Core Insights - Deere & Company reported first-quarter fiscal 2025 earnings of $3.19 per share, exceeding the Zacks Consensus Estimate of $3.13, but reflecting a 49% decline from the prior-year quarter due to lower shipment volumes [1] - Net sales for equipment operations were $6.81 billion, down 35.1% year over year, missing the Zacks Consensus Estimate of $7.70 billion. Total net sales, including financial services, were $8.51 billion, down 30% from the previous year [2] Financial Performance - The cost of sales decreased by 30% year over year to $5.04 billion, while total gross profit fell 46.1% to $1.77 billion. Selling, administrative, and general expenses decreased by 8.8% to $972 million [3] - Total operating profit, including financial services, declined 64% year over year to $793 million [3] Segment Performance - Production & Precision Agriculture segment sales fell 37% year over year to $3.1 billion, with operating profit declining 68% to $338 million [4] - Small Agriculture & Turf sales decreased by 28% to $1.75 billion, with operating profit down 62% to $124 million [5] - Construction & Forestry sales were $1.99 billion, down 38% year over year, and operating profit decreased 89% to $65 million [6] - Financial Services division revenues were $1.45 billion, up 1.5% year over year, with operating income increasing to $266 million [7] Cash and Debt Position - At the end of the first quarter of fiscal 2025, cash and cash equivalents were $6.6 billion, down from $7.3 billion at the end of fiscal 2024. Cash used in operating activities was $1.13 billion, compared to an outflow of $0.91 billion in the prior-year quarter. Long-term debt increased to $43.4 billion from $43.2 billion [8] 2025 Guidance - The company expects net income for fiscal 2025 to be between $5 billion and $5.5 billion. Net sales for Production & Precision Agriculture are projected to decrease by 15-20%, Small Agriculture & Turf sales are expected to decline by 10%, and Construction & Forestry sales are projected to decrease by 10-15% [10] Share Price Performance - Deere's shares have increased by 25.7% over the past year, outperforming the industry's growth of 21.6% [11]

Core Viewpoint - Deere & Co. reported disappointing earnings and provided a subdued forecast, leading to a decline in its stock price [1][2] Financial Performance - In the fiscal first quarter ending January 26, Deere earned $3.19 per share on revenue of $8.51 billion, missing earnings estimates by $0.06 but exceeding revenue expectations by $620 million [2] - Revenue decreased by 30% year over year, indicating weak demand among farmers [2] Market Conditions - The agricultural equipment industry is cyclical, and Deere's performance is affected by fluctuating crop prices and uncertain global demand [2][4] - CEO John C. May emphasized the company's focus on optimizing inventory levels amid challenging market conditions [3] Future Outlook - Management forecasts a decline in precision agriculture sales by 15% to 20% in fiscal 2025, forestry sales down by 10% to 15%, and small equipment and turf sales down by 10% [3] - The current market environment is challenging for selling heavy equipment, as farmers typically purchase when crop prices are high [4]

Core Insights - Deere & Company experienced a significant drop in shares following disappointing first-quarter sales for fiscal 2025, which fell short of analyst expectations [1][6] Company Performance - Sales for the first quarter decreased by 30% year-over-year, totaling $8.51 billion, which is approximately $500 million below analyst consensus [2][6] - The company reported earnings of $3.19 per share for the quarter ending January 28, down from $6.23 per share a year prior, but slightly above estimates by 8 cents [2][6] Future Outlook - Deere has maintained its full-year profit forecast between $5 billion and $5.5 billion, aligning closely with the current analyst expectation of $5.27 billion [3] - The company anticipates a decline in sales across its divisions, projecting a 10% drop in its small agriculture and turf segment, and a 10% to 20% decline in production, precision agriculture, and construction and forestry divisions [4][5][6] - The sales forecast does not account for potential impacts from import tariffs and retaliatory actions from other countries, indicating a volatile market environment [5]

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].

Group 1 - The automotive industry is facing significant challenges, with market capitalizations of several key companies being halved [1] - The focus on long-term growth and dividend growth investing is emphasized, highlighting the importance of profitability over low valuation [1] - Key metrics for evaluating stocks include margins, free cash flow stability and growth, and returns on invested capital [1] Group 2 - The article does not provide any specific stock recommendations or investment advice [2][3]

Core Viewpoint - Deere & Company is expected to report a significant decline in earnings and revenues for the first quarter of fiscal 2025, with challenges stemming from weak farmer spending and high production costs [2][6]. Financial Performance Estimates - The Zacks Consensus Estimate for Deere's earnings has decreased by 0.3% over the past 60 days to $3.14 per share, indicating a 49.6% decline from the previous year [2]. - Revenue estimates are set at $7.7 billion, reflecting a 26.6% year-over-year decrease [2]. - The earnings surprise history shows an average surprise of 13.5% over the last four quarters, with reported earnings consistently beating estimates [4]. Segment Performance Projections - The Production & Precision Agriculture segment is projected to generate revenues of $3.59 billion, down 26% year-over-year, with operating profit expected to fall by 59.6% to $422 million [8]. - The Small Agriculture & Turf segment's revenues are estimated at $1.90 billion, indicating a 21.5% decline, with operating profit expected to decrease by 46.6% to $174 million [9]. - The Construction & Forestry segment is forecasted to have sales of $2.35 billion, a 26.9% drop, with operating profit predicted to plunge 56.5% to $596 million [10]. - The Financial Services segment is expected to see revenues of $1.59 billion, an 11.1% increase, with operating profit projected at $230 million [11]. Market Context - Deere's stock has increased by 21.3% over the past year, outperforming the industry average growth of 18.7% [12]. - The company is currently ranked 3 by Zacks, indicating a hold position, with a positive Earnings ESP of +1.12% suggesting a potential earnings beat [5][6].