- Deere reported a net income of $869 million for the first quarter, surpassing estimates of $848.7 million but down 50% from the previous year.
- Earnings per share (EPS) came in at $3.19, compared to $6.23 the previous year.
- Production & precision agriculture net sales were $3.07 billion, a decrease of 37% year-over-year, missing the estimate of $3.48 billion.
- Operating profit for production & precision agriculture was $338 million, down 68% from the previous year.
- The operating margin for production & precision agriculture was 11%, compared to 21.6% the previous year, and lower than the estimated 13.8%.
- Small agriculture & turf net sales were $1.75 billion, a decline of 28% year-over-year, falling short of the $1.97 billion estimate.
- Operating profit for small agriculture & turf was $124 million, a 62% decrease year-over-year.
- The operating margin for small agriculture & turf was 7.1%, dropping from 13.4% the previous year, and missing the estimated 10.5%.
- Construction & forestry net sales reached $1.99 billion, down 38% year-over-year, below the $2.27 billion estimate.
- Operating profit for construction & forestry was $65 million, an 89% decline from the previous year.
- The operating margin for construction & forestry was 3.3%, a sharp drop from 17.6% the previous year, and less than the estimated 8.4%.
- Financial services segment showed positive results, with net income of $230 million, up 11% year-over-year, exceeding the $184.5 million estimate.
- Other revenue totaled $229 million, a decline of 29% year-over-year, not reaching the estimate of $285.3 million.
- In terms of investment ratings, Deere received 12 buy recommendations, 11 hold recommendations, and 2 sell recommendations.
Deere & Co on Smartkarma
On Smartkarma, top independent analysts like Baptista Research and Value Investors Club have been covering Deere & Company, providing valuable insights for investors. Baptista Research highlighted Deere’s performance in fiscal 2024, noting a decline in net sales and revenues along with challenging market conditions. Despite this, they see Precision Agriculture Expansion as a key growth lever. Value Investors Club also sees potential in Deere, emphasizing the company’s strong business fundamentals in the agriculture and construction equipment industry, supported by innovation and a global presence.
Both research reports acknowledge Deere’s strategic positioning and long-term growth potential, with Baptista Research outlining the company’s challenges in managing varied market conditions and reduced demand. The analysts’ bullish sentiment reflects optimism for Deere & Company’s ability to navigate through market challenges and capitalize on opportunities for growth in the industry.
A look at Deere & Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Deere & Company, a global leader in manufacturing agricultural, construction, and forestry equipment, is positioned for long-term growth according to the Smartkarma Smart Scores. With high scores in Growth and Momentum, the company appears poised to capitalize on future opportunities in these sectors. Additionally, a moderate score in Dividend suggests a stable return for investors, highlighting the company’s commitment to rewarding shareholders. However, lower scores in Value and Resilience indicate potential challenges in terms of undervaluation and resilience to market fluctuations, which investors should take into consideration.
In summary, Deere & Company’s Smartkarma Smart Scores reflect a positive long-term outlook, especially in terms of growth potential and market momentum. As a global provider of equipment and services in various industries, the company’s strategic positioning and diversified product offerings indicate a promising future for investors seeking opportunities in the agricultural and construction sectors.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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