Deere & Co. Earnings Cheat Sheet: Double-Digit Revenue Growth Continues

The Cheat Sheet

S&P 500 component Deere & Company reported net income above Wall Street’s expectations for the fourth quarter. Deere & Company provides products and services for agriculture, forestry, construction, landscaping, and irrigation.

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Deere & Company Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the farm and construction machinery company rose to $669.6 million ($1.62 per share) vs. $457.3 million ($1.07 per share) in the same quarter a year earlier. This marks a rise of 46.4% from the year earlier quarter.

Revenue: Rose 20.4% to $7.9 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: DE beat the mean analyst estimate of $1.44 per share. Analysts were expecting revenue of $7.84 billion.

Quoting Management: “John Deere has completed another year of exceptional achievement,” said Samuel R. Allen, chairman and chief executive officer. “Our success reflects a continued pattern of strong customer response to our innovative lines of equipment coupled with the skillful execution of business plans aimed at expanding our global competitive position.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 28.2%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 38.9% from the year earlier quarter.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the third quarter, by 6 cents in the second quarter, and by 20 cents in the first quarter.

Looking Forward: Expectations for the first quarter of the next fiscal year have not changed from $1.25. The average estimate for the fiscal year is now $6.44 per share, down from $6.46 sixty days ago.

Competitors to Watch: AGCO Corporation , Caterpillar Inc. , Arts-Way Manufacturing Co. Inc. , The Toro Company , Lindsay Corporation , Kubota Corporation , CNH Global N.V. , Alamo Group, Inc. , Manitowoc Company, Inc. , and American Soil Tech., Inc. (SOYL).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

 

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