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Oct 30, 2022

Deere Q4 2022 Earnings Report

Deere's fourth-quarter net income rose sharply due to a net sales gain of 40%, reflecting strong execution amidst supply-chain constraints.

Key Takeaways

Deere & Company reported a strong fourth quarter with net income of $2.246 billion, or $7.44 per share. Worldwide net sales and revenues increased 37% to $15.536 billion. The company's performance was driven by favorable industry fundamentals and strong demand for farm and construction equipment. For fiscal year 2022, net income attributable to Deere & Company was $7.131 billion, or $23.28 per share.

Fourth-quarter net income increased significantly due to a 40% rise in net sales.

Strong execution was demonstrated despite ongoing supply-chain limitations.

The market environment was supported by favorable industry fundamentals and sustained high demand for farm and construction equipment.

The full-year 2023 forecast projects higher sales and net income between $8.0 to $8.5 billion.

Total Revenue
$15.5B
Previous year: $11.3B
+37.2%
EPS
$7.44
Previous year: $4.12
+80.6%
Operating Margin
0.23%
Previous year: 0.17%
+40.1%
Construction Operating Margin
0.12%
Gross Profit
$4.85B
Previous year: $3.3B
+47.1%
Cash and Equivalents
$4.77B
Previous year: $8.02B
-40.5%
Free Cash Flow
$3.74B
Previous year: $3.06B
+22.5%
Total Assets
$90B
Previous year: $84.1B
+7.0%

Deere

Deere

Deere Revenue by Segment

Forward Guidance

Deere anticipates another strong year in 2023, driven by positive farm fundamentals, fleet dynamics, and increased infrastructure investment. The company forecasts net income attributable to Deere & Company for fiscal year 2023 to be in the range of $8.0 billion to $8.5 billion.

Positive Outlook

  • Positive farm fundamentals.
  • Fleet dynamics.
  • Increased investment in infrastructure.
  • Healthy demand for equipment.
  • Smart industrial operating model.

Revenue & Expenses

Visualization of income flow from segment revenue to net income