“Deere is looking forward to another strong year in 2023 based on positive farm fundamentals and fleet dynamics as well as increased investment in infrastructure,” said CEO John May.
Deer and Co (From) – Get a free report Fourth-quarter earnings posted stronger-than-expected Wednesday, delivering a solid near-term outlook, as the heavy equipment maker continues to benefit from higher agricultural demand and firm prices.
Earnings for the three months ending in October, the group’s fourth fiscal quarter, came in at $7.44 per share, up 80% from the same period last year, and ahead of the Street’s forecast of $7.11 per share, Dear said. Deere said the group’s worldwide sales rose 37% from a year ago to $15.54 billion, sharply beating analyst expectations of $13.39 billion.
Looking at the end of fiscal 2022, Dear said it sees net income of between $8 billion and $8.5 billion, down from its previous forecast of $7 billion and $7.4 billion.
“Deere’s strong performance in the fourth quarter and full year is a tribute to our dedicated team of employees, dealers and suppliers around the world,” said CEO John May.
“Deere is looking forward to another strong year in 2023 based on positive farm fundamentals and fleet dynamics as well as increased investment in infrastructure,” added Mayo. “These factors are expected to support healthy demand for our equipment. At the same time, we have confidence in our smart industrial operating model and our ability to deliver solutions that help our customers be more profitable, productive and sustainable.”
Shares of Deere are up 3.23% in pre-market trading immediately after the earnings release to indicate an opening bell price of $430.00 per share.
Late last month, Deere’s biggest competitor was the caterpillar (cat) – Get a free report Supported by better-than-expected third-quarter earnings thanks to price increases and growing demand for industrial equipment from the energy and mining sectors.
Caterpillar said adjusted earnings for the three months ending in September were held at $3.95 per share, up nearly 50% from the year-ago period and ahead of Street expectations of $3.16 per share. Caterpillar said the group’s revenue rose 21% to $15 billion, a number that also beat analysts’ estimates of $14.3 billion.
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