Wednesday is a big day for Deere

11/19/2012 10:23 pm EST


Jim Jubak

Founder and Editor,

If you’ve been looking for an opportunity to pick up shares of Deere (DE) on a dip, keep your eyes on Wednesday, November 21. The company is scheduled to report earnings for last quarter of its 2012 fiscal year (which ended on October 31) on that date.

The Wall Street consensus calls for earnings of $1.88 a share and revenue of $8.93 billion.

But there’s a decent possibility of negative news in the conference call. Last August, Deere warned that it was having problems manufacturing a new, more complex combine. Delays in delivering machines had reached 14 days, the company said, and some customers had begun to cancel orders. At the time Deere said that it believed it could make up for lost production in the fourth quarter that ended in October.

Are the problems fixed? Did Deere make up for lost production? Did the company’s inventory continue to swell in the fourth quarter?

Investors will want to know.

At a November 19 close of $86.35, Deere is trading near its November 1 high of $86.87. That’s a long way from the stock’s $70.59 low on June 4.

Full disclosure: I don’t own shares of any of the companies mentioned in this post in my personal portfolio. The mutual fund I manage, Jubak Global Equity Fund , may or may not now own positions in any stock mentioned in this post. The fund did not own shares of Deere as of the end of September. For a full list of the stocks in the fund as of the end of September see the fund’s portfolio at

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