"Management did an excellent job preparing the company from 2010 through 2013 for an eventual downturn by optimizing manufacturing facilities, hiring temporary workers for cyclical-peak-production capacity, improving purchasing, and a host of efficiency measures," said Tiss. "That preparation has come in handy by allowing the company to stay profitable during a significant downturn."
Meantime, analysts are forecasting Deere's earnings per share in the July quarter will decline by 38 percent and revenues will fall 11 percent, according to Thomson Reuters.
"If they were to say anything positive about North American ag or South American ag, I think that would be received very, very positively," said Morningstar's Webb.
Despite a poor corn crop, Brazil's ag market has been showing some promising signs and is one of the bright spots in the economy. Significant investment from the government is helping the farm sector grow and contributing to customer order activity for ag machinery such as tractors and combines.