Let’s Dig Into Deere’s Quarter

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Nearly everyone is familiar with the products made by Deere & Co. (NYSE:DE) In fact, we are now in the quarter in which sales are often strongest. What you may not know is that this company is valued at nearly $100 billion and makes a massive profit. In this article, I will dig into the most recent earnings report put out by Deere & Co.


When reviewing the quarterly results, two numbers jump out. First, net income. Net income attributable to Deere & Co. was $980.7 million, or $2.65 per share, for the second quarter (which ended April 30), a year-over-year decline. In the comparable quarter last year, Deere a& Co. booked $1.084 billion, or $2.76 per share. The second number that jumps out was Deere & Co.’s income for the first six months of its fiscal 2014, which is still ahead of the pace in 2013 thanks so a solid Q1. For the first six months of 2014, net income attributable to Deere & Co. was $1.662 billion, or $4.46 per share, compared with $1.734 billion, or $4.41 per share, last year.

Sales and revenues

Of course, net income is made up of the total revenues brought in minus total expenses. It is in these numbers where some of the weakness is noted. Overall, the company is solid, but as we are all too familiar, the Street rewards growth. Deere & Co. reported that worldwide net sales and revenues decreased 9 percent, to $9.948 billion, for the second quarter and were down 4 percent, to $17.602 billion, for the first six months of 2014. Net sales of the equipment operations were $9.246 billion for the quarter and $16.195 billion for six months, compared with $10.265 billion and $17.058 billion for the same periods last year.