Core Viewpoint - Deere's stock has reached an all-time high despite a significant decline in net income, indicating that market expectations may have been lower than actual performance [1][7]. Financial Performance - Deere's net income fell by over 30% in fiscal 2024, reporting $7.1 billion, down from an initial forecast of $7.75 billion to $8.25 billion [5]. - The company projects fiscal 2025 net income to be between $5 billion and $5.5 billion, representing a 26% decline from fiscal 2024 and a 48% decline from fiscal 2023 [5]. - Despite the decline, the projected net income for fiscal 2025 is still significantly higher than pre-pandemic levels, with a market cap of approximately $126.5 billion leading to a price-to-earnings ratio of about 24 [6]. Market Expectations - Expectations for Deere have been relatively low, allowing the stock to rally as the company exceeded these expectations [3][7]. - Analysts noted that Deere's comparable results may improve in the second half of fiscal 2024, potentially leading to slight growth [8]. Strategic Positioning - Deere's CEO highlighted that over 75% of its products sold in the U.S. are assembled domestically, positioning the company favorably against potential tariff increases on imported machinery [9]. - The company has a strong track record of reinvesting in technological innovations and returning capital to shareholders through dividends and stock buybacks [11][13]. Long-term Outlook - There is potential for a return to growth in fiscal 2026, which could make Deere's stock appear undervalued [10]. - Despite uncertainties in demand across its business units, Deere's innovative culture and industry leadership make it a compelling long-term investment [12][14].

Deere & Company (NYSE: DE ) reported Q4 and FY 2024 earnings last week. The market liked these quite a bit, and the stock shot up significantly. Deere was up more than 10% during the week; theBest Anchor Stocks helps you find the best quality stocks to outperform the market with the lowest volatility/growth ratio. We look for top-notch quality compounders, with solid growth and lower volatility than you would expect.Best Anchor Stocks picks have a track record of revenue growth combined with below-average v ...

Deere & Co (DE) reported robust fourth-quarter fiscal 2024 results, beating earnings and revenue estimates. However, the world's largest agricultural equipment maker under the iconic John Deere brand has given a downbeat outlook for fiscal 2025, reflecting some challenges ahead. But this has been unable to offset positive sentiments. Shares of Deere gained 8% at the close following the results. This has put ETFs with the largest allocation to this farm equipment giant in focus. These funds include iShares M ...

Deere & Co. DE shares inched higher in early trading on Friday, after the company reported upbeat fiscal fourth-quarter results.The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.Goldman Sachs On Deere & Co.Analyst Jerry Revich maintained a Buy rating while raising the price target from $466 to $504.Deere's fiscal fourth-quarter results revealed sa ignificant inventory destock of $2.6 billion "to bring dealer inventories to levels approaching prior trough, ...

FONTENAY-LE-PESNEL, FRANCE - OCTOBER 11: A tractor John Deere 6250R pulls the AEROSEM POTTINGER ... [+] pneumatic seed drill through a field near Fontenay-le-Pesnel, Calvados, France, on October 11, 2024. (Photo by Artur Widak/NurPhoto via Getty Images)NurPhoto via Getty ImagesThe stock price of Deere (NYSE: DE) surged 8% on November 21, after the company reported upbeat fiscal Q4 results (fiscal ends in October). It reported equipment revenue of $9.3 billion and earnings of $4.55 per share, compared to the ...

Core Insights - The company offers a dividend yield of 1.5% with a low payout ratio of 20% and a five-year compound annual growth rate (CAGR) of 14.1% [1] Group 1 - The dividend yield is 1.5% [1] - The payout ratio is only 20% [1] - The five-year CAGR is 14.1% [1]

Deere & Company (DE) reported fourth-quarter fiscal 2024 (ended Oct. 27) earnings of $4.55 per share, beating the Zacks Consensus Estimate of earnings of $3.90. The bottom line decreased 45% from the prior-year quarter.The downside was mainly led by lower shipment volumes across all segments, reflecting weak demand. It was somewhat negated by the company’s pricing strategies and lower production expenses.Net sales of equipment operations (comprising Agriculture & Turf, Construction & Forestry) were $9.28 bi ...

Financial Performance - FY2024 - Deere & Company's net sales and revenues for FY2024 reached $61251 million, compared to $51716 million in FY2023[4] - Net sales for Equipment Operations in FY2024 were $55565 million, a 19% increase from $44759 million in FY2023[6] - Net income attributable to Deere & Company for FY2024 was $10166 million, compared to $7100 million in FY2023, with diluted EPS increasing to $3463 per share from $2562 per share[6] Financial Performance - 4Q2024 - Net sales and revenues for 4Q2024 were $11143 million, a 28% decrease compared to $15412 million in 4Q2023[9] - Net sales for Equipment Operations in 4Q2024 were $9275 million, a 33% decrease from $13801 million in 4Q2023[11] - Net income attributable to Deere & Company for 4Q2024 was $1245 million, compared to $2369 million in 4Q2023, with diluted EPS decreasing to $455 per share from $826 per share[11] Segment Performance - 4Q2024 - Production and Precision Ag net sales in 4Q2024 were $4305 million, a 38% decrease from $6965 million in 4Q2023[14] - Small Ag and Turf net sales in 4Q2024 were $2306 million, a 25% decrease from $3094 million in 4Q2023[19] - Construction and Forestry net sales in 4Q2024 were $2664 million, a 29% decrease from $3742 million in 4Q2023[38] Industry Outlook - FY2025 - The industry anticipates a ~30% decrease in Large Ag in the U.S and Canada[24] - The industry anticipates a ~10% decrease in Small Ag and Turf in the U.S and Canada[25] - Europe Ag is expected to decrease by 5-10%[27] Business Segment Outlook - FY2025 - Production and Precision Ag net sales are forecasted to be ~$20834 million with an operating margin of 17-18%[32] - Small Ag and Turf net sales are forecasted to decrease by ~10% with an operating margin of 13-14%[36] - Construction and Forestry operating margin is expected to be 115-125%[46] Deere & Company Outlook - FY2025 - Net income attributable to Deere & Co is forecasted to be ~$16 billion[48] - Net operating cash flow is expected to be $45-55 billion[48]

Financial Data and Key Metrics Changes - Deere & Company reported a 16% decrease in net sales and revenues for fiscal year 2024, totaling $51.7 billion, with equipment operations net sales down 19% to $44.8 billion [10] - Net income attributable to Deere was $7.1 billion, or $25.62 per diluted share, while fourth quarter net sales and revenues fell 28% to $11.1 billion, with equipment operations net sales down 33% to $9.3 billion [11] - Operating margins for equipment operations were 13.1% in Q4 and 18.2% for the full year, reflecting solid execution despite market challenges [8][10] Business Segment Data and Key Metrics Changes - Production and Precision Ag segment net sales decreased 38% year-over-year to $4.305 billion, with an operating margin of 15.3% [11][12] - Small Ag and Turf segment net sales fell 25% to $2.306 billion, with a 10.1% operating margin, impacted by lower shipment volumes [13] - Construction & Forestry segment net sales declined 29% to $2.664 billion, with an operating margin of 12.3% [20] Market Data and Key Metrics Changes - Industry sales of large ag equipment in the U.S. and Canada are expected to decline approximately 30% in 2025 due to weak farm fundamentals and high interest rates [14] - European industry sales are projected to decrease by 5% to 10% due to unfavorable weather and high input costs [15] - South American industry sales are anticipated to be flat, while Asian markets are expected to see slight declines [17] Company Strategy and Development Direction - The company aims to focus on structural improvements and operational excellence to drive customer value, with a commitment to R&D and new product introductions [26][80] - Deere is enhancing its technology offerings, including connected machines and autonomous solutions, to improve productivity and sustainability [29][70] - The company is proactively managing inventory levels to align production with retail demand, particularly in North America [31][37] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about continued contraction in ag markets globally, with expectations for equipment demand to remain at or below trough levels [10][14] - The company highlighted the resilience shown in 2024 and the importance of maintaining strong operational performance amid challenging market conditions [26][80] - Management remains optimistic about future opportunities, emphasizing the need for continued investment in technology and customer solutions [79] Other Important Information - Deere's financial services net income for Q4 was $173 million, with a forecast of $750 million for fiscal year 2025, primarily due to lower provisions for credit losses [23][24] - The company expects full-year net income for 2025 to be in the range of $5 billion to $5.5 billion, with an effective tax rate between 23% and 25% [25] Q&A Session Summary Question: Margin expectations for 2025 - Management indicated that continued volume declines and a mix-driven impact would weigh on margins, but positive pricing and favorable production costs are expected to provide some lift [82][84] Question: Pool funds program for trade-ins - The pool funds program is designed to stabilize the used market during downturns, with additional incentives deployed to help reduce used inventory levels [87][89] Question: Update on retail demand and inventory levels - Management noted a strong finish to the year in retail sales, particularly in October, and emphasized the importance of managing both new and used inventory levels effectively [91]

John Deere (NYSE: DE ) just reported its Q4 earnings . Despite concerns and fears, the market seemed to like the report and Deere's shares are up over 8% . The reason is simple: Deere topped estimates, even I focus on long term growth and dividend growth investing. I follow both the US and the European stock markets, looking for undervalued stock and/or for high quality dividend growing companies that provide me with cash to reinvest. Over time, I have come to realize that profitability is a much safer driv ...