- For 2025, Deere forecasts net income between $5.0 billion to $5.5 billion, missing the estimate of $5.83 billion.
- In the fourth quarter, Deere reported earnings per share (EPS) of $4.55, a significant drop from $8.26 in the previous year.
- Deere’s net income for the fourth quarter was $1.25 billion, down 47% year-over-year, but exceeded the estimate of $1.06 billion.
- Production & Precision Agriculture had net sales of $4.31 billion, down 38% from last year, just shy of the estimated $4.37 billion.
- Operating profit for Production & Precision Agriculture was $657 million, representing a 64% decrease from the previous year.
- The operating margin for Production & Precision Agriculture deteriorated to 15.3% from 26.4% year-over-year, better than the forecasted 13.3%.
- Small Agriculture & Turf segment saw net sales of $2.31 billion, a 25% drop from last year, but slightly above the $2.25 billion estimate.
- This segment’s operating profit fell 47% to $234 million, with an operating margin of 10.1% compared to last year’s 14.4%, yet surpassed the 7.09% estimate.
- Construction & Forestry net sales were $2.66 billion, down 29% from last year, and nearly aligned with the anticipated $2.67 billion.
- The operating profit in Construction & Forestry was $328 million, a 36% year-over-year decline.
- Construction & Forestry’s operating margin decreased to 12.3% from 13.8% in the previous year, performing better than the estimated 9.56%.
- Financial Services reported net income of $173 million, down 8.9% from last year and below the $226.5 million forecast.
- Other revenue sources rose by 31% to $346 million, exceeding the estimate of $228.7 million.
- Analyst ratings include 12 buys, 9 holds, and 2 sells for Deere’s stock.
Deere & Co on Smartkarma
Analysts on Smartkarma, a platform for independent investment research, have provided coverage on Deere & Company (DE) with various insights and sentiments.
Value Investors Club highlighted Deere’s strong underlying business in the agriculture and construction equipment industry, emphasizing its technological innovation, solid management team, and global presence as key strengths for long-term growth potential. Baptista Research discussed the challenges Deere faces, such as reduced demand in agricultural and construction sectors leading to a decline in net sales and revenues. Despite tough market conditions, Deere maintained a disciplined approach, evident from a respectable equipment operations margin. With insights from different analysts, investors can gain a comprehensive view of Deere & Company’s performance and outlook in the market.
A look at Deere & Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Deere & Company, a well-known manufacturer of agricultural and construction equipment, has received a mixed bag of Smart Scores. While scoring well in Growth and Momentum, indicating potential future growth and market performance, the company falls short in terms of Value and Resilience. This suggests that despite its positive growth prospects and current market momentum, Deere & Co may not be seen as undervalued and could potentially face challenges in maintaining resilience in the face of market fluctuations.
Overall, Deere & Co‘s outlook seems promising in terms of growth and market momentum, but investors should be cautious of the company’s valuation and resilience factors. With its global reach and diverse product offerings, Deere & Company continues to be a key player in the agricultural and construction equipment industry, providing a range of equipment and financing services to customers worldwide.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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