DEERE Reports Record Q3 Revenue and Net Income for FY2023 with 12.2% and 58.5% Year-on-Year Growth Respectively

☀️Earnings Overview

On August 18 2023, DEERE ($NYSE:DE) reported its earnings results for Q3 (ending July 31 2023) of FY2023 – total revenue was USD 15.5 billion, an increase of 12.2% from the same period in the prior year, and net income totaled USD 3.0 billion, representing a 58.5% year-on-year growth.

Analysis

GoodWhale conducted an analysis of DEERE‘s wellbeing, and the results of the Star Chart showed that DEERE is strong in dividend, growth, and profitability. These factors make DEERE a desirable option for investors who are looking for a well-rounded and reliable investment. In addition to its favorable Star Chart ratings, DEERE also has a high health score of 7/10. This score is based on the company’s cashflows and debt, which indicates that DEERE is capable of safely riding out any crisis without the risk of bankruptcy. Therefore, investors who are seeking a secure long-term investment may be interested in DEERE. More…

About the Company

Income Snapshot

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

Cash Flow Snapshot

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

Balance Sheet Snapshot

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

Key Ratios Snapshot

Some of the financial key ratios for Deere are shown below. 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 (DEERE) reported strong third quarter results for FY2023 on August 18, 2023. Total revenue was USD 15.5 billion, a year-on-year increase of 12.2%, and net income was USD 3.0 billion, up 58.5% from the same period in the prior year. Despite this performance, the stock price moved down on the same day.

This could be due to investors having larger expectations than what was achieved in the quarter or a more bearish outlook for the future of the company. Overall, this result is a positive sign for investors as it indicates that Deere remains a strong company and is well positioned to benefit over the long term.