We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Deere (DE) Earnings & Revenues Top Estimates in Q1, Up Y/Y
Read MoreHide Full Article
Deere & Company (DE - Free Report) posted first-quarter fiscal 2021 (ended Jan 31, 2021) earnings of $3.87 per share, beating the Zacks Consensus Estimate of $2.12. The reported figure also surged 137.4% from the prior-year quarter.
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $8.05 billion, increasing 23% year over year. Revenues also surpassed the Zacks Consensus Estimate of $7.08 billion. Total net sales (including financial services and others) came in at $9.11 billion, up 19% year over year.
Operational Update
Cost of sales in the reported quarter was up 14.3% year over year to $5.8 billion. Total gross profit for the reported quarter increased 54.5% year over year to $2.2 billion. Selling, administrative and general expenses slid 4.9% to $769 million from the prior-year quarter. Equipment operations reported an operating profit of $1,380 million in the quarter compared with the $466 million witnessed in the prior-year quarter. Total operating profit (including financial services) soared 154% year over year to $1,638 million in the fiscal first quarter.
The Agriculture & Turf segment’s sales were up 27% year on year to $2.51 billion, primarily driven by higher shipment volumes, price realization and the favorable effects of currency translation. Operating profit in the segment skyrocketed 203% year over year to $469 million.
Construction & Forestry sales increased 21% to $2.46 billion from the year-earlier quarter on higher shipment volumes, price realization and the favorable impact of currency translation. This segment’s operating profit jumped a whopping 188% year over year to $268 million.
Net revenues in Deere’s Financial Services division came in at $204 million in the reported quarter, up 49% year on year. The segment’s operating profit came in at $258 million, up 44% year over year.
Financial Update
Deere reported cash and cash equivalents of $6.9 billion at the end of fiscal first quarter 2021 compared with the $3.6 billion recorded in the prior-year quarter. Cash generated from operating activities were $143 million as of Jan 31, 2021 compared with cash utilization of $508 million as of Feb 2, 2020. At the end of the fiscal first quarter, long-term borrowing was roughly $33 billion, up from the $30 billion witnessed at the end of year-ago quarter.
Outlook
The company now expects net income for fiscal 2021 to lie between $4.6 billion and $5 billion, up from the prior projection of $3.6 billion and $4 billion.
Price Performance
Deere’s shares have appreciated 84.1% over the past year, outperforming the industry’s growth of 80.9%.
AGCO Corporation has a projected earnings growth rate of 11.4% for the current year. Shares of the company have soared 83% over the past year.
Crown Holdings has an estimated earnings growth rate of 12.8% for 2021. The company’s shares have gained 16.9% in a year’s time.
Avery Dennison has an expected earnings growth rate of 11.4% for the ongoing year. In the past year, the stock has gained 28.6%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Deere (DE) Earnings & Revenues Top Estimates in Q1, Up Y/Y
Deere & Company (DE - Free Report) posted first-quarter fiscal 2021 (ended Jan 31, 2021) earnings of $3.87 per share, beating the Zacks Consensus Estimate of $2.12. The reported figure also surged 137.4% from the prior-year quarter.
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $8.05 billion, increasing 23% year over year. Revenues also surpassed the Zacks Consensus Estimate of $7.08 billion. Total net sales (including financial services and others) came in at $9.11 billion, up 19% year over year.
Operational Update
Cost of sales in the reported quarter was up 14.3% year over year to $5.8 billion. Total gross profit for the reported quarter increased 54.5% year over year to $2.2 billion. Selling, administrative and general expenses slid 4.9% to $769 million from the prior-year quarter. Equipment operations reported an operating profit of $1,380 million in the quarter compared with the $466 million witnessed in the prior-year quarter. Total operating profit (including financial services) soared 154% year over year to $1,638 million in the fiscal first quarter.
Deere & Company Price, Consensus and EPS Surprise
Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote
Segment Performance
The Agriculture & Turf segment’s sales were up 27% year on year to $2.51 billion, primarily driven by higher shipment volumes, price realization and the favorable effects of currency translation. Operating profit in the segment skyrocketed 203% year over year to $469 million.
Construction & Forestry sales increased 21% to $2.46 billion from the year-earlier quarter on higher shipment volumes, price realization and the favorable impact of currency translation. This segment’s operating profit jumped a whopping 188% year over year to $268 million.
Net revenues in Deere’s Financial Services division came in at $204 million in the reported quarter, up 49% year on year. The segment’s operating profit came in at $258 million, up 44% year over year.
Financial Update
Deere reported cash and cash equivalents of $6.9 billion at the end of fiscal first quarter 2021 compared with the $3.6 billion recorded in the prior-year quarter. Cash generated from operating activities were $143 million as of Jan 31, 2021 compared with cash utilization of $508 million as of Feb 2, 2020. At the end of the fiscal first quarter, long-term borrowing was roughly $33 billion, up from the $30 billion witnessed at the end of year-ago quarter.
Outlook
The company now expects net income for fiscal 2021 to lie between $4.6 billion and $5 billion, up from the prior projection of $3.6 billion and $4 billion.
Price Performance
Deere’s shares have appreciated 84.1% over the past year, outperforming the industry’s growth of 80.9%.
Zacks Rank & Stocks to Consider
Deere currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include AGCO Corporation (AGCO - Free Report) , Crown Holdings, Inc. (CCK - Free Report) and Avery Dennison Corporation (AVY - Free Report) , each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AGCO Corporation has a projected earnings growth rate of 11.4% for the current year. Shares of the company have soared 83% over the past year.
Crown Holdings has an estimated earnings growth rate of 12.8% for 2021. The company’s shares have gained 16.9% in a year’s time.
Avery Dennison has an expected earnings growth rate of 11.4% for the ongoing year. In the past year, the stock has gained 28.6%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>