The company sold out of large tractors in Q3 due to parts shortages.
Deere has benefited from equipment prices forced to record highs by those shortages and higher crop prices. Economic uncertainty, inflationary pressures, and supply disruptions have offset those benefits.
Equipment operations net sales were $14.35 billion compared to $10.28 billion a year ago.
Q4 EPS of $7.44 surpassed the consensus of $7.11.
In August, Deere lowered its full-year profit outlook and said it is "working closely with our factories and suppliers to meet higher levels of customer demand."
At the same time, CEO John May said, "We believe favorable conditions will continue into 2023 based on the strong response we have experienced to early-order programs."
Guidance: Deere forecasts FY23 net income of $8-$8.5 billion. "Deere is looking forward to another strong year in 2023 based on positive farm fundamentals and fleet dynamics as well as an increased investment in infrastructure," May said. "These factors are expected to support healthy demand for our equipment.
Price Action: DE shares are up 5.22% at $438.31 during the premarket session on the last check Wednesday.
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