
So thanks, Brent. Moving on to Slide 9, let's focus on the current backdrop for North American large Ag, including farmer sentiment, replacement demand and the status of our 2019 early order programs. Over the past several months, I traveled extensively, meeting with both dealers and farmers. And I've had a chance to discuss general business conditions and their outlook for next year. In the US, overall, both farmer and dealer sentiment remains cautiously optimistic. While there is uncertainty in the soybean market, there is optimism around improved fundamentals that Brent just referenced, in the corn, wheat and cotton markets.
In addition, we're seeing notable excitement from dealers and customers in our core Midwest markets concerning the 2018 crop, where there are record yields in both corn and soybeans. Dealers believe this crop will positively influence equipment demand for 2019. But despite this optimism, it is also important to acknowledge the ongoing uncertainty the industry faces regarding unresolved global trade issues. While many farmers believe these issues will be resolved before next year's harvest, there's no doubt trade concerns have had an impact on farmer sentiment over the last several months.
Now let's talk specifics on the industry and the reasons for our constructive view for 2019, which reflect the following four aspects. Number one, we are in a replacement market. Number two, replacement demand is being augmented by today's precision Ag technology. Number three, our approach in delivering this technology is uniquely and seamlessly integrated. And finally, the initial response to our 2019 early order programs has been supportive of our view.
Now let's take a closer look at these drivers. First, it is still a replacement market. That's because the fleet age has reached its highest point since 2013, and customers are increasingly signing a need for newer requirement due to hours and the age on their machines. Further, to the second point, we see evidence that replacement demand has been amplified by the latest precision technology with many examples across our entire large Ag portfolio. And through the course of my conversations with customers the last few months, it is clear these advanced technologies are driving operational efficiencies and tangible economic values.
Also, evident in the growth of our advanced technologies is the critical role being provided by Deere's proprietary and foundational precision technologies, such as guidance, telematics, onboard computing and our digital operations center, all of which represent up to 20 years of investment. These foundational elements serve as key enablers for our latest advanced technologies. And the combination creates the most differentiated and integrated solution in the marketplace. Deere's advantage in this area is further enhanced by the unmatched capabilities of our dealer organization delivering these solutions.
Let's start with product support, which is fundamental to our strategy, because it ensures our customers get the most performance and uptime from their equipment. Perhaps the best example is a feature we call John Deere Connected Support, which allows us to remotely help customers monitor their equipment through integrated telematics. We deployed this strategy two years ago and it is now included in the base package for all of our self-propelled large Ag equipment. Through John Deere Connected Support, we deploy expert alerts, which route predictive maintenance alerts through Deere systems to the local dealer. This allows dealers to proactively contact customers before a predicted failure occurs and expedite the repair. This is just one example, but in general our dealers are centralizing their service capabilities, so they can take full advantage of the technology we bring to the equipment in order to prevent downtime and maximize our customers' equipment investments.
Overall, our dealers also play a critical role in the adoption of precision Ag by our customers. Many of our large Ag dealers now employ certified agronomists and are beginning to mainstream precision Ag expertise across their dealerships with the intent of helping customers plan and execute their agronomic decisions. Importantly, our dealers are making significant investments in both product support and precision Ag capabilities. Deere's dealer advantage in this area distinguishes our channel in the industry.
Furthermore, we firmly believe a successful precision Ag strategy requires a substantial investment from both the OEM and the channel, as well as significant collaboration between these two parties, and we are committed to doing just that. I came across an example of why this is so important just last month when visiting with a very large Midwestern farmer, who is in fact in the process of converting from a multi-colored fleet to all green. He cited the economic advantages of utilizing an all green fleet across his entire production system, from planting, spraying, and harvesting, all leveraging the same integrated technology and seamless data platform. And equally as important for this customer was the local dealer's ability to supply and support the advanced technologies of this entire fleet.
This example also highlights how our strong dealer network has been critical in facilitating replacement demand seen in 2018 and continuing into 2019, with the latest results of our early order programs, which I will speak to now.
In September, the final phase of the planter and sprayer early order program concluded with orders up mid-single digits over 2018. In addition to higher volume year-over-year, the program included a healthy price increase and resulted in materially higher take rates for advanced precision features, like ExactApply sprayers and ExactEmerge planters, which were up significantly from last year.
Moving to our combine early order program. Results through phase 2 are mixed, with volume ending up in the US, but down in Canada, largely due to a delayed harvest and some other weather related issues. Importantly, adoption rates for premium features, like Active Yield and Combine Advisor were both higher than last year. Overall, replacement demand continues to drive order activity and we are pleased with the initial response to our early order programs. Furthermore, the 2019 large tractor order book is building and currently running into the second quarter. Customer demand to date supports our expectations of a continued gradual recovery for large Ag equipment in North America, which is still closer to trough volumes than mid-cycle. Key to this gradual recovery is either the continuation of trade flow readjustments, which we've seen already some progress in, or a trade resolution between the US and China.
Turning to Slide 10. I'd like to elaborate on Deere's journey in Brazil and provide insights into the current environment. Deere began its Brazilian operation in 1979 with a 20% acquisition of SLC and the production of combines only. By the 1990s, we foresaw the country's enormous Ag potential and began investing heavily in the region. Launched our financial operations and established the region's preeminent dealer channel. Over the last decade, Deere has tripled its tractor market share and now enjoys the leading brand position. We've also localized the complete soybean production system portfolio, including tractors, planters, sprayers, and combines, while achieving very attractive margins. Further augmenting this complete production system portfolio is our best in class distribution channel and Deere's latest precision Ag offerings, which also lead the industry and further widened our competitive advantage.
After recently traveling to Brazil this month and visiting with both dealers and customers, I can report the environment in Brazil is quite positive with farmer sentiment boosted by recent election results and the outlook for expanding acreage. Despite some modest near-term pressure on freight and input prices, we remain very optimistic on the region's long-term prospects and we'll continue to execute our product, technology and channel strategy.
By region, our 2019 Ag & Turf industry outlooks are summarized on Slide 11. Industry sales in the US are forecast to be flat to up 5% for 2019. As I mentioned already, expectations for the year are largely driven by replacement demand, as customers need to update their age fleets and upgrade to more efficient technologies. Further supporting new equipment demand, used inventories are down over one-third from their peak in 2014, while pricing has remained stable with good lower hour Deere machines selling quickly and bringing strong prices. As mentioned, Midwest dealers are reporting the high yields of this fall's crop should have a positive impact on equipment demand, particularly as customers begin reviewing their tax scenarios.
For our small Ag segment, compact tractors saw a strong order book for 2019, driven by a healthy economy and GDP growth. This is helping to offset softness for our livestock and dairy customers, although the order bank for utility tractors and round balers has been very solid.
Moving on to the EU28. The industry outlook is forecast to be flat in 2019, where strength in the UK and France is offsetting weather related challenges in Northern Germany and Scandinavia. In South America, industry sales of tractors and combines are projected to be flat to up 5% for the year. This is primarily driven by solid industry fundamentals in Brazil, which is benefiting from a positive reaction to the political election, commodity price premiums and expanding acreage opportunities. However, growth in Argentina is likely to remain challenged in the near term as the country battles high inflation and political uncertainty.
Shifting to Asia. Industry sales were expected to be flat to down slightly, as key growth markets begin to cool. Lastly, industry retail sales of turf and utility equipment in the US and Canada are projected to be flat to up 5% in '19, based on the general economic factors mentioned earlier.
Putting all of this together on Slide 12, fiscal year 2019 Deere sales of worldwide Ag & Turf equipment are now forecast to be up approximately 3%, which includes a negative currency impact of about 2 points. Furthermore, we anticipate sales in '19 to mirror a similar quarterly seasonality as we saw in 2018. The Ag & Turf's division operating margin is forecast to be up approximately 12.5%.
I'll now turn it back over to Brent.
Brent Norwood -- Manager, Investor Communications
Yes. Let's focus on Construction & Forestry on Slide 13. Net sales for the quarter of $2.7 billion were up 65% compared with last year, driven by strong demand for Construction & Forestry equipment, as well as by the acquisition of Wirtgen, which contributed 45% of the positive improvement. Fourth quarter operating profit was $295 million, largely benefiting from the Wirtgen acquisition, higher shipment volumes and net price realization, partially offset by higher production costs. C&F operating margins were 10.8% for the quarter, but 10.9% excluding Wirtgen.
Moving to Slide 14. The economic environment for the construction, forestry and road-building industries looks solid and continue to support increase demand for new and used equipment. For 2019, US GDP and total construction investment are forecast to grow, while housing starts and oil activity remain at supportive levels for equipment demand. Importantly, our US customer base remains quite optimistic on next year's prospects, starting backlogs extending through much of the year.
Lastly, global transportation investment this year is forecast to grow about 5%, driving increased demand for road construction equipment, such as milling machines, rollers and asphalt pavers, which are all important product lines for Wirtgen. These positive economic indicators are reflected in a strong order book, which is now extending about six months into 2019.
Moving to the C&F outlook on Slide 15. Deere's Construction & Forestry sales are now forecast to be up about 15% in 2019 as a result of stronger demand for equipment, as well as an additional two months of ownership of Wirtgen. The net sales forecast includes about $3.8 billion attributable to Wirtgen. The forecast for global forestry market is up about 10% as a result of improvement in sales in the US and Canada and strong demand for cut-to-length products in Europe and Russia. C&F's full year operating margin is projected to be about 12%. Excluding Wirtgen, C&F projects operating margins to be about 11.5%. With regards to Wirtgen, integration continues to go as planned and the business is enjoying healthy backlogs and performing to the high end of our expectations. Operating margins are now forecast to be about 14% for 2019.
Let's move now to our Financial Services operations. Slide 16 shows the provision for credit losses as a percentage of the average owned portfolio. The financial forecast for 2019, shown on the slide, contemplates a loss provision of about 17 basis points, 4 basis points higher than 2018. This would put loss provisions for the year below the 10-year average of 23 basis points and the 15-year average of 24 basis points.
Moving to Slide 17. Worldwide Financial Services net income attributable to Deere & Company was $261 million in the fourth quarter. The results for the quarter included $109 million of net tax reform-related charges arising from the remeasurement of deferred tax assets and deemed earnings repatriation. Excluding tax reform-related items, adjusted net income in the fourth quarter was $153 million, up about 19% compared to the same quarter last year. For the full year in 2019 net income is forecast to be about $630 million.
Slide 18 outlines receivables and inventories. For the Company as a whole, receivables and inventories ended the quarter up $3.5 billion. In the C&F division, the majority of the increase is attributable to Wirtgen, as well as the higher order book and production schedule for 2019. For Ag, the increase is due to better inventory positioning with our supply base and continued demand for small Ag products, which require adequate inventory to sales ratios.
Moving to Slide 19. Cost of sales for the fourth quarter was 76% of net sales. And our 2019 guidance is about 75%, down 2 points from 2018. R&D was up about 18% in the fourth and forecast to be up 6% in 2019, or 4% when excluding Wirtgen from the results. The increase in 2019 primarily relates to strategic investments in precision Ag, as well as next generation new product development programs for large Ag product lines. SA&G expense for the equipment operations was up 8% in the quarter and 15% for the full year on a reported basis. The year-over-year increase is mostly attributable to the impact of acquisitions. Our full year 2019 SA&G forecast expense is up about 7% or 4% excluding Wirtgen.
Turing to Slide 20. The equipment operation tax rate was 34% in the fourth quarter, which included an unfavorable adjustment of $72 million arising from tax reform. For 2019, Deere's year full year effective tax rate is projected to be between 25% and 27%.
Slide 21 shows our equipment operations history of strong cash flow. Cash flow from the equipment operations is now forecast to be about $4.8 billion in 2019, up from $3.3 billion in 2018. Keep in mind that 2018 cash flow included about $1.4 billion in voluntary contributions to pension and OPEB.
The Company's financial outlook is on Slide 22. Our full year outlook now calls for net sales to be up about 7%. Guidance includes about 3 points of price realization and 2 points related to an additional two months of Wirtgen ownership. On the negative side, we expect currency to be about a 2 point headwind next year.
With respect to cost inflation, we anticipate the price realization forecast in 2019 will offset both material cost and freight inflation experienced in 2018 as well as any additional increases forecasted in 2019. Finally, our full year 2019 GAAP net income forecast is now about $3.6 billion.
I will now turn the call over to Raj Kalathur for closing comments. Raj?
Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer
Before we respond to your questions, I'd like to share some thoughts on capital allocation, Deere's ongoing strategy and the long-term tailwinds underpinning our business outlook.
First, it's important to note that continued demand for both Ag and construction equipment has resulted in excellent cash flow generation and allowed us to increase the capital returned to shareholders. In 2018, the Company returned almost $1.8 billion through an increase in dividend and the repurchase of approximately $950 million in stock. In 2019, we are forecasting a strong $4.8 billion in cash flow from operations. These measures reflect our optimism on the future prospects for the end markets we serve.
With regard to our dividend, we aim to maintain a payout ratio that targets 25% to 35% of mid-cycle earnings and can be sustained through the cycle. Based on our performance in the previous cycle and the inclusion of Wirtgen, we will consider further dividend increases in fiscal year 2019.
Second, in our recent review of the John Deere strategy, we revised our 2022 financial aspirations to reflect our higher expectations for the business. As a result, we raised our mid-cycle operating margin target from 12% to 15%, and modified our operating asset turn aspiration to keep us focused on managing assets effectively. These goals reflect our continued drive to make further improvements and overcome headwinds, such as currency or inflation. Also, the new goals incorporate Wirtgen's potential contribution and will keep us focused on its successful integration. Furthermore, Deere has a good track record of achieving high levels of performance, so we are confident the Company will quickly drive toward these new aspirations. Importantly, incentive compensation is aligned to these higher goals as you may have already noticed in our last proxy.
Lastly, although global agricultural markets continue to face uncertainty over trade, the underlying fundamentals and tailwinds remain intact. It's important to keep in mind that global demand for grains continue to grow even as trade flows adjust to accommodate changes in government policy and forecasts show demand outpacing supply for the '18/'19 season. We are encouraged by the level of replacement demand driving sales at the present time and believe our business will continue to benefit from a gradual recovery in the North American large Ag market and the rapid adoption of precision technologies. As a result, we look forward to delivering strong results in 2019 and beyond.
Josh Jepsen -- Director of Investor Relations
Now we're ready to begin the Q&A portion of the call. The operator will instruct you on the polling procedure. In consideration of others and our hope to allow more of you to participate in the call, please limit yourself to one question. If you have additional questions, we ask that you rejoin the queue. Sherly?
Questions and Answers:
Operator
(Operator Instructions) Our first question comes from Tim Thein with Citigroup. You may ask your question.
Tim Thein -- Citigroup -- Analyst
Great. Thank you and good morning. And first, thanks to John for the color that was really helpful. Just coming back, Raj on what you just finished with in terms of the updated goals, specifically the 15% at mid-cycle operating margin target. The Company is -- I don't think it has ever hit that just in any year in the past. So maybe just -- obviously the inclusion of Wirtgen adds a different component to the sales and profit mix from what you've had historically. But maybe if you can just give us some kind of -- a little more color in terms of what helps to give you confidence in the Company's ability to hit that mid-cycle margin target, at least in terms of the maybe changes to the cost structure et cetera? So that's my question. Thank you.
Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer
Sure, Tim. One, we talked about technology investments we've been making in the last few years and precision Ag is an example. These types of technologies and their solutions and the products that come out of these have significant value to the customers and such products should allow us to not only generate higher revenues, higher share, but also much higher margins, given the kind of value this will generate for the customer. That's one.
The second would be, John talked about Connected Support. These type of technologies that we are incorporating now will help us develop a much higher share of the aftermarket business going forward. Okay? This -- you have to work with the channel and you heard about the investments the channel is making and we are making to enable that.
Third, you mentioned Wirtgen, I think the synergies of Wirtgen, both on the cost side and the sales side and some of the growth prospects there will also allow us to improve our margins. And four, the example would be just all the journey that we can do internally in terms of improving efficiency and effectiveness of our operations just leveraging digitalization, for example. A small start would be in shared services and accounting, we use robotic process automation. There are so many places we intend to actually use such digitalization technologies to improve the effectiveness and efficiency.
And finally, one example -- the other example would be, we'll continue to work on direct material cost reduction, indirect material cost reduction and so on that will also yield an additional opportunity for us to improve margins. So those are the types of things we are envisioning. There'll be a lot more like that. So thank you.
Josh Jepsen -- Director of Investor Relations
Thanks. Next question.
Operator
Thank you. Our next question comes from Jamie Cook with Credit Suisse. You may ask your question.
Jamie Cook -- Credit Suisse -- Analyst
Hi. Good morning. Couple of questions. One just on -- can you comment on the Ag margins in the quarter? They were I think a little light relative to what you guys had guided and also the margins for the full year for Ag for '19 at 12.5%. I think the implied incrementals are mid-to-high 20s, which is a little lighter than I think we were thinking. So if you could provide color on that. And then my follow-up question is just on the pricing front for 2019. I understand the full -- it's 3%, but can you help us get some better clarity on what -- how we should think about Ag versus construction? Thank you.
Josh Jepsen -- Director of Investor Relations
Yes, Jamie, when we look at the Ag margins and I think it's really a similar story kind of what we saw in 2018, as well as the guide for 2019. FX was a significant headwind in the fourth quarter, we're seeing that carry through into 2019. So when you think about kind of the full year of 2018, about 12.1%, ex FX that's about 12.5%. So we saw some drag there. Similarly as we look at 2019, FX is about a 0.5 point drag on our Ag margins. So that's been a pretty significant impact over where were forecasting a quarter ago. I think as you think about '19, the other components, FX is the biggest piece. We do have the impact of R&D and SA&G. Really, R&D focused on some of the things that John and Raj have mentioned in terms of precision Ag, as well as next generation large Ag products that we think over the long term help us achieve those ambition, goals in terms of margins, as well as growing share. So those are the major puts and takes.
Embedded in that guide, as you noted, is the price realization that we've talked about. So we're 3% next year for the equipment operations in total. Both divisions really participating. So we talk a lot about pricing on large Ag. John alluded to it, we've seen that on our early order programs, in our order books that are available now. So we feel good about that and our ability to offset the material and freight cost inflation we've seen in '18 and '19.
And on the construction side, we put through some discount reductions, so we took additional action there that went into effect in November to get price realization on the construction side of the business. And I think it's important to note there, we also expect that we're going to get price that offsets the material and cost inflation we're seeing on that side. So, I think that's probably the way how we look at '19 overall from a margin and price perspective. Thank you. We'll go ahead and go to the next caller.
Operator
Thank you. Our next question comes from Seth Weber with RBC Capital Markets. You may ask your question.
Seth Weber -- RBC Capital Markets -- Analyst
Hey, good morning. For Raj, I guess maybe just going back to the capital allocation. As you noted, cash from ops is going to be up 50% or so this year. I mean, is the increase in buyback that you did in the fourth quarter is -- do you feel like that that's a decent run rate for us to be thinking about going forward for -- through 2019. Thanks.
Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer
Seth, I think, we use the same cash use priorities that we have used in the past. And first, as we maintain a mid-single A rating throughout the cycle. We have a strong balance sheet right now to support it. And second, as you know, we'll invest in growth, both organic and inorganic. You've seen us invest in very promising technologies like in precision Ag. We've also invested in -- very selectively -- in adding to areas like crop care, the type of companies to either gain market position or importantly new capabilities. So you'll see us continue to do some of those. And then you also notice that we've increased dividend by 15% in May 2018 to $0.69 per quarter. We plan to keep the dividends at 25% to 35% on mid-cycle earnings. And as our mid-cycle earnings go up, we'll continue to consider increases. As mentioned earlier, we'll be considering further increases in fiscal '19.
And finally share repurchases, we'll definitely consider if there's cash left. And you said $4.8 billion, that should leave a lot of cash. But we'll also be very opportunistic about it, with our purchases, and time it appropriately in a cycle. And we tend to look at the long-term shareholders benefit when we repurchase shares. Now, with $4.8 billion, the full cash for next year and the current level of share prices, we think it will be a very good value in terms of share repurchase consideration from a longer-term shareholder perspective. I think I'll limit it to that right now, Seth.
Seth Weber -- RBC Capital Markets -- Analyst
Okay. It's just -- I mean obviously over the last two quarters, the cadence has picked up fairly materially from where it had been. So it seems like a natural progression. It seems like this maybe you're -- kind of how you're thinking about the run rate going forward, that's all I'm asking.
Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer
I think it's a good statement you make.
Josh Jepsen -- Director of Investor Relations
Thanks Seth. Next question please.
Operator
Thank you. Our next question comes from Ann Duignan with JPMorgan. You may ask your question.
Ann Duignan -- JPMorgan -- Analyst
Hi, good morning. I guess my question is for John. I'm just curious, frankly, your outlook for cash receipts by commodity, what are you contemplating in terms of planted acres by major crop? And the same question I kind of ask for (ph) CNH, with the North Dakota, South Dakota guys, you've got 12 million acres of soybeans this year with no export programs. Is it conceivable that they rotate completely out of beans next year and into other crops? I'm just curious what your thoughts are John and what you're hearing out there in the Midwest in terms of planted acres by major crops?
Josh Jepsen -- Director of Investor Relations
This is Josh. I'll start and then John will add on. I mean, I think as we think about the major crops, I mean certainly a lot of eyes on what this forecast, this harvest is going to look like, what happens in South America. I think, by and large, as we think about the crop cash receipts we're seeing -- certainly seeing the benefit of the improvements in corn, cotton, and wheat this year in North America and that probably does drive some shifts in acreage out of soybeans, but probably not all to one commodity, some to corn, some to wheat. I think, importantly, as you go to South America, at least what our expectations are now is you see shift out of corn into cotton. So I think there's going to be a lot of puts and takes as we think about this globally and how farmers make their decisions and think about this from their specific economics as we start planning for next year.
John Lagemann -- Ag & Turf, Senior Vice President of Sales and Marketing for the Americas
Yes. And thanks for the question, this is John. I think it's highly dependent upon where it is. I think in those areas that can grow corn successfully and have grown corn successfully, you'll probably see somewhat of a shift to corn, but I think the point that Josh made about South America is important, because my conversations down there, the folks that plant second crop, which is a significant piece of the Brazilian Ag business, they're leaning heavily toward cotton, because of the current conditions and that's going to, we think, provide a buffer on any increase corn here in the US and we're seeing early estimates, corn may be up 3 million to 4 million acres in the US. So I'll limit my answer to that.
Josh Jepsen -- Director of Investor Relations
Thank you. We'll go ahead and move on to the next question.
Operator
Our next question comes from Andy Casey with Wells Fargo Securities. You may ask your question.
Andrew Casey -- Wells Fargo Securities -- Analyst
Thanks. Good morning. I wanted to go back to Jamie's question a little bit. You've been dealing with elevated production costs in Ag & Turf during 2018. Do those -- first, do those dissipate in 2019 and then the higher R&D and SA&G that you're looking to incur in 2019, should we view that as partially precision Ag market development that really should come back in terms of future payback?
Josh Jepsen -- Director of Investor Relations
Yes, I mean I think you're right. I mean there are couple components of higher production costs in 2018. Certainly, material and freight that we've seen. As we look at '18 versus '19, we saw a bigger impact in '18 than we're foreseeing in '19. And then when you think about R&D and SA&G, you're exactly right. I mean the large portion of the R&D are indeed focused on precision Ag, as well as next generation large Ag products. And then, SA&G, there is a significant component there that is related to our customer and product support technologies and capabilities and really working seamlessly with our dealer to deliver those solutions. so that's a piece. You've also got -- down, smaller than that some things like incentive comp, some marketing type of things like that, but those would be the biggest items.
Andrew Casey -- Wells Fargo Securities -- Analyst
Okay, thanks very much.
Josh Jepsen -- Director of Investor Relations
Thanks. Next question.
Operator
The next question comes from Jerry Revich with Goldman Sachs. You may ask your question.
Jerry Revich -- Goldman Sachs -- Analyst
Hi, good morning and Happy Thanksgiving everyone. I'm wondering can you expand on your comments on used inventories in the prepared remarks. So we're hearing about rising used inventories off of a low level, or combines and for excavator product line specifically, so can you just talk about what you're seeing in the channel and your comfort level on the construction equipment outlook? Strong production growth next year within the context of inventories starting to rise off of a low base, but certainly starting to rise.
Josh Jepsen -- Director of Investor Relations
Yes, thanks Jerry. I think when -- starting maybe on used, on both sides of the business, think large Ag used were down a third from the peak of the market. I think importantly we feel good about inventory levels and we've seen prices stabilize. So I think that's been positive. On the construction side, we've also continued to see used inventory come down. Because of the tightness in terms of supply, we've actually seen a number of our dealers putting used into their rental fleets to leverage those machines they have to be able to drive that. So I don't think on the construction side we've seen any product category be particularly concerning or an issue there. John on the used side, on the --
John Lagemann -- Ag & Turf, Senior Vice President of Sales and Marketing for the Americas
I think you nailed it on the Ag side. We're off a third, as you said. It's really the lowest point it's been over the last four years and I think we're in a comfortable zone if you look at the inventory ratio. So I really have nothing else to add.
Jerry Revich -- Goldman Sachs -- Analyst
And that includes combines John?
John Lagemann -- Ag & Turf, Senior Vice President of Sales and Marketing for the Americas
Correct.
Jerry Revich -- Goldman Sachs -- Analyst
Okay, alright. Thank you.
Josh Jepsen -- Director of Investor Relations
Thanks Jerry. Next question please.
Operator
Thank you. Next question comes from David Raso with Evercore. You may ask your question.
David Raso -- Evercore -- Analyst
Thank you. A quick clarification first, though. The John Deere strategy, the bumping up the operating margins, was there any change to your view of mid-cycle revenues in that analysis ?
Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer
So David, as we think through this, we look at '18 through '22 and these are forecasted numbers for the future and as our business expands, you would expect approximate seven year average to expand as well in terms of sales. So our modeling mid-cycle has not changed in this process. So you would expect '18 to '22 some growth in the mid-cycle.
David Raso -- Evercore -- Analyst
I mean just if you even account for the Wirtgen bump up to the margin, you sort of just bumped up your implied EPS mid-cycle by almost $2. I'm just making sure I understand was that maybe as you lower the revenue assumption to the margin bump is less powerful, but to be clear, you're saying you didn't change your view of mid- cycle revenues?
Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer
We didn't change our process to calculate mid-cycle revenue, the mid-cycle revenues will change based on what we post on a yearly basis.
David Raso -- Evercore -- Analyst
(Multiple speakers) Did they go down, I guess, Raj, because if you held them where they were, adding about 200 to 250 bps of core margin improvement, so again exclude the Wirtgen benefit, because it's a higher margin business, it does appear you bumped up your implied EPS mid-cycle by almost $2. I just want to make sure we understand that is the idea or no, did you lower the revenue assumption while raising the margins, so the benefit is not quite as much?
Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer
Dave, I think, this is kind of -- it might be an endless answer here -- answer to your question. But we are not going to talk about exactly what the change in EPS is on a year-by-year basis, but what -- we are not assuming any lower revenues in this process. Like we said --
David Raso -- Evercore -- Analyst
That's also I need to clarify.
Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer
This is not going to bring things like precision Ag. They're going to bring new products, additional growth. Wirtgen brings additional growth. There are technologies that we talked about, brings more growth on the aftermarket side, like the customer support pieces we talked about. So this looks at additional growth opportunities and thereby, additional margin opportunities.
David Raso -- Evercore -- Analyst
Thanks for that. So real quick, my question is on the guide for Ag & Turf for the year. You're saying organic sales up 5%, but when you back out pricing, it's almost implying volumes are almost not up at all, and given your end market outlook and you obviously sure sounded confident in your ability to outgrow the market, given all the technology benefits you have, just trying to understand why are we assuming volumes globally for your business barely up at all in this guidance? That's my only question. Thank you.
Josh Jepsen -- Director of Investor Relations
Yeah, David, I mean, I think as you look across those -- the guidance in Ag, largely flat to up 5%, and I think as John has pointed out, there is uncertainty there and I think just recognition it's early. And we want to make sure that we're not getting ahead of ourselves there. But I think I wouldn't read too much into that on top of that. And we have the FX headwind that we talked about. That's significant on the top line.
Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer
And thank you David. Not more than one question.
David Raso -- Evercore -- Analyst
Thank you. Bye-bye.
Josh Jepsen -- Director of Investor Relations
Thanks. Next question please.
Operator
Thank you. Your next question comes from Joe O'Dea with Vertical Research Partners. You may ask your question.
Joe O'Dea -- Vertical Research Partners -- Analyst
Hi. Good morning. Just looking for any insight on where we stand on the farm aid payments. You've talked about know how much has been paid so far on the first tranche, but what's your visibility is into any announcement on the second tranche? And so the timing of that, the amount of that and how that might be spread across commodities?
Josh Jepsen -- Director of Investor Relations
Thanks Joe. I mean I think as you've noted, there's been conversations, there's expectations it could come out December, similar amount. I think probably importantly, as we think about that we're seeing, as noted, some of that payment come out quicker. So the expectation we see some of that come through maybe more here in the next month or two on the first tranche. So we'll see the timing of that, but the announcement in December, you could see that in the first couple of months then of calendar '19.
Joe O'Dea -- Vertical Research Partners -- Analyst
Okay. Thanks a lot.
Josh Jepsen -- Director of Investor Relations
Thanks. Next question.
Operator
Thank you. Your next question comes from Courtney Yakavonis with Morgan Stanley. You may ask your question.
Courtney Yakavonis -- Morgan Stanley -- Analyst
Hi, thanks. Just wanted to get some clarification on the margin guidance for A&T and for C&F next year. Do those -- how much headwind are you guys assuming from the Section 232 and 301 tariffs and are you assuming the 25% goes into effect?
Josh Jepsen -- Director of Investor Relations
Yeah, great question Courtney. So I think when you think about steel overall, we're seeing higher-- we saw a bigger impact in 2018 than we do in 2019. A couple of couple of things at play there. As you think about hot rolled coil on the Ag side of the business, our fourth quarter is kind of where we saw the higher level of steel pricing. We've actually -- that's what we forecast as we look into 2019. So we're at a more elevated steel level. As it comes down, as is forecast, that would be beneficial.
On the C&F side, plate steel has actually been higher and we've not really seen that move a whole lot. So that's a -- that's in our forecast, but it appears to look like it'll stay at higher levels throughout the year. So I mean '18, '19 all in, '18 is a little bit higher. We're seeing that impact in '19. I think importantly, we're getting price in both divisions to offset that inflation.
As you think about the 301 tariff, so we've estimated about $100 million to $125 million for the enterprise across the year in 2019 and that's at the 25% level. And what our teams would tell you is they're working really hard on -- with suppliers and negotiations to try to beat that number, but that's what we got embedded in the forecast, it's about $100 million to $125 million. Next question, please.
Operator
Thank you. Your next question comes from Mig Dobre with Baird. You may ask your question.
Mig Dobre -- Robert W. Baird -- Analyst
Yes, thank you. Good morning. Just want to talk about C&F a little bit. You talked about order book extending six months into 2019. Can you frame that? And then on your implied core growth of 12% (ph), can you help us understand how you're thinking about Wirtgen versus your legacy construction business? Thanks.
Josh Jepsen -- Director of Investor Relations
Yeah. So I think, when we think about the order book, yes, we talk about it. We've got six months of orders in hand. That's well beyond what we typically run somewhere a month to less than two on a regular basis. So quite a bit more visibility. That's really just based on orders we're seeing come in, the backlog of work that our contractors have. So I think when we step back and look at the economic indicators affecting that industry they're still supportive. You think about -- I mentioned the backlog. Housing has been -- continue to be supportive. And so I think that's been positive. Rental utilization, rental rates have been strong. So I think that's what is driving and informing that outlook. As we think about legacy C&F versus Wirtgen, I think Wirtgen, as we talked about and I think Brent mentioned about $3.8 billion of sales next year. So solid growth, healthy backlog there. Underlying that is about 5% growth expectation in global transportation -- road transportation spending. I think that's positive as well. So I think all of those factors, kind of economic drivers are what would be informing the forecast there and we feel good about where that's at right now. So thanks. We'll go ahead and move on to the next question.
Operator
Thank you. Our next question comes from Steve Fisher with UBS. You may ask your question.
Steve Fisher -- UBS -- Analyst
Thanks. Good morning. I wonder if you could talk about the 30% increase in CapEx, roughly, that you're planning for 2019? What's in that, how tied is that to some of the things you mentioned on R&D, and how much maybe incremental depreciation is flowing through 2019 net income as a result of that higher CapEx?
Josh Jepsen -- Director of Investor Relations
Yeah. Steve, when we think about CapEx, it's really -- it is, as you noted, a similar story to R&D, in that we're focused on advancing our capabilities in precision Ag, large Ag products, the next generation. You know I think in our view we've got an opportunity to extend our leadership position and continue to move forward there. So that's really what we're doing. And I think those are -- those would be the biggest components of that increased spend.
Steve Fisher -- UBS -- Analyst
Is there a big incremental to -- go ahead.
Josh Jepsen -- Director of Investor Relations
Sorry, go ahead, Steve.
Steve Fisher -- UBS -- Analyst
Yeah, I was just going to ask a clarification about the incremental depreciation flowing through in the 2019 net income as a result of that 30% increase?
Josh Jepsen -- Director of Investor Relations
Yeah. I mean I think we're up -- it's up less than $100 million if you look at Slide 26. It's about $75 million of increased D&A next year.
Steve Fisher -- UBS -- Analyst
Okay perfect. Thanks a lot.
Josh Jepsen -- Director of Investor Relations
All right, thank you. Next question.
Operator
Thank you. Your next question comes from Rob Wertheimer with Melius Research. You may ask your question.
Rob Wertheimer -- Melius Research -- Analyst
Hey, thanks and good morning. My question is just on the volume contribution from precision Ag features and options. How much is that contributing to volume this year and do you have any comments, what's been the penetration rates overall? What the potential contribution to that feature set is, whether it's a 10% increase in your volumes or 5% or 20% or what?
Josh Jepsen -- Director of Investor Relations
Rob, we haven't sized that exactly. What I'd tell you is, it is impactful when we think about things like ExactEmerge and ExactApply. We're seeing those up significantly from a take rate perspective over a year ago, in some cases 50% increase in the take rates there. Similarly, on the combines side where we're seeing Combine Advisor and Active Yield be extremely high penetration rates and adoption. And so, it's difficult to size what does that mean toward our top line, but we think it is part of the impact there and also it helps our ability to get price, because of the value -- the economic value we create for the customers. And I'll let John --
John Lagemann -- Ag & Turf, Senior Vice President of Sales and Marketing for the Americas
I think that's the main thing. It's -- because it's really integrated into the product, I think it's hard to measure the incremental value of it, but it really helps sell the value with product. So I think that's the main perspective.
Josh Jepsen -- Director of Investor Relations
Yes. So I think Rob that doesn't probably answer your question perfectly, but I think at this point we'd say it is impactful and as noted by our investments in R&D and capital, we think it'll continue to be more important as we go forward.
Thank you. We'll go ahead and jump to the next question.
Operator
Thank you. Your next question comes from Chad Dillard with Deutsche Bank. You may ask your question.
Chad Dillard -- Deutsche Bank -- Analyst
Hi, good morning everyone. Just wanted to dig into the inventory increase that you saw exiting the year for '18. Just want to understand the mix between large and small Ag, and then how you're thinking about Deere inventories exiting 2019. And then secondly maybe you can just comment on how you're seeing the dealer channel evolve and how you're expecting that to exit the year?
Josh Jepsen -- Director of Investor Relations
Yes, thanks Chad. When we think about the working capital and where we ended the year, up where we'd expected earlier this year, actually it's really driven by a few things. One is kind of timing and weather, so later harvest has certainly impacted some of the timing of when we would expect things to retail. So I think that's been a significant impact. You've also got small Ag there where we're building inventory. It's important in terms of the customer purchase patterns that we've got inventory to sales and availability throughout the year, so I think that's a piece. And then lastly, we're in a much better position with our supply base now than we were a year ago. So last year we did not have as much parts and component availability and this year we're in a much better position and it allows us to go into '19 producing more effectively and efficiently as we move forward. But I'll ask John to add a comment.
John Lagemann -- Ag & Turf, Senior Vice President of Sales and Marketing for the Americas
Yes, I think I'd add two things Josh. Number one the small tractor and small Ag is a strategic play for us, because of the focus we're putting on that market. And I think on the large Ag piece, it's really timing. And the reason I say that is because when you look at November retail sales, frankly they're up significantly over 2018. So I think the late harvest made it more of a timing issue. So we're very encouraged by the early sales in November as we look at 2019.
Josh Jepsen -- Director of Investor Relations
Yes and I think overall, to your comment of kind of where do we end with field inventory, I think that's where we feel we get 100 horsepower (ph) plus of combines, slightly higher inventory sales where we were a year ago. And again as John pointed out, we think some of that's just timing of when those retails are occurring.
So thank you. We'll go ahead and take one more question.
Operator
Thank you. Our last question comes from Ross Gilardi with Bank of America Merrill Lynch. You may ask your question.
Ross Gilardi -- Bank of America Merrill Lynch -- Analyst
Yes, thanks guys for squeezing me in. So the feedback from our dealer survey last week that Deere is gathering $2,000 to $3,000 of annual subscription revenue from customers, if not more, on a cumulative basis from all of your various precision Ag technologies. Last quarter you talked about 130,000 connected Ag machines. So if you just multiply $3,000 of sub revenue times 130,000 machines, you'd get nearly $400 million in revenue. And then some of these things, you seem to be charging activation fees, you've got other hardware revenue streams. Is it unreasonable to think that precision Ag is a $500 million revenue business for Deere today, if not larger, at substantially higher margins than the rest of the Company? And where are you accounting for that subscription revenue base, is it in your 300 basis points of pricing or is it somewhere else? Thanks.
Josh Jepsen -- Director of Investor Relations
Yes, thanks, Ross. I think it's a big picture right now. We're not at the level where we want to break that out in terms of that business. And one, it's particularly -- it's not easy to break out, because of the integration. But we do think it's really important, I think as we go forward we'll continue to dig into that and provide more color. But at this point, you really -- you do see that and you think about monetization in the base equipment, in premium features and then in those subscriptions. So we think it's a significant opportunity to create value for customers and we think as we do that we're going to be able to participate in that value.
Ross Gilardi -- Bank of America Merrill Lynch -- Analyst
Where's the sub revenue (multiple speakers) Is it buried inside of just your volumes, or is it in the pricing, or is it on top of the pricing, the 300 basis points of pricing that you're forecasting this year?
Josh Jepsen -- Director of Investor Relations
Yes, it's really a combination. There's components of the hardware that would be in base and there's other things that would come through premium features. So it's a little bit of a mix, it's not as clean as just one simple line item.
Ross Gilardi -- Bank of America Merrill Lynch -- Analyst
Okay, thanks.
Josh Jepsen -- Director of Investor Relations
All right. Thanks, Ross. All right. Well thanks everyone, we appreciate your participation. I hope everyone has happy Thanksgiving and we'll be available today for callbacks. Take care.
Operator
Thank you. And this does conclude today's conference. We thank you for your participation. At this time you may disconnect your lines.
Duration: 62 minutes
Call participants:
Josh Jepsen -- Director of Investor Relations
Brent Norwood -- Manager, Investor Communications
John Lagemann -- Ag & Turf, Senior Vice President of Sales and Marketing for the Americas
Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer
Tim Thein -- Citigroup -- Analyst
Jamie Cook -- Credit Suisse -- Analyst
Seth Weber -- RBC Capital Markets -- Analyst
Ann Duignan -- JPMorgan -- Analyst
Andrew Casey -- Wells Fargo Securities -- Analyst
Jerry Revich -- Goldman Sachs -- Analyst
David Raso -- Evercore -- Analyst
Joe O'Dea -- Vertical Research Partners -- Analyst
Courtney Yakavonis -- Morgan Stanley -- Analyst
Mig Dobre -- Robert W. Baird -- Analyst
Steve Fisher -- UBS -- Analyst
Rob Wertheimer -- Melius Research -- Analyst
Chad Dillard -- Deutsche Bank -- Analyst
Ross Gilardi -- Bank of America Merrill Lynch -- Analyst
More DE analysis
Transcript powered by AlphaStreet
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see ourTerms and Conditionsfor additional details, including our Obligatory Capitalized Disclaimers of Liability.
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Net sales for the quarter of $2.7 billion were up 65% compared with last year, driven by strong demand for Construction & Forestry equipment, as well as by the acquisition of Wirtgen, which contributed 45% of the positive improvement. Lastly, global transportation investment this year is forecast to grow about 5%, driving increased demand for road construction equipment, such as milling machines, rollers and asphalt pavers, which are all important product lines for Wirtgen. We are encouraged by the level of replacement demand driving sales at the present time and believe our business will continue to benefit from a gradual recovery in the North American large Ag market and the rapid adoption of precision technologies.
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In addition to higher volume year-over-year, the program included a healthy price increase and resulted in materially higher take rates for advanced precision features, like ExactApply sprayers and ExactEmerge planters, which were up significantly from last year. Duration: 62 minutes Call participants: Josh Jepsen -- Director of Investor Relations Brent Norwood -- Manager, Investor Communications John Lagemann -- Ag & Turf, Senior Vice President of Sales and Marketing for the Americas Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer Tim Thein -- Citigroup -- Analyst Jamie Cook -- Credit Suisse -- Analyst Seth Weber -- RBC Capital Markets -- Analyst Ann Duignan -- JPMorgan -- Analyst Andrew Casey -- Wells Fargo Securities -- Analyst Jerry Revich -- Goldman Sachs -- Analyst David Raso -- Evercore -- Analyst Joe O'Dea -- Vertical Research Partners -- Analyst Courtney Yakavonis -- Morgan Stanley -- Analyst Mig Dobre -- Robert W. Baird -- Analyst Steve Fisher -- UBS -- Analyst Rob Wertheimer -- Melius Research -- Analyst Chad Dillard -- Deutsche Bank -- Analyst Ross Gilardi -- Bank of America Merrill Lynch -- Analyst More DE analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. Deere & Co (NYSE: DE) Q4 2018 Earnings Conference Call Nov. 21, 2018 , 10:00 a.m.
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Also on the call today are Raj Kalathur, our Chief Financial Officer; John Lagemann, Ag & Turf, Senior Vice President of Sales and Marketing for the Americas; Ryan Campbell, Vice President and Corporate Comptroller; and Brent Norwood, Manager, Investor Communications. Putting all of this together on Slide 12, fiscal year 2019 Deere sales of worldwide Ag & Turf equipment are now forecast to be up approximately 3%, which includes a negative currency impact of about 2 points. Duration: 62 minutes Call participants: Josh Jepsen -- Director of Investor Relations Brent Norwood -- Manager, Investor Communications John Lagemann -- Ag & Turf, Senior Vice President of Sales and Marketing for the Americas Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer Tim Thein -- Citigroup -- Analyst Jamie Cook -- Credit Suisse -- Analyst Seth Weber -- RBC Capital Markets -- Analyst Ann Duignan -- JPMorgan -- Analyst Andrew Casey -- Wells Fargo Securities -- Analyst Jerry Revich -- Goldman Sachs -- Analyst David Raso -- Evercore -- Analyst Joe O'Dea -- Vertical Research Partners -- Analyst Courtney Yakavonis -- Morgan Stanley -- Analyst Mig Dobre -- Robert W. Baird -- Analyst Steve Fisher -- UBS -- Analyst Rob Wertheimer -- Melius Research -- Analyst Chad Dillard -- Deutsche Bank -- Analyst Ross Gilardi -- Bank of America Merrill Lynch -- Analyst More DE analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool.
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ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to Deere & Company's Fourth Quarter Earnings Conference Call. Duration: 62 minutes Call participants: Josh Jepsen -- Director of Investor Relations Brent Norwood -- Manager, Investor Communications John Lagemann -- Ag & Turf, Senior Vice President of Sales and Marketing for the Americas Rajesh Kalathur -- Senior Vice President, Chief Financial Officer and Chief Information Officer Tim Thein -- Citigroup -- Analyst Jamie Cook -- Credit Suisse -- Analyst Seth Weber -- RBC Capital Markets -- Analyst Ann Duignan -- JPMorgan -- Analyst Andrew Casey -- Wells Fargo Securities -- Analyst Jerry Revich -- Goldman Sachs -- Analyst David Raso -- Evercore -- Analyst Joe O'Dea -- Vertical Research Partners -- Analyst Courtney Yakavonis -- Morgan Stanley -- Analyst Mig Dobre -- Robert W. Baird -- Analyst Steve Fisher -- UBS -- Analyst Rob Wertheimer -- Melius Research -- Analyst Chad Dillard -- Deutsche Bank -- Analyst Ross Gilardi -- Bank of America Merrill Lynch -- Analyst More DE analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. Deere & Co (NYSE: DE) Q4 2018 Earnings Conference Call Nov. 21, 2018 , 10:00 a.m.
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