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Jan 29, 2023

Deere Q1 2023 Earnings Report

Deere's first quarter performance reflected favorable market fundamentals and healthy demand, resulting in increased net sales and net income compared to the same period last year.

Key Takeaways

Deere & Company reported a strong first quarter with net income reaching $1.959 billion, a significant increase from the previous year. Worldwide net sales and revenues also saw a substantial rise, driven by positive market fundamentals and robust demand for equipment.

Deere reported first quarter net income of $1.959 billion, or $6.55 per share.

Worldwide net sales and revenues increased 32 percent to $12.652 billion.

Net sales were $11.402 billion, compared to $8.531 billion in the previous year.

Full-year net income forecast increased to $8.75 billion to $9.25 billion.

Total Revenue
$12.7B
Previous year: $9.57B
+32.2%
EPS
$6.55
Previous year: $2.92
+124.3%
Operating Margin
23.2%
Previous year: 8.8%
+163.6%
Construction Operating Margin
19.5%
Gross Profit
$4.46B
Previous year: $2.64B
+69.3%
Cash and Equivalents
$3.98B
Previous year: $4.47B
-11.1%
Free Cash Flow
-$1.56B
Previous year: -$2.75B
-43.2%
Total Assets
$91.6B
Previous year: $79.6B
+15.1%

Deere

Deere

Deere Revenue by Segment

Forward Guidance

Deere anticipates a strong fiscal year 2023, with net income attributable to Deere & Company forecast to be in the range of $8.75 billion to $9.25 billion.

Positive Outlook

  • Positive market fundamentals
  • Low machine inventories
  • Continuation of solid execution
  • Ability to execute on leap ambitions
  • Ability to run businesses with real purpose, real technology, and real impact

Challenges Ahead

  • Changes in U.S. and international laws, regulations, and policies
  • Political, economic, and social instability of the geographies in which the company operates
  • Wars and other conflicts, including the current conflict between Russia and Ukraine, and natural disasters
  • Adverse macroeconomic conditions, including unemployment, inflation, rising interest rates, changes in consumer practices due to slower economic growth or possible recession, and liquidity constraints
  • Availability and price of raw materials, components, and whole goods

Revenue & Expenses

Visualization of income flow from segment revenue to net income