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Deere (DE) Reports Q2 Earnings: What Key Metrics Have to Say

For the quarter ended April 2023, Deere (DE) reported revenue of $16.08 billion, up 33.6% over the same period last year. EPS came in at $9.65, compared to $6.81 in the year-ago quarter.

The reported revenue represents a surprise of +8.32% over the Zacks Consensus Estimate of $14.84 billion. With the consensus EPS estimate being $8.57, the EPS surprise was +12.60%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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Here is how Deere performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net Sales and Revenues- Agriculture and Turf (Production & precision ag net sales + Small ag & turf net sales): $11.97 billion versus $11.06 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +37.8% change.

  • Net Sales and Revenues- Construction & forestry net sales: $4.11 billion versus the six-analyst average estimate of $3.73 billion. The reported number represents a year-over-year change of +22.9%.

  • Net Sales and Revenues- Production & precision ag net sales: $7.82 billion versus the six-analyst average estimate of $7.33 billion. The reported number represents a year-over-year change of +52.9%.

  • Net Sales and Revenues- Equipment Operations- Net sales: $16.08 billion compared to the $14.79 billion average estimate based on six analysts. The reported number represents a change of +33.6% year over year.

  • Net Sales and Revenues- Small ag & turf net sales: $4.15 billion versus the six-analyst average estimate of $3.73 billion. The reported number represents a year-over-year change of +16.1%.

  • Net Sales and Revenues- Financial services revenues: $1.11 billion versus the four-analyst average estimate of $1.04 billion. The reported number represents a year-over-year change of +28.1%.

  • Net Sales and Revenues- Other revenues: $201 million versus $265.99 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -57.4% change.

  • Net Sales and Revenues- Net sales: $16.08 billion compared to the $14.70 billion average estimate based on three analysts.

  • Operating profit- Agriculture and turf (Production & precision ag + Small ag & turf): $3.02 billion versus $2.42 billion estimated by six analysts on average.

  • Operating profit- Construction & forestry: $838 million versus $682.52 million estimated by six analysts on average.

  • Operating profit- Small ag & turf: $849 million versus $566.88 million estimated by five analysts on average.

  • Operating Profit- Financial services: $41 million versus $272.58 million estimated by five analysts on average.

View all Key Company Metrics for Deere here>>>

Shares of Deere have returned -5.1% over the past month versus the Zacks S&P 500 composite's +1.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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