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published in Blogs
Nov 25, 2022
Deere (DE, $442.28) beats Q3 earnings expectations

Deere (DE, $442.28) beats Q3 earnings expectations

Deere reported net income for the quarter ending Oct. 30 of $7.44 a share, which surpassed the FactSet consensus of $7.11 a share. Earnings were $4.12 a share in the year-ago quarter.

Total revenue climbed +37.2% year-over-year to $15.54 billion, well above Wall Street expectations of $14.40 billion (according to FactSet). Price realization was positive by about 19 percentage points, thereby offsetting  a three-point adverse impact from a higher U.S. dollar.

Operating profit as a percentage of revenue rose to  18.6% from 14.2%.

For full year 2023, the company expects sales for its largest production and precision agriculture segment to grow 15-20%, and that for small agriculture and turf sales to be flat to up 5%, and for construction and forestry to increase about 10%. Consensus expectations for production and precision agriculture is + 13.4%, small agriculture and turf is a decrease of -0.5% ,and for construction and forestry is grow 6.1%.

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