https://assets.capyfin.com/instruments/678fdc13234e27009c5d5822.png avatar
Deere
🇺🇸 NYSE:DE
View Company
OverviewEarningsDividends
•
Jan 31, 2021

Deere Q1 2021 Earnings Report

Deere's first-quarter net income more than doubled, driven by a 23% increase in net sales, reflecting the successful execution of its new operating strategy.

Key Takeaways

Deere & Company reported a strong start to 2021, with net income reaching $1.224 billion for the first quarter, a significant increase from $517 million in the same period last year. This performance was supported by a 19% increase in worldwide net sales and revenues, totaling $9.112 billion.

First-quarter net income more than doubled due to a 23% gain in net sales, showcasing the successful implementation of the new operating strategy.

Improved conditions in the agricultural and construction sectors are setting the stage for a year of robust performance.

The company's smart industrial operating strategy is significantly impacting results, aiding customer profitability and sustainability.

Full-year earnings forecast has been increased to a range of $4.6 to $5.0 billion.

Total Revenue
$8.05B
Previous year: $6.53B
+23.3%
EPS
$3.87
Previous year: $1.63
+137.4%
Operating Margin
0.21%
Previous year: 8.3%
-97.5%
Construction Operating Margin
0.11%
Previous year: 4.5%
-97.6%
Gross Profit
$3.08B
Previous year: $2.35B
+31.1%
Cash and Equivalents
$6.96B
Previous year: $3.6B
+93.3%
Free Cash Flow
-$11M
Previous year: -$779M
-98.6%
Total Assets
$75.5B
Previous year: $71.8B
+5.1%

Deere

Deere

Deere Revenue by Segment

Forward Guidance

Net income attributable to Deere & Company for fiscal 2021 is forecast to be in a range of $4.6 billion to $5.0 billion.

Positive Outlook

  • Full-year 2021 results are expected to benefit from income earned from a higher average portfolio.
  • Full-year 2021 results are expected to benefit from lower losses on lease residual values.
  • Full-year 2021 results are expected to benefit from favorable financing spreads.
  • U.S. & Canada Large Ag is expected to be up 15 to 20%.
  • Global Forestry is expected to be up 5 to 10%.

Challenges Ahead

  • Asia is expected to be down slightly.
  • Uncertainties related to the magnitude and duration of the COVID pandemic may significantly adversely affect the company’s business and outlook.
  • Significant changes in market liquidity conditions and changes in the company’s credit ratings could impact access to funding and funding costs.
  • A debt crisis, in Europe or elsewhere, could negatively impact currencies, global financial markets, social and political stability.
  • The withdrawal of the United Kingdom from the European Union may adversely affect business activity, political stability and economic conditions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Deere