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Deere Acquires GUSS Automation: Set to Lead Farming Innovation?
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Key Takeaways
Deere bought GUSS Automation, maker of autonomous sprayers for orchards and vineyards.
GUSS machines use GPS, LiDAR and sensors, with one operator managing eight units.
Combined with Smart Apply, Deere offers both automation and precision spraying systems.
Deere & Company (DE - Free Report) has acquired GUSS Automation, LLC, a pioneer in autonomous sprayers used in orchards and vineyards. The move underscores Deere’s commitment to accelerating innovation and delivering technologies that can cut down operator error, labor costs and material waste, which is the need of the hour.
Within seven years of its formation, GUSS Automation has already deployed 250 machines across the world, collectively covering 2.6 million acres and logging 500,000 autonomous hours.
GUSS Automation’s sprayers integrate GPS, LiDAR (Light Detection and Ranging), vehicle sensors and proprietary software that enable them to move through uneven terrain without onboard operators. A single operator can remotely oversee eight machines simultaneously, cutting down on labor costs and downtime. They apply sprays with speed and precision, lowering material wastage.
Deere had first partnered with GUSS Automation through a joint venture in fiscal 2022. The company later complemented this with the acquisition of Smart Apply, Inc., a precision spraying equipment company in fiscal 2023. Its Smart Apply Intelligent Spray Control System uses advanced sensing technology to measure foliage density and automatically adjust spray volumes. This helps to avoid over-spraying, saving up to 50% chemical and water on average. When combined, GUSS’ autonomous sprayers and Smart Apply’s intelligent system bring farmers the efficiency of an automated blast sprayer and the precision and ease of an intelligent application system.
Deere’s broader strategy is to continually expand its autonomous solutions portfolio, helping high-value crop growers confront their most pressing challenges: limited labor availability, rising input costs and the need for sustainable crop protection practices. These innovations are designed to align with customer goals while strengthening Deere’s leadership in advanced agricultural technology.
Its peers, CNH Industrial N.V (CNH - Free Report) and Komatsu (KMTUY - Free Report) are also sharpening their focus on technology-driven solutions.
CNH Industrial recently unveiled its new strategic business plan to consolidate its position as the #1 or #2 player in its major markets. CNH Industrial is leaning heavily on Artificial Intelligence (AI) capabilities to create the best user experience for customers. CNH Industrial plans to invest heavily in new product launches, updates to existing product lines and integrated digital technologies across its equipment lineup.
Komatsu’s machinery is highly durable and comes with a variety of attachments designed to improve productivity and reduce labor. Komatsu’s Smart Construction platform leverages ICT (Information and Communication Technology) to visualize operations from start to finish, aiming to ease labor shortages and boost productivity through smarter resource allocation.
DE’s Price Performance, Valuation & Estimates
DE shares have gained 12.6% so far this year compared with the industry’s 10.8% growth. In comparison, the Zacks Industrial Products sector has moved up 5.6%. The S&P 500 has gained 9.2% in the same time frame.
Image Source: Zacks Investment Research
Deere is currently trading at a forward 12-month Price/Earnings of 23.23X compared with the industry’s 21.43X. It is also higher than DE’s five-year median of 15.83X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Deere’s fiscal 2025 earnings is $18.62 per share, indicating a year-over-year fall of 27.3%. The 2026 estimate implies growth of 12.1%. Both the estimates have moved down over the past 60 days.
Image Source: Zacks Investment Research
Deere stock currently carries a Zacks Rank #4 (Sell).
Image: Bigstock
Deere Acquires GUSS Automation: Set to Lead Farming Innovation?
Key Takeaways
Deere & Company (DE - Free Report) has acquired GUSS Automation, LLC, a pioneer in autonomous sprayers used in orchards and vineyards. The move underscores Deere’s commitment to accelerating innovation and delivering technologies that can cut down operator error, labor costs and material waste, which is the need of the hour.
Within seven years of its formation, GUSS Automation has already deployed 250 machines across the world, collectively covering 2.6 million acres and logging 500,000 autonomous hours.
GUSS Automation’s sprayers integrate GPS, LiDAR (Light Detection and Ranging), vehicle sensors and proprietary software that enable them to move through uneven terrain without onboard operators. A single operator can remotely oversee eight machines simultaneously, cutting down on labor costs and downtime. They apply sprays with speed and precision, lowering material wastage.
Deere had first partnered with GUSS Automation through a joint venture in fiscal 2022. The company later complemented this with the acquisition of Smart Apply, Inc., a precision spraying equipment company in fiscal 2023. Its Smart Apply Intelligent Spray Control System uses advanced sensing technology to measure foliage density and automatically adjust spray volumes. This helps to avoid over-spraying, saving up to 50% chemical and water on average.
When combined, GUSS’ autonomous sprayers and Smart Apply’s intelligent system bring farmers the efficiency of an automated blast sprayer and the precision and ease of an intelligent application system.
Deere’s broader strategy is to continually expand its autonomous solutions portfolio, helping high-value crop growers confront their most pressing challenges: limited labor availability, rising input costs and the need for sustainable crop protection practices. These innovations are designed to align with customer goals while strengthening Deere’s leadership in advanced agricultural technology.
Its peers, CNH Industrial N.V (CNH - Free Report) and Komatsu (KMTUY - Free Report) are also sharpening their focus on technology-driven solutions.
CNH Industrial recently unveiled its new strategic business plan to consolidate its position as the #1 or #2 player in its major markets. CNH Industrial is leaning heavily on Artificial Intelligence (AI) capabilities to create the best user experience for customers. CNH Industrial plans to invest heavily in new product launches, updates to existing product lines and integrated digital technologies across its equipment lineup.
Komatsu’s machinery is highly durable and comes with a variety of attachments designed to improve productivity and reduce labor. Komatsu’s Smart Construction platform leverages ICT (Information and Communication Technology) to visualize operations from start to finish, aiming to ease labor shortages and boost productivity through smarter resource allocation.
DE’s Price Performance, Valuation & Estimates
DE shares have gained 12.6% so far this year compared with the industry’s 10.8% growth. In comparison, the Zacks Industrial Products sector has moved up 5.6%. The S&P 500 has gained 9.2% in the same time frame.
Image Source: Zacks Investment Research
Deere is currently trading at a forward 12-month Price/Earnings of 23.23X compared with the industry’s 21.43X. It is also higher than DE’s five-year median of 15.83X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Deere’s fiscal 2025 earnings is $18.62 per share, indicating a year-over-year fall of 27.3%. The 2026 estimate implies growth of 12.1%. Both the estimates have moved down over the past 60 days.
Image Source: Zacks Investment Research
Deere stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.