DEERE Reports Fourth Quarter FY2023 Earnings Results on November 22, 2023

🌥️Earnings Overview

On November 22 2023, DEERE ($NYSE:DE) reported its fourth quarter fiscal year 2023 financial results, ending on October 31 2023. Total revenue for the quarter totaled USD 15.2 billion, representing a decrease of 0.8% compared to the same quarter last year. Meanwhile, net income was USD 2.4 billion, a 5.3% increase year over year.

Market Price

DEERE (NYSE: DE) reported their fourth quarter FY2023 earnings results on Wednesday, November 22, 2023. Following the announcement, DEERE stock opened at $361.0 and closed at $370.8, representing a 3.1% decrease from its previous closing price of 382.6. This decline was largely attributed to the company’s weaker than expected revenue and profits in the quarter. Despite this, DEERE managed to beat the market expectations for their earnings results, which was a positive sign for investors.

Overall, DEERE reported an increase in total revenue by 5% compared to the same period in the previous year. Going forward, DEERE looks to capitalize on their impressive performance in the fourth quarter to ensure steady growth in the following quarters. With a robust financial position and experienced management team, the company expects to remain profitable and competitive in the agricultural machinery sector. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Deere. DEERE_Reports_Fourth_Quarter_FY2023_Earnings_Results_on_November_22_2023″>More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Deere. DEERE_Reports_Fourth_Quarter_FY2023_Earnings_Results_on_November_22_2023″>More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Deere. DEERE_Reports_Fourth_Quarter_FY2023_Earnings_Results_on_November_22_2023″>More…

Key Ratios Snapshot

Some of the financial key ratios for Deere are shown below. DEERE_Reports_Fourth_Quarter_FY2023_Earnings_Results_on_November_22_2023″>More…

Analysis

As GoodWhale analysts, we have conducted an in-depth analysis of DEERE‘s financials. According to our Star Chart, DEERE has achieved a high health score of 8/10 due to its strong cashflows and debt repayment capabilities. We have classified DEERE as a ‘gorilla’ type of company, a classification that indicates stable and high revenue or earning growth due to their competitive advantage. Given their performance in the areas of dividend, growth, profitability, and assets, we believe that DEERE may be of interest to various types of investors. Those looking for steady returns may be interested in their dividend, while those seeking growth may be drawn to their stable earnings growth. Investors looking for a good return on their investments may be attracted to their high profitability score. Additionally, their medium asset score may indicate that they have the potential to make long-term investments, making them an attractive option for those seeking long-term returns. Overall, given their excellent overall scores and strong competitive advantage, DEERE may be well-suited for many types of investors. More…

Peers

Deere & Co. is an American corporation that manufactures agricultural, construction, and forestry machinery, diesel engines, drivetrains (axles, transmissions, gearboxes) used in heavy equipment, and lawn care equipment. In 2018, it was listed as 87th in the Fortune 500 America’s ranking and was ranked 329th in the global ranking. The company also provides financial services and other related activities. Deere & Co.’s main competitors are CNH Industrial NV, Caterpillar Inc, Hitachi Construction Machinery Co Ltd.

– CNH Industrial NV ($NYSE:CNHI)

CNHI is a world leader in the design and manufacture of agricultural and construction equipment. The company has a market cap of 17.03B as of 2022 and a ROE of 29.84%. CNHI produces some of the world’s most recognizable brands, including Case IH, New Holland, and Steyr. The company’s products are used in a variety of applications, including farming, construction, and landscaping.

– Caterpillar Inc ($NYSE:CAT)

Caterpillar Inc. is a publicly traded company with a market capitalization of 96.9 billion as of 2022. The company designs, manufactures, markets and sells machinery and engines used in construction, mining, and forestry applications worldwide. Caterpillar’s return on equity was 33.83% as of 2022.

Caterpillar is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company also serves the defense, rail, and power generation industries. Caterpillar employs more than 130,000 people worldwide and operates in more than 200 countries.

– Hitachi Construction Machinery Co Ltd ($TSE:6305)

Hitachi Construction Machinery Co Ltd has a market cap of 574.79B as of 2022, a Return on Equity of 13.19%. The company is engaged in the manufacturing and selling of construction and mining equipment, as well as other related products and services. The company has a strong presence in Japan and Asia, and is expanding its operations globally.

Summary

Investors reacted negatively to Deere & Co’s fourth quarter earnings results for FY2023, reported on November 22. Total revenue for the quarter was USD 15.2 billion, a decrease of 0.8% year over year, while net income was USD 2.4 billion, an increase of 5.3% year over year. This resulted in the stock price dropping on the same day.

Analysts suggest that the weak revenue growth and uncertain economic outlook are causing investor concern. Going forward, investors will be watching closely to see if the company can maintain its earnings growth in spite of these economic headwinds.