The Deere & Company (NYSE: DE) stock price surged 3.50% after the company reported a net income of $2.860 billion for the second quarter that ended April 30, 2023, or $9.65 per share, compared with a net income of $2.098 billion, or $6.81 per share, for the quarter ended May 1, 2022.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The company’s upbeat results were driven by the sound execution of its strategy, healthy demand for farm and construction equipment and a significantly improved operating environment. Deere was unaffected by the shifting dynamics in the farming industry.
Top Broker Recommendation
- eToro Top stock trading platform with 0% commission – Read our Review
- Tickmill Regulated by the FCA – Read our Review
- Admirals (Admiral Markets) More than 4500 stocks & ETFs available – Read our Review
- Spreadex Spreadex has been around for a long time – Read our Review
- IG Top-tier regulation – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
Deere also revealed that for the first six months of the year, net income attributable to Deere & Company was $4.819 billion, or $16.18 per share, compared with $3.001 billion, or $9.72 per share, for the same period last year.
The company also raised its full-year guidance to $9.25 billion to $9.50 billion from its earlier forecast of $8.75 billion to $9.25 billion. The firm also expects to generate cash flows between $10.00 billion and $10.50 billion amid solid order books.
The impressive figures were driven by farmers' demand for new equipment and parts to repair ageing machinery. The company was largely unaffected by the falling crop commodity prices, which caused farmers to spend money upgrading their fleets.
Deere’s production and precision agriculture division retail sales were the star performers notching a 53% increase in revenue. In addition, the company’s operating profits increased 105% compared to last year due to a 20% price hike in the equipment line.
John C. May, Deere’s Chairman and CEO, said: “As shown by the company’s outstanding second-quarter results, Deere continues to benefit from favorable market conditions and an improving operating environment. We also are being helped by the sound execution of our business plans by our employees, dealers, and suppliers. They are doing an exceptional job meeting demand for our products and serving customers. Though supply-chain constraints continue to present a challenge, we are seeing further improvement.”
Deere shares will likely end the day higher due to the positive earnings result.
*This is not investment advice.
Deere stock price.
The Deere stock price surged 3.50% to $3.83, rising from Thursday’s closing price of $370.52.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.