Financial Performance - In fiscal year 2024, the Production and Precision Agriculture (PPA) segment generated $20,834 million in net sales, accounting for 47% of total equipment operations net sales[10] - The Small Agriculture and Turf (SAT) segment achieved $10,969 million in net sales, representing 24% of total equipment operations net sales[10] - The Construction and Forestry (CF) segment reported $12,956 million in net sales, making up 29% of total equipment operations net sales[10] - The financial services segment's consolidated tangible net worth was reported at $6,226.2 million as of October 27, 2024[34] - The company's financial results are significantly influenced by the agricultural market business cycle and general economic conditions, with unfavorable conditions in fiscal year 2024 leading to lower sales volumes and higher credit losses[53] - In fiscal year 2024, the company experienced increased sales discounts and higher receivable write-offs, with expectations for these conditions to persist into fiscal year 2025[53] Product Development and Innovation - The company introduced the new S7 Series combines and updated 9RX tractors in fiscal year 2024, featuring advanced automation and new engine options[14] - The company is committed to delivering hybrid-electric and battery electric equipment solutions to reduce tailpipe emissions while maintaining power and performance[22] - The company has a significant investment in research and development to enhance product quality and performance, focusing on sustainable solutions and compliance with regulations[27] - The company is investing in a Solutions as a Service business model to enhance customer value and sustainability[9] - The company utilizes automation and machine learning in its products, which presents both significant benefits and risks, including potential legal liabilities related to data accuracy and privacy[75] Market and Economic Conditions - The company continues to face challenges from higher interest rates and decreasing crop prices, impacting agricultural equipment purchasing decisions[19] - The backlog orders for the Construction and Forestry (CF) segment decreased to approximately $2.2 billion as of October 27, 2024, down from $6.4 billion on October 29, 2023, indicating a decline in demand[31] - Changes in worldwide demand for food and renewable energy are likely to result in fluctuating agricultural commodity prices, directly impacting sales of agricultural equipment[56] - The company faces risks from geopolitical tensions, such as the Russia/Ukraine war, which have exacerbated market volatility and affected agricultural global production and demand levels[56] - High interest rates remain above recent norms, negatively impacting customer demand for equipment and the company's financing spreads[61] Sustainability and Environmental Compliance - The company aims to reduce CO2e emissions from its equipment and is developing fully autonomous, battery-powered agricultural tractors[9] - The company is committed to reducing its environmental footprint through its Leap Ambitions framework and is investing in new engine technologies and aftertreatment systems to comply with emissions regulations[35] - The company continues to monitor and review developing sustainability frameworks and global regulations to mitigate potential environmental liabilities[35] - Compliance with environmental regulations did not materially affect capital expenditures, earnings, or competitive position in fiscal year 2024, and no significant capital expenditures are expected for fiscal year 2025[35][36] - Regulatory changes related to greenhouse gas emissions could increase operating costs and affect the company's ability to sell products in certain markets[81] Supply Chain and Operational Risks - The company has encountered supply chain disruptions due to changes in the availability and prices of raw materials, leading to increased production costs and inefficiencies[56] - The company relies on suppliers for raw materials and components, and disruptions in the supply chain could adversely affect its ability to meet customer commitments[56] - The company anticipates potential future fluctuations in supply chain stability due to ongoing geopolitical and economic uncertainties[56] - The rationalization or restructuring of manufacturing facilities may lead to temporary production constraints and inventory fluctuations[60] - The company emphasizes long-term supplier relationships and proactive supply chain management to mitigate risks and ensure material availability[30] Employee Relations and Workforce Management - As of October 27, 2024, the company had approximately 75,800 employees, with 35,200 being full-time production employees[39] - Approximately 77% of U.S. production and maintenance employees are represented by unions, with collective bargaining agreements expiring between 2025 and 2027[39] - The company offers a variety of working arrangements, including flexible schedules and remote work, to support employee well-being[45] - The ability to attract and retain qualified employees is critical for executing business strategy, with workforce reductions potentially affecting morale and institutional knowledge[69] Legal and Compliance Issues - The company is subject to ongoing legal actions, including a class action lawsuit alleging monopolization in the repair services market for its agricultural equipment[82] - In fiscal year 2024, the company agreed to pay approximately $10.0 million to resolve charges related to violations of the Foreign Corrupt Practices Act (FCPA) due to improper payments by its subsidiary[79] - The company maintains a global compliance hotline for reporting potential violations of its Code of Business Conduct[40] - The company must manage costs and risks associated with product warranties, post-sale repairs, and potential regulatory penalties, which could impact financial results[84] Competitive Landscape - The competitive landscape includes major players such as Caterpillar Inc. and CNH Industrial N.V., with increasing competition from technology-focused companies[26] - The reliance on independent dealers for product distribution poses risks; unsuccessful dealer operations could adversely affect overall sales and revenue[66] - Strategic acquisitions and joint ventures may not yield expected benefits, with integration challenges potentially delaying returns on investment[68] Technology and Cybersecurity - The secure operation of information technology networks is critical to the company's business strategy, and any significant disruptions could harm its reputation and financial condition[73] - The company has not experienced significant cyber incidents that resulted in material business impact, but it continues to be a target of malicious cyber threats, which could compromise networks and stored information[73] - The company faces risks associated with disruptions in technology systems, which could adversely affect operations and sales[76] Customer Demand and Market Trends - Retail demand for turf and utility equipment is typically higher in the second and third fiscal quarters, influencing production and shipment schedules[20] - Unfavorable weather conditions and natural disasters can significantly impact agricultural production, thereby affecting demand for agriculture and turf equipment[58]

Core Points - Deere & Company declared a quarterly dividend of $1.62 per share, payable on February 10, 2025, to stockholders of record on December 31, 2024 [1] - The new quarterly dividend rate reflects an increase of 15 cents per share from the previous level of $1.47 [2]

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 ...

Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives. 438 testimonials and most are 5 stars. Nothing to lose with our FREE 2-week trial .While it yields just 1.5%, the dividend comes with a payout ratio of just 20% and a five-year CAGR of 14.1%. In fact, since the pandemic, it hasAnalyst’s Disclosure: I/we have a beneficial long position in the shares of DE either through stock ownership, options, or other deriva ...

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]