Agricultural and construction machinery company Deere (NYSE:DE) will be reporting results tomorrow morning. Here’s what investors should know.

Deere beat analysts’ revenue expectations by 14.3% last quarter, reporting revenues of $15.24 billion, down 12.4% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates.

Is Deere a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Deere’s revenue to decline 16.8% year on year to $10.79 billion, a reversal from the 12% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.79 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Deere has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 14.1% on average.

With Deere being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for heavy machinery stocks. However, there has been positive investor sentiment in the segment, with share prices up 4.6% on average over the last month. Deere is down 1.4% during the same time and is heading into earnings with an average analyst price target of $418.09 (compared to the current share price of $400.99).

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.