DEERE Reports Record Earnings for First Quarter of FY2023
March 14, 2023
Earnings Overview
DEERE ($NYSE:DE) released its first quarter FY2023 earnings results on January 31, 2023, with total revenue reaching USD 2.0 billion, marking a 117.8% increase from the first quarter of the previous year. Net income reported for the quarter was USD 12.7 billion, a 32.2% surge compared to the same quarter the year prior. The quarter ended on February 17, 2023.
Transcripts Simplified
John Deere reported a strong start to the year with guidance indicating a strong rest of year. The backdrop is supportive and farmer fundamentals are strong. Cash receipts and farmer net income are down from the peak, but still at a positive level. The cycle has unfolded at a slower pace due to supply constraints, and there is still some demand that is being pushed into subsequent years.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Deere. More…
| Total Revenues | Net Income | Net Margin |
| 54.94k | 8.19k | 14.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Deere. More…
| Operations | Investing | Financing |
| 6.01k | -8.37k | 2.06k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Deere. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 91.62k | 70.18k | 67.82 |
Key Ratios Snapshot
Some of the financial key ratios for Deere are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.5% | 37.1% | 18.5% |
| FCF Margin | ROE | ROA |
| 3.6% | 30.6% | 7.0% |
Market Price
DEERE stock opened at $419.0 and closed at $433.3, a 7.5% rise from the previous day’s closing price of 403.0. This marked the highest closing price for DEERE in almost a year, and the stock has generally been trending upwards over the past few months. The impressive performance of DEERE’s stock was driven by a strong quarterly report. The strong earnings and stock performance of DEERE demonstrate the company’s ability to thrive in a difficult economic climate.
This is due in large part to its focus on providing innovative products that meet customer needs and its commitment to cost-efficiency. As DEERE continues to report strong results, investors are sure to be encouraged by the company’s continued success. Live Quote…
Analysis
At GoodWhale, we have conducted a thorough analysis of DEERE’s financials. Our risk rating assigns DEERE a medium risk investment across both financial and business aspects. We have detected two risk warnings in their income statement and balance sheet. To get more information and a detailed review, become a registered user on our website. We offer comprehensive insights into DEERE’s past financial performance and current risk profile. Our rating and analysis of DEERE’s financials will help you make an informed decision about investing in the company. More…
Peers
Deere & Co. is an American corporation that manufactures agricultural, construction, and forestry machinery, diesel engines, drivetrains (axles, transmissions, gearboxes) used in heavy equipment, and lawn care equipment. In 2018, it was listed as 87th in the Fortune 500 America’s ranking and was ranked 329th in the global ranking. The company also provides financial services and other related activities. Deere & Co.’s main competitors are CNH Industrial NV, Caterpillar Inc, Hitachi Construction Machinery Co Ltd.
– CNH Industrial NV ($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 positively to DEERE‘s first quarter earnings report for FY2023, with the stock price increasing on the news. The company reported total revenue of USD 2.0 billion, a 117.8% increase from the same quarter the year prior, and net income of USD 12.7 billion, a 32.2% rise year-over-year. These figures signify that DEERE is continuing to grow and that its financial health is strong. This bodes well for long-term investors who are bullish on the company and its prospects for producing more profits in the future.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
