Deere's stock falls as the full-year outlook suggests the worst of the agriculture cycle isn't over yet. ...

Core Insights - Deere reported increased sales in its fiscal fourth quarter, indicating a positive trend in the agricultural sector [1] - Despite the sales growth, the company provided a pessimistic outlook for the current fiscal year [1] Summary by Category Sales Performance - The company experienced higher sales in its fiscal fourth quarter, reflecting improvements in agricultural trends [1] Forecast - Deere issued a downbeat forecast for the upcoming year, suggesting potential challenges ahead despite recent sales growth [1]

Core Insights - Deere & Company reported a net income of $1.065 billion for Q4 2025, down 14% from $1.245 billion in Q4 2024, with earnings per share decreasing from $4.55 to $3.93 [1][2][10] - For the fiscal year 2025, net income was $5.027 billion, a 29% decline from $7.100 billion in fiscal 2024 [1][2][10] - The company anticipates fiscal 2026 net income to range between $4.00 billion and $4.75 billion [4][10] Financial Performance - Worldwide net sales and revenues increased by 11% to $12.394 billion in Q4 2025, but decreased by 12% to $45.684 billion for the full year [2][10] - Net sales for Q4 2025 were $10.579 billion, compared to $9.275 billion in Q4 2024, while full-year net sales were $38.917 billion, down from $44.759 billion [2][10] - Operating profit for Q4 2025 was $1.351 billion, a 7% decrease from $1.450 billion in Q4 2024, with full-year operating profit down 33% to $6.020 billion [2][10] Segment Performance - Production & Precision Agriculture segment saw Q4 net sales of $4.740 billion, up 10% from $4.305 billion in Q4 2024, but operating profit decreased by 8% to $604 million [6][17] - Small Agriculture & Turf segment reported Q4 net sales of $2.457 billion, a 7% increase, but operating profit plummeted 89% to $25 million [7][17] - Construction & Forestry segment experienced a 27% increase in Q4 net sales to $3.382 billion, with operating profit rising 6% to $348 million [8][17] Market Outlook - The company expects 2026 to mark the bottom of the large agriculture cycle, with ongoing margin pressures from tariffs and challenges in the large agriculture sector [5][10] - Forecasts for 2026 indicate a decline of 15% to 20% in large agriculture, while small agriculture and turf are expected to remain flat to up 5% [11][10] - Construction equipment sales in the U.S. and Canada are projected to be flat to up 5% [11][10]

Financial Performance - Deere & Company reported net income of $1.065 billion for Q4 2025, a decrease of 14% from $1.245 billion in Q4 2024, with earnings per share of $3.93 compared to $4.55[1][6] - Total net sales and revenues for Q4 2025 increased by 11% to $12.394 billion, while full-year revenues decreased by 12% to $45.684 billion[2][6] - The company forecasts net income for fiscal 2026 to be between $4.00 billion and $4.75 billion[4][5] - Deere's operating profit for the full year 2025 was $6.020 billion, a decline of 33% from $9.039 billion in 2024[22] - Total net income attributable to Deere & Company for the year ended November 2, 2025, was $5,027 million, down 29.9% from $7,100 million in 2024[25] - The total income after income taxes for the three months ended November 2, 2025, was $1,070 million, compared to $1,270 million in the same period of 2024[45] - The company reported a net income attributable to Deere & Company of $1,065 million for the three months ended November 2, 2025, down from $1,245 million in the same period of 2024[45] - Net sales for Deere & Company decreased to $38,917 million in 2025 from $44,759 million in 2024, representing a decline of approximately 13.2%[47] - Total income after income taxes fell to $4,998 million in 2025, down from $7,112 million in 2024, a decrease of about 29.6%[47] - The net income attributable to Deere & Company was $5,027 million in 2025, down from $7,100 million in 2024, a decrease of about 29.2%[47] - The company reported a net income of $4,998 million in 2025, down from $7,088 million in 2024, representing a decrease of approximately 29.4%[52] Sales and Revenue Breakdown - Production & Precision Agriculture net sales increased by 10% to $4.740 billion in Q4 2025, but operating profit decreased by 8% to $604 million[7][22] - Small Agriculture & Turf net sales rose by 7% to $2.457 billion, but operating profit plummeted by 89% to $25 million due to higher tariffs and production costs[9][22] - Construction & Forestry net sales surged by 27% to $3.382 billion, with operating profit increasing by 6% to $348 million[12][22] - Net sales for the three months ended November 2, 2025, were $10,579 million, a 14.0% increase from $9,275 million in the same period of 2024[25] - Research and development expenses increased to $681 million for the three months ended November 2, 2025, compared to $626 million in the same period of 2024, reflecting a 8.8% rise[25] Assets and Liabilities - Total assets as of November 2, 2025, were $105,996 million, a decrease from $107,320 million as of October 27, 2024[27] - The company reported a total liabilities figure of $79,989 million as of November 2, 2025, down from $84,395 million in the previous year[27] - Total assets decreased to $105,996 million in 2025 from $107,320 million in 2024, a reduction of approximately 1.2%[50] - Total liabilities decreased to $79,989 million in 2025 from $84,395 million in 2024, reflecting a decline of about 5.2%[50] Cash Flow and Investments - Cash flows from operating activities for the year ended November 2, 2025, were $7,459 million, a decrease from $9,231 million in 2024[29] - Cash and cash equivalents increased to $8,276 million in 2025 from $7,324 million in 2024, an increase of approximately 13.0%[50] - Net cash provided by operating activities decreased to $7,459 million in 2025 from $9,231 million in 2024, a decline of approximately 19.2%[52] - Total cash flows from investing activities showed a net outflow of $2,057 million in 2025 compared to an outflow of $6,464 million in 2024, indicating an improvement in cash management[52] - Cash, cash equivalents, and restricted cash at the end of 2025 totaled $8,533 million, up from $7,633 million at the end of 2024, reflecting a year-over-year increase of 11.8%[52] Operational Challenges and Strategic Moves - The company faces ongoing margin pressures from tariffs and challenges in the large agriculture sector, but remains committed to inventory management and cost control[5][19] - The company anticipates a recovery in small agriculture and construction sectors, while large agriculture remains subdued[5][16] - The company acquired several small-scale businesses in 2025 for a total consideration of $115 million, aimed at enhancing technology offerings in various segments[31] - Employee-separation programs implemented in Q3 2024 resulted in pretax expenses of $152 million for the fiscal year, with significant costs across various segments[40] Other Financial Metrics - Basic earnings per share for the three months ended November 2, 2025, were $3.94, compared to $4.57 in the same period of 2024, reflecting a 13.8% decline[25] - Dividends declared for the year ended November 2, 2025, were $6.48 per share, an increase from $5.88 in 2024[25] - Interest expense decreased to $3,170 million in 2025 from $3,348 million in 2024, a reduction of approximately 5.3%[47] - The company reported a total of $1,809 million in other receivables in 2025, down from $2,193 million in 2024, a decrease of about 17.5%[50] - The equity in income of unconsolidated affiliates improved to $17 million in 2025 from a loss of $24 million in 2024[47] - The provision for credit losses increased to $1,368 million in 2025 from $250 million in 2024, a significant rise of 447.2%[52] - Depreciation and amortization expenses were $1,082 million in 2025, compared to $1,040 million in 2024, reflecting a slight increase of 4.0%[52] - The company experienced a decrease in accounts payable and accrued expenses, which fell to $(1,040) million in 2025 from $(617) million in 2024[52] - The total proceeds from borrowings issued (original maturities greater than three months) were $10,792 million in 2025, a decrease from $17,937 million in 2024, indicating a reduction of 39.5%[52] - The company repurchased common stock amounting to $1,138 million in 2025, down from $4,007 million in 2024, a decrease of 71.6%[52] - The effect of exchange rate changes on cash and cash equivalents resulted in a positive adjustment of $77 million in 2025, compared to a negative adjustment of $(37) million in 2024[52]

Deere & Company (NYSE:DE) will release earnings results for the fourth quarter, before the opening bell on Wednesday, Nov. 26.Analysts expect the Moline, Illinois-based company to report quarterly earnings of $3.83 per share, down from $4.55 per share in the year-ago period. The consensus estimate for Deere's quarterly revenue is $9.81 billion. Benzinga Pro data shows $9.28 billion in quarterly revenue a year ago.The company has beaten analyst revenue estimates for more than 10 straight quarters.Shares of D ...

Core Insights - Deere & Company is a significant player in the manufacturing and distribution of equipment for agriculture, construction, and forestry sectors, operating through four main segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services [1] Price Target Adjustments - The consensus price target for Deere has declined over the past year, with the recent average at $543, down from $562.33 in the previous quarter, indicating a more cautious outlook from analysts [2][6] - Analyst Mircea Dobre from Robert W. Baird has set a price target of $487 for Deere, reflecting concerns over cost pressures and slipping earnings estimates [3][6] Upcoming Earnings Report - Deere is preparing to announce its fourth-quarter earnings amidst challenges, with a history of surpassing earnings expectations, but current conditions may complicate this trend [4] - The upcoming earnings report is highly anticipated as it will provide insights into how the company is managing current challenges compared to its competitor, Caterpillar, which is experiencing revenue growth [5][6]

Core Insights - Deere & Company is a prominent manufacturer in the agricultural, construction, and forestry machinery sectors, known for its green and yellow equipment, and is preparing for its quarterly earnings release on November 26, 2025 [1] Financial Performance - Analysts project Deere's earnings per share (EPS) at $3.96, reflecting a year-over-year decrease of 12.97%, while net sales are expected to reach $9.99 billion, indicating a 7.69% increase from the previous year [2][6] - The company's stock closed at $487.24, marking a 2.29% increase from the previous day, and has risen by 1.47% over the past month, outperforming major market indices [3][6] Valuation Metrics - Deere's price-to-earnings (P/E) ratio is approximately 25.33, and the price-to-sales ratio is about 3.04, indicating the market's valuation of the company's earnings and sales [4] - The enterprise value to sales ratio stands at around 4.37, providing insight into the company's valuation relative to its revenue [4] Financial Health - The debt-to-equity ratio is approximately 2.65, highlighting the proportion of debt used to finance assets, while the current ratio of around 2.31 suggests a strong ability to cover short-term liabilities with short-term assets [5]

Core Insights - Dell Technologies Inc. is expected to report earnings on November 25, 2025, with an anticipated EPS of $2.48 and revenue of approximately $27.29 billion [1][6] Financial Performance - The expected revenue range for Dell in the third quarter is between $26.5 billion and $27.5 billion, with a midpoint of $27 billion, reflecting an 11% increase from the previous year [3] - The Zacks Consensus Estimate aligns with Wall Street's projections, suggesting revenue of $27.27 billion and an EPS of $2.48, indicating a growth of 11.93% from the same quarter last year [3] - Dell's market valuation includes a price-to-earnings (P/E) ratio of 17.68, a price-to-sales ratio of 0.81, and an enterprise value to sales ratio of 1.02 [5] - The enterprise value to operating cash flow ratio is 13.76, while the debt-to-equity ratio is notably negative at -10.37, indicating a higher level of debt compared to equity [5][6] - The current ratio of 0.83 suggests that Dell's current assets are not sufficient to cover its current liabilities [5] Market Dynamics - Dell's performance is expected to be driven by strong demand for AI-optimized servers and robust expectations for its Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) [4][6] - The company is benefiting from an expanding partner base and advancements in AI platforms, which are anticipated to enhance its momentum in the third quarter [4]

Coming up: Thanksgiving holiday, retail sales, earnings from John Deere, Dell, Alibaba, Applied Digital, and Chinese EV makers. https://t.co/h30znhvJNe ...

Core Insights - Deere & Company (DE) is set to report its fourth-quarter fiscal 2025 results on November 26, with earnings estimates showing a 12.9% decline year-over-year, while revenue estimates indicate a 7.7% increase [1][5] Earnings Estimates - The Zacks Consensus Estimate for Deere's earnings has decreased by 0.3% over the past 60 days to $3.96 per share, reflecting a downward trend [1][2] - The consensus estimate for revenues is projected at $9.99 billion, which represents a year-over-year increase of 7.7% [1] Earnings Surprise History - Deere has consistently beaten the Zacks Consensus Estimates in the last four quarters, with an average surprise of 9.7% [2][3] Earnings Prediction Model - The current model does not predict an earnings beat for Deere, with an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [4] Segment Performance Expectations - The Production & Precision Agriculture segment is expected to generate revenues of $4.27 billion, a decrease of 0.8% year-over-year, with an operating profit of $714 million, up 8.6% from the previous year [9] - The Small Agriculture & Turf segment's revenues are estimated at $2.11 billion, reflecting an 8.6% decline, with an operating profit of $124 million, down 46.9% year-over-year [10] - The Construction & Forestry segment is projected to have sales of $3.29 billion, indicating a 23.7% increase, but with an operating profit expected to decline by 2.7% to $319 million [11] - The Financial Services segment's revenues are estimated at $1.55 billion, a 2% increase, with an operating profit projected at $218 million, down from $231 million in the prior year [12] Market Performance - Deere's stock has increased by 10.4% over the past year, outperforming the industry growth of 5.8% [13] Industry Context - Deere is facing challenges due to weak farmer spending amid low commodity prices, which is expected to impact its fiscal fourth-quarter performance [7] - High production and administrative expenses are likely to affect the company's margins, although favorable price realization may mitigate some of these challenges [8]