- Deere 2Q reported a net income of $2.37 billion, beating the estimate of $2.16 billion but showing a 17% decrease year-on-year.
- Earnings per share stood at $8.53, in contrast to previous year’s $9.65 EPS.
- Production & precision ag net sales were reported at $6.58 billion, surpassing the estimate of $6.13 billion, albeit a 16% annual decrease.
- Operating profit from the Production & Precision Agriculture was $1.65 billion, outshining the estimate of $1.44 billion but falling by 24% from the previous year.
- Operating margin in Production & Precision Agriculture was 25.1%, down from 27.7% last year.
- On the other hand, small ag & turf net sales dropped by 23% year-on-year to $3.19 billion, falling short of the estimation of $3.42 billion.
- The operating profit from Small Agriculture & Turf also fell by 33% year-on-year to $571 million, slightly surpassing the estimate of $560.6 million.
- Small Agriculture & Turf showed an operating margin of 17.9%, down from last year’s 20.5%.
- Construction & Forestry net sales were $3.84 billion, beating the estimate of $3.62 billion but marking a 6.5% drop from the previous year.
- Operating profit in Construction & Forestry fell 20% year-on-year to $668 million, lower than the estimate of $699 million.
- The operating margin for Construction & Forestry came in at 17.4%, as opposed to 20.4% last year.
- Financial services reported a net income of $162 million, a substantial rise from last year’s $28 million, but slightly below the estimate of $170.7 million.
- Other revenue amounted to $230 million, a 14% rise from the previous year, but missed the estimation of $245.5 million.
- Company rating: 13 buys, 10 holds, 2 sells, as per provided information.
Deere & Co on Smartkarma
Analysts at Baptista Research on Smartkarma have provided insightful coverage of Deere & Company, a major player in the agriculture industry. In their report titled “Expansion In Precision Agriculture & 5 Other Factors Driving Growth In 2024! – Major Drivers,” the analysts highlighted Deere’s strong performance despite a competitive market. With solid execution and an 18.5% margin for equipment operations in the first quarter, the company demonstrated resilience. Despite a 4% decrease in land sales and an 8% drop in equipment operations revenue, Deere’s stable demand across sectors was noted.
In another report by Baptista Research, titled “Deere & Company: Pricing Strategy & Market Positioning & Other Major Drivers,” analysts celebrated Deere’s impressive operating margins of nearly 22% in the previous quarter, leading to remarkable operating cash flow. The success was attributed to robust market demand, efficient operational execution, and improved production costs. Although net sales in small ag and turf saw a 13% decline, reaching $3.094 billion, the analysts remained bullish on Deere’s overall performance and market positioning.
A look at Deere & Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| 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 leading manufacturer of agricultural and construction equipment, has a promising long-term outlook according to Smartkarma’s Smart Scores. With a strong growth score of 5, Deere is positioned for future expansion and development in its industry. This indicates a positive trajectory for the company’s profitability and market position over time. Additionally, Deere’s momentum score of 4 suggests that the company is showing positive performance and gaining traction in the market. While the value, dividend, and resilience scores are moderate, the high growth and momentum scores bode well for Deere’s long-term prospects.
Deere & Company’s global presence and diverse range of products and services contribute to its overall resilience in the market, as reflected in its resilience score of 2. The company’s focus on innovation and technological advancements further support its momentum and growth potential. While there may be areas for improvement, such as value and dividend scores, Deere’s strong performance in growth and momentum signifies a positive outlook for the company’s future. Overall, Deere & Company’s strategic positioning and market presence indicate a promising long-term trajectory in the agricultural and construction equipment industry.
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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