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Jul 31, 2022
Deere Q3 2022 Earnings Report
Net income and sales increased, driven by higher production rates despite supply-chain pressures.
Key Takeaways
Deere & Company reported strong third-quarter results with net income reaching $1.884 billion, or $6.16 per share, compared to $1.667 billion, or $5.32 per share, in the same quarter last year. Net sales increased by 25% and full-year earnings outlook revised to $7.0 - $7.2 billion.
Third-quarter net sales rose 25%, bolstered by higher rates of production, despite continuing supply-chain pressures.
Full-year earnings outlook revised to range of $7.0 – $7.2 billion.
Strong order books and positive customer fundamentals to drive demand in 2023.
Results reflected higher costs and production inefficiencies driven by the difficult supply-chain situation.
Revenue by Segment
Forward Guidance
Deere & Company forecasts net income attributable to be in the range of $7.0 billion to $7.2 billion for fiscal year 2022.
Positive Outlook
- Favorable conditions are expected to continue into 2023.
- Strong response to early-order programs.
- Working closely with factories and suppliers to meet higher levels of customer demand next year.
- Company’s smart industrial strategy and leap ambitions will continue unlocking new value for customers.
- Deere’s advanced technologies and solutions.
Challenges Ahead
- Rising costs for materials used in production.
- Slower growth or recession.
- Higher interest rates and currency fluctuations could adversely affect the U.S. dollar and customer confidence.
- Customer access to capital and overall demand for our products.
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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