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Nov 01, 2020

Deere Q4 2020 Earnings Report

Deere reported a rise in net income for Q4 2020, aided by strong execution and disciplined cost management.

Key Takeaways

Deere & Company reported net income of $757 million for the fourth quarter ended November 1, 2020, or $2.39 per share. Worldwide net sales and revenues decreased 2 percent, to $9.731 billion, for the fourth quarter of 2020.

Fourth-quarter net income rises 5% aided by strong execution and disciplined cost management.

Improving fundamentals in agricultural sector setting stage for stronger demand in year ahead.

Earnings for 2021 forecast to be $3.6 to $4.0 billion.

Deere expects to benefit from improving conditions in the farm economy and stabilization in construction and forestry markets.

Total Revenue
$8.66B
Previous year: $8.7B
-0.5%
EPS
$2.39
Previous year: $2.14
+11.7%
Operating Margin
13.9%
Previous year: 9.2%
+51.1%
Gross Profit
$3.06B
Previous year: $2.92B
+4.5%
Cash and Equivalents
$7.07B
Previous year: $3.86B
+83.2%
Free Cash Flow
$3.2B
Previous year: $2.64B
+21.0%
Total Assets
$75.1B
Previous year: $73B
+2.8%

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 $3.6 billion to $4.0 billion.

Positive Outlook

  • Deere expects to benefit from improving conditions in the farm economy
  • Deere expects stabilization in construction and forestry markets
  • Higher crop prices are leading to renewed optimism in the agricultural sector
  • Improving fundamentals are improving demand for farm equipment
  • Deere is looking forward to realizing the benefits of our smart industrial operating strategy

Revenue & Expenses

Visualization of income flow from segment revenue to net income