- Deere revised its full-year net income forecast to a range of $4.75 billion to $5.25 billion, from a previous range of $4.75 billion to $5.50 billion. Analysts estimated $5.08 billion.
- For the third quarter, Earnings Per Share (EPS) dropped to $4.75 from $6.29 year-over-year.
- The company reported a net income of $1.29 billion, a 26% decrease compared to the previous year, which was slightly above an estimated $1.28 billion.
- Production and precision agriculture net sales fell 16% year-over-year to $4.27 billion, missing the estimate of $4.42 billion.
- The operating profit for production and precision agriculture was $580 million, which represents a 50% decline from the previous year.
- Production and precision agriculture’s operating margin was 13.6%, lower than last year’s 22.8% and below the estimated 15.9%.
- Small agriculture and turf net sales slightly decreased by 0.9% year-over-year to $3.03 billion, surpassing the estimate of $2.76 billion.
- Operating profit for small agriculture and turf declined by 2.2% year-over-year to $485 million.
- The operating margin for small agriculture and turf was 16%, close to last year’s 16.2% and above the estimated 12.7%.
- Construction and forestry net sales dropped by 5.4% year-over-year to $3.06 billion, below the estimated $3.16 billion.
- Construction and forestry’s operating profit reached $237 million, down 47% from the previous year.
- The operating margin for construction and forestry was 7.7%, significantly less than last year’s 13.8% and estimates of 11.2%.
- Financial services net income increased 34% year-over-year to $205 million, exceeding the estimate of $160.8 million.
- Other revenue was $243 million, a 12% decrease from the previous year, and lower than the projected $254.2 million.
- Market recommendations for Deere include 11 buys, 12 holds, and 2 sells.
Deere & Co on Smartkarma
Analyst coverage of Deere & Co on Smartkarma reveals a positive outlook from Baptista Research analysts. In their research reports, they highlight Deere’s transformation into a dominant force in agricultural technology. The company’s focus on artificial intelligence and farming is seen as a strategic move towards becoming a full-scale agri-tech platform. Recent developments such as strong financial performance and advancements in autonomy showcase Deere’s commitment to innovation in modern agriculture.
Baptista Research‘s analysis delves into the potential of Deere & Company in the evolving landscape of precision agriculture. Despite challenges reflected in mixed financial results, the analysts express optimism about the company’s future. With a keen eye on factors influencing Deere’s stock price and utilizing valuation methods like Discounted Cash Flow, analysts foresee a promising trajectory for Deere as it continues to leverage AI and technology to revolutionize farming practices.
A look at Deere & Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
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 leading manufacturer of agricultural, construction, and forestry equipment, is positioned for a promising long-term outlook based on its Smartkarma Smart Scores. With a solid Momentum score of 4, indicating strong market performance, Deere is showing positive growth potential. The company also scores well in Resilience and Growth, with scores of 3 on both factors. This suggests that Deere is well-equipped to withstand challenges and continue to expand in the future.
Although Deere scores lower in Value and Dividend, with scores of 2 on both factors, its overall outlook remains optimistic. The company’s global reach, diversified product offerings, and focus on financing services contribute to its resilience and growth prospects. Investors looking for a company with strong momentum and growth potential may find Deere & Company to be a promising long-term investment option.
Summary:
Deere & Company manufactures a wide range of agricultural, construction, and forestry equipment while also providing financing services for its products. With a global presence, the company offers replacement parts and extends its services worldwide.
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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