DEERE Reports Record Earnings for Fiscal Year 2023 Q4
December 12, 2023
🌥️Earnings Overview
On November 22 2023, DEERE ($NYSE:DE) reported their Fiscal Year 2023 Q4 earnings results with a total revenue of USD 15.2 billion, a 0.8% decrease from the same period in the previous year. Net income for the quarter was USD 2.4 billion, a 5.3% increase year-over-year.
Share Price
DEERE stock opened at $361.0 and closed at $370.8, down by 3.1% from the previous closing price of $382.6. The stock price’s dip is a result of the company’s warning that the current market conditions are expected to be challenging going forward.
In addition, DEERE’s global equipment operations division also reported higher earnings due to strong demand across all its major markets. Despite these strong results, DEERE remains cautious about the future and has warned investors that the current market conditions are expected to be challenging going forward. They are looking to maintain their current level of performance in the face of these headwinds and continue to grow their business in the long-term. The company remains cautious about the future, but is optimistic about its ability to navigate the current market conditions to continue to post strong results. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Deere. DEERE_Reports_Record_Earnings_for_Fiscal_Year_2023_Q4″>More…
| Total Revenues | Net Income | Net Margin |
| 60.25k | 10.17k | 16.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Deere. DEERE_Reports_Record_Earnings_for_Fiscal_Year_2023_Q4″>More…
| Operations | Investing | Financing |
| 8.59k | -8.75k | 2.81k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Deere. DEERE_Reports_Record_Earnings_for_Fiscal_Year_2023_Q4″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 104.09k | 82.2k | 75.64 |
Key Ratios Snapshot
Some of the financial key ratios for Deere are shown below. DEERE_Reports_Record_Earnings_for_Fiscal_Year_2023_Q4″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.2% | 49.7% | 25.7% |
| FCF Margin | ROE | ROA |
| 6.8% | 43.1% | 9.3% |
Analysis
After examining the financials of DEERE, we here at GoodWhale have conducted an analysis of the company. According to our Star Chart, DEERE has a high health score of 8/10, indicating its strong ability to pay off debt and fund future operations. We also see DEERE as being strong in dividend, growth, and profitability, as well as medium in asset. Based on our analysis, we classify DEERE as a ‘gorilla’ type of company, which suggests that it has achieved stable and high revenue or earning growth due to its strong competitive advantage. We believe that this type of company would be attractive to long-term investors who are looking for growth and stability. 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
Investing analysis of Deere & Co. (DEERE) in the fourth quarter of Fiscal Year 2023 shows a slight decrease in revenues of 0.8% year over year to USD 15.2 billion, while net income increased by 5.3% to USD 2.4 billion. This caused DEERE stock to move down on the same day. This could be due to market expectations being higher than the actual performance of the company. Nevertheless, investors should closely monitor Deere & Co’s financial metrics and corporate developments in order to assess the company’s performance and make more informed investing decisions.
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