- Net Income: Deere reported $1.73 billion in net income, a 42% decline year-over-year (y/y), but it beat the estimate of $1.59 billion.
- Earnings Per Share (EPS): EPS stood at $6.29, down from $10.20 y/y.
- Production & Precision Agriculture Net Sales: $5.10 billion, a 25% decrease y/y, yet above the estimated $4.77 billion.
- Production & Precision Agriculture Operating Profit: $1.16 billion, down 35% y/y, surpassing the estimate of $899.7 million.
- Production & Precision Agriculture Operating Margin: 22.8%, compared to 26.2% y/y, and higher than the estimated 18.9%.
- Small Agriculture & Turf Net Sales: $3.05 billion, a decline of 18% y/y, but higher than the estimated $2.85 billion.
- Small Agriculture & Turf Operating Profit: $496 million, a 32% drop y/y, still beating the estimate of $384.1 million.
- Small Agriculture & Turf Operating Margin: 16.2%, down from 19.6% y/y, but above the estimate of 13.5%.
- Construction & Forestry Net Sales: $3.24 billion, a 13% decrease y/y, falling short of the estimated $3.31 billion.
- Construction & Forestry Operating Profit: $448 million, down 37% y/y, below the estimate of $591.1 million.
- Construction & Forestry Operating Margin: 13.8%, compared to 19.1% y/y, and lower than the estimated 17.8%.
- Financial Services Net Income: $153 million, a 29% decline y/y, missing the estimate of $221.6 million.
- Other Revenue: $276 million, down 4.5% y/y, but above the estimate of $236.4 million.
Deere & Co on Smartkarma
Analyst coverage of Deere & Co on Smartkarma showcases insights from top independent analysts. Baptista Research provides valuable research reports on Deere & Co, offering a bullish sentiment towards the company’s performance. In the report titled “Deere & Company: These Are The 6 Most Pivotal Factors Driving Its Performance In 2024 & Beyond! – Major Drivers,” Baptista Research highlights the challenges faced by Deere & Co in Q2, including a decline in net sales and revenues, particularly in the agriculture sector. Despite this, the report breaks down the business segments, emphasizing key financial metrics like net sales reaching $6.581 billion for the Production and Precision Ag business.
Furthermore, in another report by Baptista Research titled “Deere & Co: Expansion In Precision Agriculture & 5 Other Factors Driving Growth In 2024! – Major Drivers,” the analysis points out Deere & Company’s strong operational performance amidst a competitive market. The report mentions stable demand across various sectors, with solid execution reflected in an 18.5% margin for equipment operations in the first quarter. However, the report also notes a decrease in land sales and equipment operations, indicating a mixed performance for the company in different aspects of its business.
A look at Deere & Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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
An investment analyst examining the Smartkarma Smart Scores for Deere & Co sees a mixed long-term outlook for the company. While Deere & Co scores well in areas like Growth and Dividend, it falls short in Value and Resilience. With a Growth score of 4, the company is expected to experience strong growth opportunities in the foreseeable future, which is promising for investors looking for potential returns. Additionally, a Dividend score of 3 indicates a moderate outlook for dividend payments, offering a semblance of stability to income-focused investors. However, the Value score of 2 suggests that the stock may not be undervalued, potentially limiting immediate gains. Furthermore, a Resilience score of 2 signals some vulnerability to economic downturns or industry challenges, posing risks to investors.
Deere & Co is a multinational corporation known for manufacturing and distributing a wide range of agricultural, construction, and forestry equipment. The company also offers commercial and consumer equipment, replacement parts, and financing services. With a global presence, Deere & Company caters to a diverse customer base worldwide, solidifying its position as a key player in the equipment manufacturing industry. Despite some strengths in Growth and Dividend, investors should consider the overall Smart Scores to make informed decisions regarding the long-term prospects of investing in Deere & Co.
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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