Deere Shares Rise on Earnings Beat Amidst Challenges

Key Takeaways

• Deere's third-quarter earnings beat analyst estimates despite a decline in sales.
• CEO John May attributed the profit beat to cost-cutting measures.
• The company reaffirmed its annual net income outlook.

Deere & Company (DE), the agricultural and construction equipment manufacturer, reported third-quarter earnings on Thursday, August 15, 2024, that fell year-over-year but still managed to beat analyst estimates.

Revenue and Profitability

Deere's revenue for the quarter was $13.152 billion, down 17% from the same period last year. This decline was primarily due to lower demand for agricultural equipment in both the United States and Europe.

Despite the revenue decline, Deere's net income for the quarter was $1.46 billion, up 1% from the prior year. This profit beat was largely attributed to cost-cutting measures implemented by the company.

CEO Commentary

CEO John May said in a statement that the company is "pleased with our third-quarter results, which reflect the strength of our diversified portfolio and our continued focus on cost discipline." He also noted that the company is "cautiously optimistic" about the future, despite ongoing challenges in the agricultural sector.

Outlook

Deere reaffirmed its annual net income outlook of $8.0-$8.5 billion, which is slightly below the consensus analyst estimate of $8.6 billion. The company also said that it expects fourth-quarter revenue to be down 10-15% year-over-year.

Disclaimer: This article does not provide financial advice. Please consult a qualified financial advisor before making any investment decisions.