Deere & Company (NYSE:DE) Issues Quarterly Earnings Results

Key Points

• Deere exceeded quarterly expectations: EPS was $5.10 versus the $4.71 consensus, while revenue reached $12.61 billion compared with estimates of $10.81 billion.
• Management raised its full-year outlook for net income to $4.75 billion-$5.00 billion, supported by stronger construction-equipment performance and disciplined execution.
• Agricultural demand remains a concern: Weak farm-equipment spending and Deere’s elevated valuation could limit the durability of the earnings improvement, despite the stock’s “Moderate Buy” consensus rating and $641.98 average price target.

Deere & Company (NYSE:DE - Get Free Report) announced its quarterly earnings results on Thursday. The industrial products company reported $5.10 EPS for the quarter, beating the consensus estimate of $4.71 by $0.39, FiscalAI reports. The company had revenue of $12.61 billion for the quarter, compared to the consensus estimate of $10.81 billion. Deere & Company had a return on equity of 18.25% and a net margin of 10.09%.

Deere & Company Price Performance

Shares of NYSE DE opened at $580.06 on Thursday. Deere & Company has a twelve month low of $433.00 and a twelve month high of $674.19. The company has a market cap of $156.58 billion, a PE ratio of 32.86, a price-to-earnings-growth ratio of 2.49 and a beta of 0.90. The business's 50 day moving average price is $604.36 and its two-hundred day moving average price is $589.65. The company has a quick ratio of 1.95, a current ratio of 2.18 and a debt-to-equity ratio of 1.54.

Deere & Company Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, August 10th. Shareholders of record on Tuesday, June 30th were given a dividend of $1.62 per share. This represents a $6.48 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend was Tuesday, June 30th. Deere & Company's payout ratio is 36.71%.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on DE shares. Wall Street Zen raised Deere & Company from a "sell" rating to a "hold" rating in a research report on Sunday, July 5th. Robert W. Baird cut their price target on Deere & Company from $580.00 to $525.00 and set a "neutral" rating for the company in a report on Friday, May 22nd. Truist Financial raised their price objective on Deere & Company from $759.00 to $812.00 and gave the stock a "buy" rating in a research report on Thursday, July 2nd. Citigroup lifted their price objective on Deere & Company from $575.00 to $610.00 and gave the stock a "neutral" rating in a report on Tuesday, July 14th. Finally, Oppenheimer restated an "outperform" rating and set a $680.00 price objective (down from $715.00) on shares of Deere & Company in a research report on Wednesday, May 27th. Fourteen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $641.98.

Key Deere & Company News

Here are the key news stories impacting Deere & Company this week:

• Positive Sentiment: Major earnings and revenue beat: Deere reported quarterly EPS of $5.10, above the $4.71 consensus estimate, while revenue reached $12.61 billion versus expectations of approximately $10.8 billion. Net income totaled $1.379 billion. Deere quarterly earnings press release
• Positive Sentiment: Full-year outlook improved: Management raised its net income guidance to $4.75 billion-$5.00 billion, signaling that disciplined execution and stronger operating performance are offsetting a difficult market environment. Deere reports third-quarter net income
• Positive Sentiment: Construction equipment provided growth: Continued expansion in Deere’s construction equipment business helped offset softness elsewhere, contributing to higher quarterly profit and sales. Deere's profit rises as sales climb
• Neutral Sentiment: Investor focus remains on agriculture: Deere’s results offer evidence of resilience, but the company’s production agriculture segment continues to face weak demand and cautious farm spending. The earnings beat may therefore be viewed as more dependent on construction and cost discipline than on a broad recovery in its core agricultural market.
• Negative Sentiment: Valuation and cyclical risks remain: With Deere trading at a relatively elevated earnings multiple and agricultural conditions still weak, investors may question how durable the earnings improvement will be if farm equipment demand does not recover.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in DE. Wellington Management Group LLP grew its position in shares of Deere & Company by 32.5% in the fourth quarter. Wellington Management Group LLP now owns 2,436,723 shares of the industrial products company's stock valued at $1,134,465,000 after purchasing an additional 597,087 shares in the last quarter. Invesco Ltd. lifted its position in Deere & Company by 21.7% during the third quarter. Invesco Ltd. now owns 1,815,007 shares of the industrial products company's stock worth $829,930,000 after buying an additional 323,512 shares in the last quarter. Two Sigma Investments LP purchased a new position in Deere & Company during the third quarter worth approximately $143,519,000. Marshall Wace LLP boosted its stake in Deere & Company by 199.9% during the fourth quarter. Marshall Wace LLP now owns 355,466 shares of the industrial products company's stock worth $165,494,000 after buying an additional 236,920 shares during the last quarter. Finally, Raymond James Financial Inc. boosted its stake in Deere & Company by 24.4% during the third quarter. Raymond James Financial Inc. now owns 885,164 shares of the industrial products company's stock worth $404,751,000 after buying an additional 173,457 shares during the last quarter. Institutional investors own 68.58% of the company's stock.

About Deere & Company

Deere & Company, commonly known by its brand John Deere, is a global manufacturer of agricultural, construction and forestry machinery, as well as turf care equipment and power systems. Founded in 1837 by blacksmith John Deere—who developed a polished steel plow to improve tillage in tough prairie soils—the company is headquartered in Moline, Illinois, and has grown into one of the largest and most recognizable names in equipment manufacturing worldwide.

The company's principal businesses include a broad portfolio of agricultural equipment such as tractors, combines, planters, sprayers, harvesters and tillage implements, complemented by precision agriculture technologies and telematics that support farm management, yield optimization and equipment connectivity.

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