Deere Reports Q3 Earnings: What Key Metrics Have to Say

For the quarter ended July 2024, Deere DE reported revenue of $11.39 billion, down 20.3% over the same period last year. EPS came in at $6.29, compared to $10.20 in the year-ago quarter.

The reported revenue represents a surprise of +4.73% over the Zacks Consensus Estimate of $10.87 billion. With the consensus EPS estimate being $5.80, the EPS surprise was +8.45%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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- Production & precision ag net sales

  : $5.10 billion versus $4.77 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -25.1% change.

• Net Sales and Revenues- Agriculture and Turf (Production & precision ag net sales + Small ag & turf net sales)

  : $8.15 billion compared to the $7.59 billion average estimate based on six analysts. The reported number represents a change of -22.7% year over year.

• Net Sales and Revenues- Equipment Operations- Net sales

  : $11.39 billion compared to the $10.88 billion average estimate based on six analysts. The reported number represents a change of -20.3% year over year.

• Net Sales and Revenues- Small ag & turf net sales

  : $3.05 billion compared to the $2.82 billion average estimate based on six analysts. The reported number represents a change of -18.4% year over year.

• Net Sales and Revenues- Construction & forestry net sales

  : $3.24 billion versus the six-analyst average estimate of $3.29 billion. The reported number represents a year-over-year change of -13.5%.

• Net Sales and Revenues- Other revenues

  : $276 million versus $269.37 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -4.5% change.

• Net Sales and Revenues- Financial services revenues

  : $1.49 billion compared to the $1.32 billion average estimate based on three analysts. The reported number represents a change of +21.3% year over year.

• Net Sales and Revenues- Net sales

  : $11.39 billion versus $10.71 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -20.3% change.

• Net Sales and Revenues- Financial services- Total

  : $1.67 billion versus $1.50 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +15.4% change.

• Net Sales and Revenues- Other income

  : $304 million compared to the $250.25 million average estimate based on two analysts. The reported number represents a change of +15.2% year over year.

• Net Sales and Revenues- Equipment Operations- Other income

  : $246 million versus $208.52 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +10.8% change.

• Net Sales and Revenues- Equipment Operations- Finance and interest income

  : $155 million compared to the $187.49 million average estimate based on two analysts. The reported number represents a change of -26.2% year over year.

Shares of Deere have returned -8.8% over the past month versus the Zacks S&P 500 composite's -2.9% 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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