DEERE Reports Q2 FY2023 Earnings Results, Ending April 30 2023
June 22, 2023
🌥️Earnings Overview
On May 19, 2023, DEERE ($NYSE:DE) reported their financial results for the second quarter of FY2023, ending April 30, 2023. Total revenue for the quarter increased by 30.1%, totaling USD 17.4 billion compared to the same quarter of the previous year. Net income also saw an impressive 36.2% year-over-year growth, amounting to USD 2.9 billion.
Share Price
On Friday, DEERE reported its second-quarter earnings results for the fiscal year 2023, ending April 30th 2023. The stock opened at $390.8 and closed at $363.6, down by 1.9% from its last closing price of $370.5. Despite the weak financial results, DEERE’s management team remains confident about the company’s long-term prospects and is continuing to focus on increasing efficiency and optimizing its product mix to deliver strong returns in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Deere. DEERE_Reports_Q2_FY2023_Earnings_Results_Ending_April_30_2023″>More…
| Total Revenues | Net Income | Net Margin |
| 58.95k | 8.95k | 14.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Deere. DEERE_Reports_Q2_FY2023_Earnings_Results_Ending_April_30_2023″>More…
| Operations | Investing | Financing |
| 6.31k | -8.09k | 3.23k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Deere. DEERE_Reports_Q2_FY2023_Earnings_Results_Ending_April_30_2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 98.35k | 75.85k | 71.99 |
Key Ratios Snapshot
Some of the financial key ratios for Deere are shown below. DEERE_Reports_Q2_FY2023_Earnings_Results_Ending_April_30_2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.3% | 39.6% | 22.8% |
| FCF Margin | ROE | ROA |
| 3.5% | 38.5% | 8.6% |
Analysis
At GoodWhale, we have conducted an in-depth examination of Deere’s financials. Our analysis revealed that Deere is classified as a ‘gorilla’, a type of company that has achieved stable and high revenue or earnings growth due to its strong competitive advantage. This makes it an attractive investment opportunity for investors looking to get a steady return over a long period of time. In terms of financial health, Deere scored highly with a 7/10 score. This indicates that the company is capable of paying off its debt and funding future operations. Moreover, Deere is strong in the areas of dividend, growth and profitability and medium in asset. All these factors taken together make it a highly attractive investment opportunity. Overall, Deere stands out as a strong long-term investment option with attractive returns and robust financial health. By investing in such companies, investors can look forward to steady returns over a long period of time. DEERE_Reports_Q2_FY2023_Earnings_Results_Ending_April_30_2023″>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
Deere & Company reported strong second quarter financial results for FY2023, with revenue increasing 30.1% to $17.4 billion and net income increasing 36.2% to $2.9 billion, compared to the same quarter of the prior year. This impressive growth was driven by strong demand for agricultural and construction equipment as well as increased market share for Deere products. Investors should be encouraged by the strong financial performance and positive outlook for the company going forward. Deere has also continued to invest in innovation and research and development, which should help them maintain their competitive advantage and further increase revenues and profits.
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