Deere reports Q4 earnings beat, revenue tops estimates

Investing.com -- Deere & Company reported fourth-quarter earnings that exceeded analyst expectations, despite facing significant market challenges. The agricultural and construction equipment manufacturer saw its stock edge up 0.3% following the announcement.

For the quarter ended October 27, 2024, Deere reported net income of $1.245 billion, or $4.55 per share, surpassing the analyst estimate of $3.89 per share. Revenue for the quarter came in at $11.14 billion, topping the consensus estimate of $9.23 billion. However, both figures represent substantial YoY declines, with net income down 47% and worldwide net sales and revenues decreasing 28% compared to the same quarter last year.

The company's Production & Precision Agriculture segment saw the steepest decline, with net sales dropping 38% YoY to $4.305 billion. The Small Agriculture & Turf and Construction & Forestry segments also experienced significant decreases, with sales down 25% and 29% respectively.

John May, chairman and CEO of Deere & Company (NYSE:DE ), commented on the results: "Amid significant market challenges this year, we proactively adjusted our business operations to better align with the current environment."

Looking ahead, Deere provided guidance for fiscal 2025, projecting net income attributable to the company to be in the range of $5.0 billion to $5.5 billion. This outlook reflects ongoing headwinds across the company's markets but also highlights improved structural performance.

The company expects U.S. and Canada large agriculture equipment sales to be down approximately 30% in fiscal 2025, while small agriculture and turf equipment sales are projected to decline about 10%. Construction equipment sales in the same region are forecasted to decrease by around 10%.

Despite the challenges, May emphasized the company's commitment to future investments, stating, "We remain committed to making meaningful investments in our future while deepening our relationships with customers."

Source: Investing.com