Deere Reports Record-Breaking Quarter with Surpassing Earnings and Revenues

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Deere ($NYSE:DE) & Company, or simply Deere, is a manufacturing company that specializes in agricultural, construction, and forestry machinery. The company recently reported its best ever quarter, with GAAP earnings per share of $9.65 exceeding estimates by $1.01, and total revenue of $17.39 billion outperforming expectations by $2.52 billion. The standout performance was a result of higher-than-expected sales in all of the company’s business segments, as well as cost management actions. This was due to higher sales of tractors and harvesting equipment, which offset declines in other categories.

Furthermore, the company’s strong cash flow allowed it to both invest in its business and return cash to shareholders through dividend payments and share repurchases. The company’s ability to capitalize on opportunities and manage costs effectively have enabled it to deliver record-breaking results that have surpassed expectations.

Earnings

In the first quarter of FY2023 ending January 31 2023, DEERE reported record-breaking earnings, with total revenue reaching 12.65 billion US dollars and net income standing at 1.96 billion US dollars. Compared to the previous year, this represents a 32.2% increase in total revenue and a 117.8% increase in net income. In the last three years, DEERE’s total revenue has skyrocketed from 9.11 billion US dollars to 12.65 billion US dollars, highlighting the company’s success and growth potential.

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…

Price History

Deere, the industrial equipment and agricultural machinery manufacturing company, reported a record-breaking quarter on Friday, surpassing both revenue and earnings expectations. Despite the strong results, DEERE’s stock opened at $390.8 and closed at $363.6, down by 1.9% from the prior closing price of $370.5. Analysts attributed the decline to Wall Street’s expectations that were already priced into the market. Nevertheless, the positive results signify a healthy and successful performance from Deere in the first quarter of the year. Live Quote…

Analysis

GoodWhale recently conducted an analysis of DEERE’s wellbeing, with our Risk Rating system. After looking at company data and financials, we have determined that DEERE is a medium risk investment in terms of financial and business aspects. We have detected two risk warnings in DEERE’s income sheet and balance sheet, which can have a significant impact on their business success. If you’re interested in learning more, you can visit goodwhale.com to see the full details of our analysis. Our dedicated team of experts is always available to answer any questions or concerns you may have. Deere_Reports_Record-Breaking_Quarter_with_Surpassing_Earnings_and_Revenues”>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 (DE) reported its fiscal third quarter financial results, beating analyst expectations. The strong performance was driven by strong demand for equipment, primarily from North America and Europe, as well as an increase in pricing. With its strong financials and outlook, Deere is a compelling investment option for those seeking to gain exposure to the industrial industry.