U.S. Markets open in 7 hrs 10 mins

Earnings Highlights and Review: Deere Reported a Robust Q2 Results; Topped Market Forecasts

Research Desk Line-up: Columbus McKinnon Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 8, 2017 / Thursday June 08 2017 Pro-Trader Daily publishes post-earnings coverage on Deere & Co. (NYSE: DE) following the Company's disclosure of its financial results for the second quarter fiscal 2017 (Q2 FY17) on May 19, 2017, the Moline, Illinois-based Company's worldwide net sales and net income grew 5% y-o-y and net income surged 62% y-o-y; outperforming market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:


Get more of our free earnings reports coverage from other constituents of the Farm & Construction Machinery industry. Pro-TD has currently selected Columbus McKinnon Corporation (NASDAQ: CMCO) for due-diligence and potential coverage as the Company announced on May 31, 2017, its financial results for Q4 FY17, which ended on March 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on Columbus McKinnon when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on DE; also brushing on CMCO. With the links below you can directly download the report of your stock of interest free of charge at:



Earnings Reviewed

During Q2 FY17, Deere's total net sales and revenues rose to $8.29 billion from $7.88 billion recorded at the end of Q2 FY16. The Company's net sales also increased to $7.26 billion in Q2 FY17 from $7.11 billion in Q2 FY16. Meanwhile, the quarterly net sales numbers topped market expectations of $7.24 billion. The Company's quarterly sales included price realization of 2%, while foreign exchange rate did not have any material translation effect on net sales. Equipment net sales in the United States and Canada decreased 5% y-o-y; whereas, outside the US and Canada, net sales increased 14% y-o-y.

For the three months ended on April 30, 2017, the Company incurred total costs and expenses of $7.12 billion compared to $7.14 billion in the prior year's same quarter. The Company reported income of consolidated group before income taxes of $1.17 billion for Q2 FY17 versus $733.3 million in Q2 FY16.

The agricultural equipment manufacturer's net income attributable to Deere surged to $802.4 million, or $2.49 per diluted share, in Q2 FY17, from $495.4 million, or $1.56 per diluted share, in the year ago corresponding quarter. Meanwhile, Wall Street had expected the Company to report net income of $1.70 per share in the year ago same quarter.

Segment Performance

The Agriculture and Turf segment reported 1% y-o-y revenue growth during Q2 FY17, which stood at $5.79 billion. The segment's operating profit surged to $1.00 billion in Q2 FY17 from $614 million in Q2 FY16.

In Q2 FY16, Construction and Forestry segment's revenues rose 7% to $1.47 billion from $1.37 billion in the prior year's same quarter. The segment's operating profit also increased to $108 million in Q2 FY17 from $74 million of the segment's revenues in Q2 FY16.

During Q2 FY17, Financial Services segment contributed $716 million to total net sales and revenues, rising 10% from $651 million in the last year's comparable period. Meanwhile, the segment's operating profit came in flat during Q2 FY17 and stood at $160 million.

Cash Flow and Balance Sheet

In the first six months of FY17, Deere used $175.0 million as net cash in its operating activities compared to net cash used for operating activities $312.4 million in the prior year's comparable period. As of April 30, 2017, the Company had cash and cash equivalents balance of $4.53 billion compared to $4.13 billion, at the close of books on May 01, 2016. Furthermore, the Company's long-term borrowings as on April 30, 2017, was $23.25 billion compared to $24.59 billion as on May 01, 2016.


In a separate press release on May 31, 2017, Deere's Board of Directors declared a regular quarterly dividend of $0.60 per share on common stock, payable on August 01, 2017, to stockholders of record on June 30, 2017


In its guidance for full-year FY17, the Company expects Agriculture and Turf equipment worldwide sales to increase by about 8%. Construction & Forestry's worldwide sales for FY17 are forecasted to be up about 13%; whereas, full-year FY17 earnings forecasts were raised to $2 billion, with sales growth of 9%.

Stock Performance

At the closing bell, on Wednesday, June 07, 2017, Deere's stock rose slightly by 0.19%, ending the trading session at $125.29. A total volume of 2.14 million shares have exchanged hands. The Company's stock price soared 13.42% in the last three months, 23.69% in the past six months, and 43.50% in the previous twelve months. Moreover, the stock rallied 21.59% since the start of the year. The stock is trading at a PE ratio of 27.12 and has a dividend yield of 1.92%. The stock currently has a market cap of $39.99 billion.


Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.


The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.


PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.


This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.


For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily