Deere & Co DE reported better-than-expected third-quarter results and reaffirmed its net income 2024 outlook on Thursday.The company's net sales and revenue declined 17% year-over-year to $13.152 billion, beating the consensus of $10.944 billion. Deere clocked an EPS of $6.29, down from $10.20 YoY, beating the consensus of $5.85.During the quarter, the company initiated involuntary employee-separation programs across several regions, aiming to streamline operations. The programs incurred $124 million in pre ...

Lokibaho Introduction I have been bullish on Deere & Company (NYSE:DE) since I started buying it shortly after the pandemic. In fact, it was one of the first stocks in my dividend growth portfolio. My original thesis has been unchanged since then, which is based on long-term tailwinds from population growth, a decline in global arable land, rising energy prices (inflationary for crop prices and biofuel demand), and the need for farmers to invest in next-gen technologies to improve yields and reduce cos ...

Financial Data and Key Metrics Changes - Net sales and revenues decreased by 17% to $13.152 billion, while net sales for equipment operations fell by 20% to $11.387 billion [9] - Net income attributable to Deere & Company was $1.734 billion, equating to $6.29 per diluted share [9] - Equipment operations margin stood at 18.5% [8] Business Segment Data and Key Metrics Changes - **Production and Precision Ag**: Net sales were $5.099 billion, down 25% year-over-year, with an operating profit of $1.162 billion and a 22.8% operating margin [10] - **Small Ag & Turf**: Net sales decreased by 18% to $3.053 billion, with an operating profit of $496 million and a 16.2% operating margin [11] - **Construction and Forestry**: Net sales fell by 13% to $3.235 billion, with an operating profit of $448 million and a 13.8% operating margin [15] Market Data and Key Metrics Changes - U.S. and Canada large Ag equipment industry sales are expected to decline approximately 15% [12] - In Europe, industry sales are forecasted to decrease by about 15% due to yield headwinds [13] - South America anticipates a decline in tractor and combine sales between 15% and 20% [13] - Asia's industry sales are projected to be down moderately [14] Company Strategy and Development Direction - The company is focusing on proactive inventory and cost management to navigate challenging market conditions [8] - Adjustments in production schedules are being made to align inventory levels with market demand [20] - The company aims to leverage precision solutions and technology to enhance customer value and operational efficiency [23] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are facing headwinds from softer commodity prices and elevated interest rates, impacting equipment demand [20] - There is optimism regarding future opportunities, particularly in precision agriculture and sustainable operations [23] - The company is committed to maintaining competitiveness through disciplined cost control and strategic partnerships [20][21] Other Important Information - The Worldwide Financial Services net income was $153 million, impacted by higher provisions for credit losses [17] - The company announced a strategic investment in Banco Bradesco to become 50% owners of its Brazilian financing subsidiary [18] - The company expects net income for fiscal year 2024 to be approximately $7 billion [19] Q&A Session Summary Question: Pricing assumptions for 2024 in precision and production Ag - Management explained that the increase in price assumptions was due to stabilization in the market and reduced need for incentives [55][56] Question: Underproduction strategy in the Construction segment - Management confirmed a mid-single-digit underproduction strategy to align with demand and manage inventory levels [59][60] Question: Pricing dynamics in the construction segment - Management noted increased price competition and a reduction in the full-year pricing guide to 0.5 points for 2024 [63][65] Question: Fourth quarter earnings guidance and seasonality - Management clarified that the fourth quarter's performance would not be indicative of the following quarters due to significant underproduction [71][74] Question: Inventory to sales ratio and demand - Management provided insights on maintaining inventory levels and the strategy to achieve a target inventory to sales ratio [78]

Nicholas SmithSometimes, it is enough to release a "not too bad" report to have investors cheer. This is the case with Deere's Q3 earnings. Deere (NYSE:DE) was trading near its 52-week lows as the market was pricing in the bad news coming from its peers, mainly AGCO (AGCO) and CNH Industrial (CNH). After all, as I showed in detail in one of my past analyses on Deere, the business is cyclical, and it is strictly related to farmer net income and corn prices. Since corn is quickly going down, so is farmer ...

Deere & Company (DE) reported third-quarter fiscal 2024 (ended Jul 28) earnings of $6.29 per share, which beat the Zacks Consensus Estimate of $5.80. The bottom line, however, plunged 38% from the prior year quarter.This was mainly due to lower shipment volumes across all segments, reflecting weak demand. This was somewhat negated by the company’s pricing strategies and cost-saving measures.Net sales of equipment operations (comprising Agriculture, and Turf, Construction and Forestry) were $11.39 billion, d ...

For the quarter ended July 2024, Deere (DE) reported revenue of $11.39 billion, down 20.3% over the same period last year. EPS came in at $6.29, compared to $10.20 in the year-ago quarter.The reported revenue represents a surprise of +4.73% over the Zacks Consensus Estimate of $10.87 billion. With the consensus EPS estimate being $5.80, the EPS surprise was +8.45%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectati ...

Key TakeawaysDeere reported third-quarter earnings Thursday that fell year-over-year, but still managed to beat analyst estimates.CEO John May said the company faced "challenging conditions" and "significant headwinds" in the agriculture and construction industries.Deere said it expects sales to come in 10% to 25% lower for the full fiscal year. Deere & Company (DE) reported third-quarter earnings that beat expectations, despite a year-over-year decline as the company faced "significant headwinds" in the ag ...

Deere stock has become too cheap to ignore.The industrial sector is up 14% over the last year -- slightly lagging the performance of the S&P 500, but still a solid gain. Despite being an industry leader in heavy equipment for agriculture, construction, and forestry, Deere (DE 0.20%) stock is down 20% over the last year and hovering around a three-year low.Here's why the dividend stock has sold off far enough and why it is worth buying and holding for the next five years. A textbook cyclical businessWhen you ...

Key TakeawaysDeere reported third-quarter earnings Thursday that fell year-over-year, but still managed to beat analyst estimates.CEO John May said the company faced "challenging conditions" and "significant headwinds" in the agriculture and construction industries.Deere said it expects sales to come in 10% to 25% lower for the full fiscal year. Deere & Company (DE) reported third-quarter earnings that beat expectations, despite a year-over-year decline as the company faced "significant headwinds" in the ag ...

Deere (DE) came out with quarterly earnings of $6.29 per share, beating the Zacks Consensus Estimate of $5.80 per share. This compares to earnings of $10.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.45%. A quarter ago, it was expected that this agricultural equipment manufacturer would post earnings of $7.86 per share when it actually produced earnings of $8.53, delivering a surprise of 8.52%.Over the last four quarter ...