Deere & Company Earnings: Although This is Growing, Shareholders Not Excited

Google+ | + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

S&P 500 (NYSE:SPY) component Deere & Company (NYSE:DE) reported its results for the fourth quarter. Deere & Company provides products and services for agriculture, forestry, construction, landscaping, and irrigation.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

Deere & Company Earnings Cheat Sheet

Results: Net income for the machinery-farming rose to $687.6 million ($1.75 per share) vs. $669.6 million ($1.62 per share) in the same quarter a year earlier. This marks a rise of 2.7% from the year-earlier quarter.

Revenue: Rose 13.7% to $9.79 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Deere & Company fell short of the mean analyst estimate of $1.88 per share. Analysts were expecting revenue of $9.7 billion.

Quoting Management: “In the face of continuing global economic pressure, John Deere has completed another record year,” said Samuel R. Allen, chairman and chief executive officer. “Our success reflects positive customer response to our lines of innovative equipment coupled with extensive efforts to expand our global competitive position.”

Key Stats:

The company has now seen its net income increase for three consecutive quarters. In the third quarter, net income rose 10.6% and in the second quarter, the figure rose 16.8%.

For two quarters in a row, the company has come in under analyst estimates. In the third quarter, it missed expectations by 33 cents with net income of $1.98 versus a mean estimate of net income of $2.31 per share.

Looking Forward: Analysts have a positive outlook for the company’s performance next quarter. Over the past seven days, the average estimate for the first quarter of the next fiscal year has gone up to $1.34 a share from $1.28. Over the past sixty days, the average estimate for the fiscal year has reached $7.76 per share, a decline from $7.77.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Beer Wars: Craft Brewers Are Using This Strategy to Compete

Apple: In Case You Haven’t Noticed, We’re Destroying HP, Dell, RIM, et al

Tim Ferris: The 4-Hour Chef Controversy Displays the Future of Publishing

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business