DEERE Reports Record Revenue and Net Income for Third Quarter of FY2023
August 20, 2023
🌥️Earnings Overview
For the third quarter of FY2023 ending July 31 2023, DEERE ($NYSE:DE) reported total revenue of USD 15.5 billion and net income of USD 3.0 billion, marking a 12.2% and 58.5% year-over-year increase, respectively, compared to August 18 2023.
Price History
However, despite this positive result, DEERE stock opened at $407.7 on Friday and closed at $397.0, representing a drop of 5.3% from the last closing price of 419.2. This downward trend can be attributed to investors’ concern over the sustainability of DEERE’s current growth momentum. Despite the short-term stock decline, many analysts remain confident that DEERE can sustain its growth trajectory in the long run, and some even suggest that the company is well-positioned to benefit from the current macroeconomic environment. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Deere. DEERE_Reports_Record_Revenue_and_Net_Income_for_Third_Quarter_of_FY2023″>More…
| Total Revenues | Net Income | Net Margin |
| 60.37k | 10.04k | 15.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Deere. DEERE_Reports_Record_Revenue_and_Net_Income_for_Third_Quarter_of_FY2023″>More…
| Operations | Investing | Financing |
| 7.18k | -8.62k | 3.69k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Deere. DEERE_Reports_Record_Revenue_and_Net_Income_for_Third_Quarter_of_FY2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 103.4k | 80.25k | 78.61 |
Key Ratios Snapshot
Some of the financial key ratios for Deere are shown below. DEERE_Reports_Record_Revenue_and_Net_Income_for_Third_Quarter_of_FY2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.1% | 50.5% | 24.6% |
| FCF Margin | ROE | ROA |
| 4.7% | 40.9% | 9.0% |
Analysis
At GoodWhale, we conducted an analysis of DEERE‘s wellbeing. Based on our Star Chart, DEERE has a high health score of 7/10 with regard to its cashflows and debt, indicating that it is capable to safely ride out any crisis without the risk of bankruptcy. We classified DEERE as a ‘gorilla’, which we define as a company that has achieved stable and high revenue or earnings growth due to its strong competitive advantage. Given DEERE’s strong performance in dividend, growth, profitability, and medium performance in asset, we believe that it would be an attractive company for investors looking for a safe investment with potential for returns. Such investors may include those that have a long-term investment horizon, as well as those looking for a stable and reliable company to diversify their portfolio. Furthermore, those seeking to add value to their investments may be interested in DEERE’s potential for growth. 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 & Company’s third quarter fiscal year 2023 earnings report, released on August 18, 2023. Despite total revenue increasing by 12.2% year-over-year to $15.5 billion and net income rising 58.5% to $3.0 billion, Deere’s stock price experienced a downturn on the same day. As investors continue to analyze Deere’s financials, it is important to keep in mind the increasing demand for Deere products, strong working capital and cash flow from operations, and the company’s ability to meet the changing needs of their customers. Overall, Deere’s strong financials indicate that it is a great investment opportunity for long-term investors.
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