The latest trading session saw Deere (DE) ending at $400.91, denoting a +0.26% adjustment from its last day's close. This move outpaced the S&P 500's daily loss of 0.57%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 1.64%.Shares of the agricultural equipment manufacturer witnessed a gain of 8.39% over the previous month, beating the performance of the Industrial Products sector with its gain of 7.71% and the S&P 500's gain of 4%.The investment community will be paying close atte ...

On 12/28/23, Illinois Tool Works, Canadian Pacific Kansas City, and Deere will all trade ex-dividend for their respective upcoming dividends. Illinois Tool Works, will pay its quarterly dividend of $1.40 on 1/11/24, Canadian Pacific Kansas City will pay its quarterly dividend of $0.19 on 1/29/24, and Deere will pay its quarterly dividend of $1.47 on 2/8/24.Start slideshow: 10 Stocks Where Yields Got More Juicy »As a percentage of ITW's recent stock price of $261.91, this dividend works out to approximately ...

The stock market has had a phenomenal year overall, but a lot of the market has been left behind. Gains have been concentrated among a few large stocks, while profitable slower-growth companies are all but forgotten.I think the absurdly cheap values on the market today include Verizon Communications (VZ 0.35%), PayPal Holdings (PYPL 0.52%), and Deere & Company (DE 1.57%). Let's review.1. VerizonShares of Verizon have been cheap for years, and for good reason. The company spends a lot of money on building ou ...

Financial Performance - In fiscal year 2023, the Production and Precision Agriculture (PPA) segment generated net sales of $26,790 million, a 22% increase from $22,002 million in fiscal year 2022[14]. - The Small Agriculture and Turf (SAT) segment reported net sales of $13,980 million in fiscal year 2023, reflecting a 4% increase from $13,381 million in fiscal year 2022[16]. - The Construction and Forestry (CF) segment achieved net sales of $14,795 million, accounting for 27% of total equipment operations net sales[12]. - CF segment net sales for fiscal year 2023 reached $14,795 million, an 18% increase from $12,534 million in fiscal year 2022[22]. - Net income rose to $2.073 billion in 2023, compared to $1.073 billion in 2022, reflecting strong market conditions[120]. - Net sales for equipment operations increased to $26.790 billion in 2023, up 22% from $22.002 billion in 2022, driven by strong demand and price realization[126]. - Financial services revenue rose by 36% to $5.554 billion in 2023, driven by higher average financing rates and increased receivables[131]. - Net income attributable to Deere & Company was $9,547 million in 2023, an increase from $6,251 million in 2022, marking a growth of 53%[160]. - Total income before income taxes was $48,232 million in 2023, compared to $43,450 million in 2022, indicating an increase of 11%[159]. - The company reported a total number of shares repurchased in Q4 2023 of 6,479 thousand, with an average price per share of $410.43[100]. Strategic Initiatives - The company aims to enhance customer value through its Smart Industrial Operating Model, focusing on production systems, technology stack, and lifecycle solutions[9]. - The Leap Ambitions framework, introduced in fiscal year 2022, targets economic value and sustainability, with goals related to workforce safety, product circularity, and environmental footprint[9]. - The company plans to introduce electric and hybrid-electric options across its product families, including a fully autonomous, battery-powered electric agricultural tractor[9]. - The acquisition of Smart Apply, Inc. in fiscal year 2023 aims to improve productivity and optimize inputs for high-value crop customers[16]. - The company is focused on integrating precision technologies and connectivity capabilities to support sustainability goals for its customers[16]. - The company continues to invest in advanced technology and integrated agricultural solutions to enhance productivity and sustainability for its customers[14]. - The company is committed to delivering hybrid-electric and battery electric equipment solutions to reduce emissions while maintaining performance[22]. - The company aims to offer an electric option in each turf and compact utility tractor product family by 2026 to comply with new emissions regulations[40]. Market Conditions and Demand - Backlog orders as of October 29, 2023, were approximately $7.9 billion for the PPA segment and $3.3 billion for the SAT segment, down from $9.7 billion and $4.6 billion, respectively, in the previous year[35]. - The CF segment backlog orders were approximately $6.4 billion as of October 29, 2023, compared to $8.2 billion at the same time last year[35]. - Retail demand for turf and utility equipment is typically higher in the second and third fiscal quarters, influencing production and shipment schedules[21]. - Demand for large agricultural equipment is expected to decline in 2024 across North America, Europe, and South America[116]. - Agricultural fundamentals are anticipated to moderate in 2024 due to lower commodity prices and elevated interest rates, despite declining input costs[116]. Operational Challenges - The company has implemented early order programs for certain equipment, offering discounts to customers who place orders in advance of the use season[21]. - The construction and forestry segment aims to address industry challenges such as jobsite safety and skilled labor shortages through smart technology solutions[22]. - The company is facing risks associated with fluctuating agricultural commodity prices, which directly affect sales of agricultural equipment[58]. - The company anticipates that changes in government farm programs and policies could influence demand for agricultural equipment[55]. - The company is exposed to currency fluctuations that can materially affect its financial results due to its global operations[58]. - The company may encounter difficulties in integrating acquisitions and joint ventures, which could delay anticipated benefits[61]. - The company has faced challenges in attracting and retaining qualified employees, which could impair its ability to execute its business strategy[79]. - Significant disruptions to the supply chain have led to increased order backlogs and production inefficiencies, adversely affecting business operations[76]. Financial Health and Investments - The company’s internal control over financial reporting was deemed effective as of October 29, 2023[107]. - The company has a strategy to enhance manufacturing efficiency through lean initiatives and digitally connected factory projects[27]. - The company reported finance and interest income of $636 million in 2023, significantly higher than $213 million in 2022, showing a growth of 198%[159]. - Cash returned to shareholders increased by $3.7 billion in 2023, reflecting strong financial performance[137]. - The company has $21.2 billion in payments due on borrowings and securitization borrowings in the next year, along with interest payments of $2.2 billion[139]. - The company’s credit ratings are A+ (Fitch), A2 (Moody's), and A (S&P), with stable or positive outlooks[138]. - The company repurchased common stock worth $7,216 million in 2023, significantly higher than the $3,597 million repurchased in 2022, representing a 100.5% increase[179]. Regulatory and Compliance Issues - The company is subject to stringent engine emission regulations, which may increase research and development costs and affect its ability to manufacture certain products[68]. - Compliance with emissions regulations has added to the cost of products, but the company does not expect a material impact from new California regulations on its business[40]. - The company is subject to complex and changing laws and regulations, which could increase compliance costs and adversely affect business operations[86]. - Ongoing legal proceedings, including a class action lawsuit regarding monopolization claims, could have a material adverse effect on the company's operations and financial results[90]. Research and Development - Research and development expenses increased by 14% to $2.177 billion in 2023, focusing on new technology solutions and product introductions[123]. - The company is investing significantly in research and development for precision technology solutions, which may not yield the desired profitability or sustainability outcomes for customers[62]. - Future strategies include the integration of new technologies such as automation and machine learning to enhance precision technology solutions[156]. Shareholder Returns - The company declared dividends per share of $5.05, an increase from $4.36 in the previous year[165]. - The company has a share repurchase plan announced in December 2022 to buy up to $18.0 billion of shares, with $13.0 billion remaining to be repurchased as of the end of Q4 2023[100]. - The maximum number of shares that may yet be purchased under the repurchase plan is 35.9 million[100].

4Q 2023 Earnings Call Forward-Looking Statements This earnings call and accompanying materials may include forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “forecast,” “guidance,” “project,” “target,” “outlook,” “prospects,” “expect,” “estimate,” “will,” “goal,” “plan,” “anticipate,” “intend,” “predict,” “believe,” “likely,” “future,” “could,” “may,” or other ...

Financial Data and Key Metrics Changes - For fiscal year 2023, net sales and revenues increased by 16% to $61.3 billion, with net sales for equipment operations also up 16% to $55.6 billion. Net income attributable to Deere & Company was $10.2 billion or $34.63 per diluted share [7][8]. - In Q4 2023, net sales and revenues decreased by 1% to $15.4 billion, while net sales for equipment operations fell by 4% to $13.8 billion. However, net income attributable to Deere & Company rose to $2.4 billion or $8.26 per diluted share [8][9]. Business Line Data and Key Metrics Changes - Production and Precision Ag segment saw net sales of $6.965 billion, down 6% year-over-year, with an operating profit of $1.836 billion and a 26.4% operating margin [8][9]. - Small Ag and Turf segment reported net sales of $3.094 billion, down 13%, with an operating profit of $444 million and a 14.3% operating margin [9][10]. - Construction and Forestry segment experienced an 11% increase in net sales to $3.742 billion, with an operating profit of $516 million and a 13.8% operating margin [15][16]. Market Data and Key Metrics Changes - In North America, large ag equipment industry sales are expected to decline by 10% to 15% in 2024, while Small Ag and Turf demand is estimated to decrease by 5% to 10% [10][11]. - European industry sales are forecasted to decline around 10%, with mixed farm fundamentals across Eastern and Western Europe [12][13]. - In South America, industry sales of tractors and combines are expected to decrease by about 10%, influenced by political uncertainty and adverse weather conditions [13][14]. Company Strategy and Development Direction - The company anticipates holding structural gains in profitability despite a decline in demand due to shifting agricultural market dynamics [7][8]. - The focus remains on maintaining high levels of production and managing inventory effectively to align with retail demand [31][35]. - Continued investment in technology and precision agriculture solutions is emphasized to enhance customer value and operational efficiency [46][49]. Management's Comments on Operating Environment and Future Outlook - Management noted that while 2024 may present a more dynamic market environment, the company is well-positioned due to disciplined execution and improved production cost management [24][37]. - The outlook for 2024 includes expectations of a slight decline in overall demand but maintaining profitability through cost management and strategic investments [19][51]. - Management expressed confidence in the company's ability to generate high returns and navigate through cycles effectively, supported by a healthier balance sheet and improved operational efficiencies [58][59]. Other Important Information - The company achieved nearly $12 billion in operating cash flow for the year, with a forecasted net income for 2024 expected to be between $7.75 billion and $8.25 billion [6][19]. - The effective tax rate for 2024 is projected to be between 24% and 26%, with cash flow from equipment operations estimated at $8 billion to $8.5 billion [19][19]. Q&A Session Summary Question: Can you discuss the cost management strategies for 2024? - Management highlighted that disciplined cost management is crucial, with expectations of production costs becoming deflationary for the first time in years, driven by reductions in material and freight costs [63][64]. Question: What is the pricing strategy for 2024? - The pricing strategy is expected to remain positive across all segments, with a slight increase in price realization despite some retail discounts [71][72]. Question: Why is the guidance for production and precision ag lower than industry expectations? - The lower guidance is primarily due to underperformance in Brazil, where inventory levels need to be adjusted to meet targeted levels [75][76]. Question: Can you clarify the expectations for production costs in 2024? - Production costs are expected to be flat to slightly favorable overall, with some components still facing inflationary pressures, particularly labor costs [80][81]. Question: What are the capital allocation priorities for 2024? - The company plans to maintain a similar level of investment in R&D and continue returning cash to shareholders through dividends and share repurchases [84].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission file no: 1-4121 DEERE & COMPANY (Exact name of registrant as specified in its charter) Delaware 36-2382580 (State of incorpo ration) (I ...

Financial Data and Key Metrics Changes - Deere & Company reported net sales and revenues of $15.801 billion, a 12% increase year-over-year, with equipment operations net sales up 10% to $14.284 billion [7] - Net income attributable to Deere was $2.978 billion, or $10.20 per diluted share, which included a $243 million tax benefit [7][16] - The equipment operations margin was reported at 22.6% for the quarter, exceeding expectations [6][17] Business Line Data and Key Metrics Changes - **Production & Precision Ag**: Net sales increased by 12% to $6.806 billion, with an operating profit of $1.782 billion and a 26.2% operating margin [8] - **Small Ag & Turf**: Net sales rose 3% to $3.739 billion, with an operating profit of $732 million and a 19.6% operating margin [8] - **Construction & Forestry**: Net sales were $3.739 billion, up 14%, with operating profits increasing to $716 million and a 19.1% operating margin [13] Market Data and Key Metrics Changes - In the U.S. and Canada, large ag equipment sales are expected to rise approximately 10% for the fiscal year, supported by strong demand and healthy farm net income [9] - Small Ag & Turf industry sales are projected to decline between 5% and 10% due to weaker consumer-oriented products [10] - European industry sales are forecasted to be flat to up 5%, while South American sales are expected to be flat to down 5% [11] Company Strategy and Development Direction - The company is focused on operational excellence and cost reduction, with significant improvements in supply chain management and production cost inflation [19][20] - Deere is integrating technology into its products to enhance value and drive higher average selling prices, with expectations for recurring revenue growth in the future [51][79] - The company is committed to investing in key markets like Brazil, despite short-term production cuts, to support long-term growth [28][69] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the agricultural fundamentals, with expectations for healthy farmer economics and continued strong demand for large ag equipment [25] - The construction market is expected to remain steady, driven by government infrastructure spending and rental re-fleeting [22] - The company anticipates a strong finish to fiscal year 2023, with raised net income guidance to between $9.75 billion and $10 billion [16] Other Important Information - The company is experiencing a significant reduction in premium freight costs, down nearly 50% compared to the previous year [20] - Deere's financial services net income for the third quarter was $216 million, reflecting a 3% year-over-year increase [15] Q&A Session Summary Question: Discussion on higher value per unit and precision ag take rates - Management indicated a continued trend of 3-4% growth in average selling prices beyond inflation, with increasing take rates for precision ag technologies [50][52] Question: Supply chain improvements and inventory management for next year - Management confirmed that supply chain improvements are expected to help manage inventory levels, with a default position to produce in line with retail sales [56][60] Question: Ag fundamentals in Brazil and inventory outlook - Management noted that Brazil's order book is full for the rest of 2023, with expectations to end the year with inventory at target levels [68][69] Question: Year-over-year pricing changes in Production & Precision Ag - Management stated that pricing realization for Production & Precision Ag was 12% in Q3, with expectations for high single digits in Q4 [72] Question: Sustainability of improved margin performance in Construction & Forestry - Management highlighted structural changes and technology integration as key factors supporting improved margins in the construction segment [76][79]

3Q 2023 Earnings Call Safe Harbor Statement and Disclosures This earnings call and accompanying materials may include forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “forecast,” “guidance,” “project,” “target,” “outlook,” “prospects,” “expect,” “estimate,” “will,” “goal,” “plan,” “anticipate,” “intend,” “predict,” “believe,” “likely,” “future,” “could,” “may ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission file no: 1-4121 DEERE & COMPANY (Exact name of registrant as specified in its charter) Delaware 36-2382580 (State of incorpo ration) ( ...