Deere Beats Expectations with Record-Breaking $8.26 GAAP EPS and $15.41B Revenue

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Deere ($NYSE:DE) & Company, commonly known as Deere, is an American multinational corporation that manufactures agricultural, forestry, and construction equipment. The company recently released their financial results for the first quarter of 2021, exceeding expectations on both revenue and earnings per share (EPS). Deere reported a GAAP EPS of $8.26, which beat analysts’ estimates by $0.85. Revenues for the quarter totaled $15.41B, exceeding estimates by $1.75B. The strong performance was attributed primarily to the increased demand for Deere’s agricultural equipment in North America and Europe, as well as increased demand for its construction and forestry equipment.

Additionally, the company’s cost reduction efforts and share repurchases during the quarter also contributed to its success. Despite the positive news, Deere’s stock price fell slightly on the news due to investors’ concerns about the increasing cost of raw materials and labor. Overall, Deere’s record-breaking $8.26 GAAP EPS and $15.41B revenue demonstrate the strength of the company’s business model and its ability to adapt to challenging market conditions. Investors should keep a close eye on Deere in the coming quarters as it looks to build on this strong performance.

Earnings

Deere & Company, commonly known as DEERE, has reported its earning report for FY2023 Q3 as of July 31 2021. Despite the difficult global economic climate, DEERE achieved an impressive result with 11.24B USD in total revenue, a record-breaking 8.26 USD in GAAP EPS and 1.67B USD in net income. These results are especially notable when compared to the same period in the previous year, in which there was an 18.8% decrease in total revenue and an 11.2% decrease in net income.

Notably, DEERE’s total revenue has grown from 11.24B USD to 15.54B USD in the last 3 years, a major improvement for the company. This indicates that DEERE has been able to maintain its market position despite the economic downturn.

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

Some of the financial key ratios for Deere are shown below. More…

Share Price

Deere & Company, a world leader in providing advanced products and services for agriculture and forestry, recently announced a record-breaking financial performance for their second quarter of fiscal 2021. On Wednesday, DEERE stock opened at $361.0 and closed at $370.8, representing a decrease of 3.1% from their previous closing price of 382.6. The strong financial performance was attributed to Deere’s successful execution of its long-term strategy to grow its presence in key markets, such as agriculture and turf care, construction and forestry, and commercial and consumer equipment. This success was also due to the company’s focus on innovation and technology adoption, which has enabled it to deliver leading products and services to its customers. Live Quote…

Analysis

GoodWhale has conducted an analysis of DEERE‘s financials, and based on our Star Chart, we found that DEERE has a strong performance in terms of dividend, growth, and profitability. It is considered to have a medium rating in terms of asset. Additionally, DEERE has a high health score of 8/10. This means that DEERE is capable of sustaining future operations in times of crisis due to its cashflows and debt load. In conclusion, GoodWhale classifies DEERE as a ‘gorilla’, a type of company that achieved stable and high revenue or earning growth due to its strong competitive advantage. Investors looking for long-term value and stability in their portfolio may be interested in such a 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

DEERE is a multinational corporation that specializes in the manufacturing, distribution, and sale of agricultural and forestry equipment, as well as other related businesses. The company recently reported its second quarter earnings, beating analyst estimates for both earnings per share (EPS) and revenue. Specifically, DEERE reported GAAP EPS of $8.26, which beat the consensus estimate by $0.85, and revenue of $15.41B, surpassing the consensus estimate by $1.75B.

Despite the positive news, the stock price moved down the same day. Investors should consider evaluating DEERE’s financial performance in the context of its peers in the industry and its competitors, along with any other relevant factors that may influence the stock price.