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May 01, 2022
Deere Q2 2022 Earnings Report
Deere's performance was driven by strong demand, despite supply-chain pressures.
Key Takeaways
Deere & Company reported a 17% increase in net income for the second quarter, reaching $2.098 billion, or $6.81 per share, compared to $1.790 billion, or $5.68 per share, in the same quarter last year. Net sales rose by 9%, and full-year earnings forecast increased to $7.0 to $7.4 billion, inclusive of special items.
Quarterly earnings rose 17% due to a 9% increase in net sales.
Market conditions and industry fundamentals support a continued robust environment.
Full-year earnings forecast increased to a range of $7.0 to $7.4 billion, including special items.
Second-quarter performance reflected strong demand despite supply-chain pressures.
Revenue by Segment
Forward Guidance
Deere & Company forecasts net income attributable to be in a range of $7.0 billion to $7.4 billion for fiscal year 2022.
Positive Outlook
- Demand for farm equipment will continue benefiting from positive fundamentals.
- Smart industrial strategy focused on helping customers manage higher costs.
- Leap Ambitions are focused on helping customers manage increasingly scarce inputs.
- Integrated technologies will improve customer yields.
- Large Ag U.S. & Canada: Up ~ 20%
Challenges Ahead
- Availability concerns
- Inflationary pressures affecting customers’ input costs
- Small Ag & Turf U.S. & Canada: ~ Flat
- Asia: Down moderately
- Compact Construction Equipment U.S. & Canada: Flat to Up 5%
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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