Core Insights - Deere reported $6.81 billion in revenue for the quarter ended January 2025, reflecting a year-over-year decline of 35.1% and an EPS of $3.19 compared to $6.23 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $7.7 billion by 11.51%, while the EPS exceeded the consensus estimate of $3.13 by 1.92% [1] Revenue Breakdown - Equipment Operations net sales were $6.81 billion, below the estimated $7.83 billion, marking a 35.1% decline year-over-year [4] - Small ag & turf net sales reached $1.75 billion, compared to the estimated $2.02 billion, representing a 27.9% decrease year-over-year [4] - Production & precision ag net sales totaled $3.07 billion, falling short of the estimated $3.54 billion, with a year-over-year decline of 36.8% [4] - Financial services revenues were $1.47 billion, exceeding the estimated $1.33 billion, showing a year-over-year increase of 6.8% [4] - Other revenues amounted to $229 million, below the estimated $316.07 million, reflecting a 29.1% decline year-over-year [4] Performance Metrics - Shares of Deere have returned +11.1% over the past month, outperforming the Zacks S&P 500 composite's +3.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Deere & Co. reported a challenging first quarter for fiscal 2025, with significant declines in earnings and revenue due to unfavorable market conditions and inventory adjustments [2][3][10] Financial Performance - Net income for Q1 2025 was $869 million, or $3.19 per diluted share, down approximately 50% from $1.75 billion or $6.23 per share in Q1 2024 [2][4] - Revenue decreased by 30% to $8.51 billion compared to $12.19 billion in Q1 2024 [2][4] - The operating margin for the Production & Precision Agriculture segment fell to 11.0%, down from 21.6% in the previous year [4] Segment Performance - The Production & Precision Agriculture segment experienced a 37% drop in sales to $3.07 billion, with operating profit plunging 68% to $338 million [7] - The Small Agriculture & Turf division reported a 28% decrease in sales to $1.75 billion, with operating profits declining by 62% to $124 million [8] - The Construction & Forestry segment saw a 38% sales decrease to $2 billion, with operating profit declining by 89% to $65 million [8] - The Financial Services division was an exception, achieving an 11% rise in net income to $230 million [9] Business Overview - Deere operates across four main segments: Production & Precision Agriculture, Small Agriculture & Turf, Construction & Forestry, and Financial Services [5] - The company is focusing on a Smart Industrial Operating Model to enhance operational efficiency and product offerings [5][6] Future Outlook - Management forecasts net income for fiscal year 2025 to range between $5.0 billion and $5.5 billion, indicating resilience despite current challenges [11] - Sales in the Production and Precision Agriculture division are expected to fall by 15% to 20%, while Small Agriculture & Turf and Construction and Forestry sales are projected to decline by 10% to 15% [12]

Group 1: Earnings Performance - Deere reported quarterly earnings of $3.19 per share, exceeding the Zacks Consensus Estimate of $3.13 per share, but down from $6.23 per share a year ago, representing an earnings surprise of 1.92% [1] - The company posted revenues of $6.81 billion for the quarter ended January 2025, missing the Zacks Consensus Estimate by 11.51%, compared to $10.49 billion in revenues a year ago [2] - Over the last four quarters, Deere has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Deere shares have increased approximately 12.5% since the beginning of the year, outperforming the S&P 500's gain of 2.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $5.72 on revenues of $10.96 billion, and for the current fiscal year, it is $19.34 on revenues of $38.69 billion [7] Group 3: Industry Context - The Manufacturing - Farm Equipment industry, to which Deere belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]

Core Insights - Deere & Company reported a significant decline in net income for the first quarter of fiscal 2025, with net income of $869 million, down 50% from $1,751 million in the same quarter of 2024, resulting in earnings per share of $3.19 compared to $6.23 [1][4] - Worldwide net sales and revenues decreased by 30% to $8.508 billion, with net sales at $6.809 billion compared to $10.486 billion in the previous year [1][4] Financial Performance - Production & Precision Agriculture segment saw net sales drop by 37% to $3.067 billion, with operating profit down 68% to $338 million, leading to an operating margin decrease from 21.6% to 11.0% [5] - Small Agriculture & Turf segment reported net sales of $1.748 billion, down 28% from $2.425 billion, with operating profit decreasing by 62% to $124 million and operating margin falling from 13.4% to 7.1% [6][8] - Construction & Forestry segment experienced a 38% decline in net sales to $1.994 billion, with operating profit plummeting 89% to $65 million, resulting in an operating margin decrease from 17.6% to 3.3% [9] Company Outlook - The company forecasts net income for fiscal 2025 to remain stable in the range of $5.0 billion to $5.5 billion, indicating resilience in a challenging market [3][7] - The company emphasizes its focus on optimizing inventory levels of both new and used equipment to navigate uncertain market conditions [2][7] Industry Outlook - The outlook for the agriculture and turf industry indicates a decline of approximately 30% for large agriculture and 10% for small agriculture and turf in the U.S. and Canada, with Europe down about 5% [11] - In the construction and forestry sector, construction equipment is expected to decline by around 10%, while compact construction equipment is projected to decrease by 5% [12]

Financial Performance - Deere & Company reported a net income of $869 million for Q1 2025, a decrease of 50% from $1,751 million in Q1 2024, resulting in earnings per share of $3.19 compared to $6.23[1][5]. - Worldwide net sales and revenues decreased by 30% to $8.508 billion in Q1 2025, down from $12.185 billion in Q1 2024[2][24]. - Net sales for the three months ended January 26, 2025, were $6,809 million, a decrease of 35.5% compared to $10,486 million in the same period of 2024[27]. - Total income after income taxes for the quarter was $868 million, down 50.3% from $1,746 million in the prior year[37]. - Net income attributable to Deere & Company for the first quarter of 2025 was $869 million, down 50.4% from $1,751 million in the first quarter of 2024[27]. - Basic earnings per share decreased to $3.20 in Q1 2025 from $6.25 in Q1 2024, representing a decline of 48.8%[27]. - The company reported a net income attributable to Deere & Company of $639 million, a decline of 58.7% from $1,544 million year-over-year[37]. - Net income for the three months ended January 26, 2025, was $637 million, a decrease of 58.7% compared to $1,541 million in the same period of 2024[42]. Segment Performance - The production and precision agriculture segment saw net sales drop by 37% to $3.067 billion, with operating profit declining by 68% to $338 million[6][24]. - Small agriculture and turf segment net sales decreased by 28% to $1.748 billion, with operating profit down 62% to $124 million[10][24]. - Construction and forestry segment net sales fell by 38% to $1.994 billion, with operating profit down 89% to $65 million[13][24]. Financial Position - Total assets as of January 26, 2025, were $103,119 million, a decrease from $107,320 million as of October 27, 2024[29]. - Total liabilities decreased to $80,555 million as of January 26, 2025, compared to $84,395 million as of October 27, 2024[29]. - Cash and cash equivalents decreased to $6,601 million from $7,324 million, reflecting a reduction in liquidity[40]. - The company’s equity attributable to stockholders was $22,479 million, slightly down from $22,836 million in the previous quarter[40]. - The company’s financing receivables increased to $41,396 million from $44,309 million, showing a shift in financial asset management[40]. Cash Flow and Investments - The company reported a net cash used for operating activities of $1,132 million in Q1 2025, compared to $908 million in Q1 2024[31]. - Cash flows from operating activities showed a net cash outflow of $1,132 million in 2025, compared to an outflow of $908 million in 2024[42]. - Cash flows from investing activities resulted in a net cash outflow of $394 million in 2025, compared to an outflow of $342 million in 2024[42]. - Cash flows from financing activities provided a net cash inflow of $2,567 million in 2025, contrasting with an outflow of $1,399 million in 2024[42]. - Total cash, cash equivalents, and restricted cash at the end of the period was $6,907 million in 2025, up from $5,300 million in 2024[42]. Strategic Outlook - The company forecasts full-year net income for fiscal 2025 to remain in the range of $5.0 billion to $5.5 billion, reflecting resilience in a challenging market[3][4]. - The outlook for the agriculture and turf market indicates a decline of approximately 30% for large agriculture and 10% for small agriculture and turf in the U.S. and Canada[17][18]. - Deere's strategic focus includes optimizing inventory levels of both new and used equipment to navigate uncertain market conditions[3][4]. - The company continues to invest strategically to enhance customer outcomes despite the challenging market environment[4]. - The company plans to continue focusing on market expansion and new product development to drive future growth[37]. Research and Development - Research and development expenses for Q1 2025 were $526 million, slightly down from $533 million in Q1 2024[27]. - Research and development expenses remained stable at $526 million for both periods, indicating a consistent investment in innovation[37]. Dividends and Shareholder Returns - Dividends declared increased to $1.62 per share in Q1 2025 from $1.47 per share in Q1 2024[27]. - The company repurchased common stock amounting to $441 million in 2025, down from $1,328 million in 2024[42].

A bull market is a bull market, and investors should see their portfolios increase in value. But this doesn't mean that every stock goes up. For example, the automotive industry is in deep trouble, with market caps of several important companies getting halved inI 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 ...

Deere & Company (DE) is scheduled to report first-quarter fiscal 2025 results on Feb.13, before the opening bell.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The Zacks Consensus Estimate for Deere’s earnings has moved down 0.3% over the past 60 days to $3.14 per share. The consensus mark implies a 49.6% plunge from the year-ago actual. The consensus estimate for revenues is pegged at $7.7 billion, indicating a 26.6% year-over-year decline.  Image Source: Zacks Investment Research D ...

MOLINE, Ill., Feb. 7, 2025 /PRNewswire/ -- Deere & Company (NYSE: DE) will hold its first quarter 2025 earnings call on Thursday, 13 February, beginning at 9:00 a.m. central time.  During the call, the company's financial and operating performance will be discussed with analysts, investors and other members of the financial community. The earnings call can be accessed at www.JohnDeere.com/earnings. The recorded call will be available on the Deere website for a period of time afterward.  The Deere earnings r ...

Deere (DE) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended January 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 13. On the ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Deere (DE) . This company, which is in the Zacks Manufacturing - Farm Equipment industry, shows potential for another earnings beat.This agricultural equipment manufacturer has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters w ...