NYSE$DE

Deere & Co · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Deere's first-quarter net income more than doubled, driven by a 23% increase in net sales, reflecting the successful execution of its new operating strategy.

Deere & Company reported a strong start to 2021, with net income reaching $1.224 billion for the first quarter, a significant increase from $517 million in the same period last year. This performance was supported by a 19% increase in worldwide net sales and revenues, totaling $9.112 billion.

  • First-quarter net income more than doubled due to a 23% gain in net sales, showcasing the successful implementation of the new operating strategy.
  • Improved conditions in the agricultural and construction sectors are setting the stage for a year of robust performance.
  • The company's smart industrial operating strategy is significantly impacting results, aiding customer profitability and sustainability.
  • Full-year earnings forecast has been increased to a range of $4.6 to $5.0 billion.

Headline financials

Total Revenue

$9.11B

Previous: $7.63B+19.4%
EPS (adj)

$3.87

Previous: $1.63+137.4%
Small Ag & Turf margin

0.2%

No prior period
Construction & Forestry margin

0.1%

Previous: 4.5%-97.6%
Capital Expenditures

-$154M

Previous: -$271M+43.2%
Free Cash Flow

-$11M

Previous: -$779M+98.6%
Net Income

$1.22B

Previous: $517M+136.8%
Operating Income

$1.64B

Previous: $645M+154.0%
Gross Profit

$9.11B

Previous: $7.62B+19.6%
Cash & Equivalents

$6.96B

Previous: $3.6B+93.3%
Total Assets

$75.5B

Previous: $71.8B+5.1%
Stock-Based Comp

$15M

Previous: $19M-21.1%

Revenue & EPS history

Deere · Revenue · Quarterly

$9.11B

Q1 2021+19.4%vs Q1 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Deere · $8.94B total across 4 segments · Q1 2021

  • Production & Precision Ag
    $3.07B-31.6%
  • Small Ag & Turf
    $2.52B
  • Construction & Forestry
    $2.47B+20.7%
  • Financial Services
    $884M

Forward guidance

Net income attributable to Deere & Company for fiscal 2021 is forecast to be in a range of $4.6 billion to $5.0 billion.

Tailwinds

  • Full-year 2021 results are expected to benefit from income earned from a higher average portfolio.
  • Full-year 2021 results are expected to benefit from lower losses on lease residual values.
  • Full-year 2021 results are expected to benefit from favorable financing spreads.
  • U.S. & Canada Large Ag is expected to be up 15 to 20%.
  • Global Forestry is expected to be up 5 to 10%.

Headwinds

  • Asia is expected to be down slightly.
  • Uncertainties related to the magnitude and duration of the COVID pandemic may significantly adversely affect the company’s business and outlook.
  • Significant changes in market liquidity conditions and changes in the company’s credit ratings could impact access to funding and funding costs.
  • A debt crisis, in Europe or elsewhere, could negatively impact currencies, global financial markets, social and political stability.
  • The withdrawal of the United Kingdom from the European Union may adversely affect business activity, political stability and economic conditions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.2%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+2.1%

Avg return

30 days after

53%

39 / 73 earnings

Positive

+14.3%

Q3 2016

Best reaction

-10.9%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+0.8%-4.1%+6.9%
Q1 2026-0.1%+8.6%-5.7%
Q4 2025-5.8%-6.0%-5.9%
Q3 2025-6.5%-4.7%-8.4%
Q2 2025+3.6%+5.8%+2.4%
Q1 2025-2.2%+5.2%+0.2%
Q4 2024+10.3%+13.8%+6.8%
Q3 2024+7.6%+6.1%+12.4%
Q2 2024-4.1%-6.6%-8.7%
Q1 2024-6.3%-7.1%-0.4%
Q4 2023-3.3%-5.3%+3.7%
Q3 2023-6.8%-5.9%-1.7%
Q2 2023-2.7%-4.4%+10.0%
Q1 2023+6.0%+5.8%-4.3%
Q4 2022+6.0%+5.9%+4.9%
Q3 2022+0.4%+3.6%-3.7%
Q2 2022-8.0%-5.9%-11.5%
Q1 2022-7.0%-11.3%+8.6%
Q4 2021+2.9%-0.3%-0.0%
Q3 2021+1.1%+4.8%-2.8%
Q2 2021+1.2%+0.7%-7.4%
Q1 2021+12.4%+15.1%+24.1%
Q4 2020+0.2%+0.0%+2.9%
Q3 2020+7.5%+10.4%+16.2%
Q2 2020+3.7%+7.4%+8.4%
Q1 2020+3.6%+0.7%-32.7%
Q4 2019-4.9%-6.4%-0.5%
Q3 2019+6.0%+7.8%+15.1%
Q2 2019-7.3%-4.9%+3.8%
Q1 2019-3.2%-1.6%-2.6%
Q4 2018+3.1%+7.5%+3.2%
Q3 2018+2.3%+3.8%+7.6%
Q2 2018+7.8%+6.7%+1.3%
Q1 2018-1.2%-2.8%-1.8%
Q4 2017+4.5%+6.9%+13.1%
Q3 2017-6.0%-6.1%-4.0%
Q2 2017+8.0%+9.0%+13.5%
Q1 2017+0.4%+0.4%+1.2%
Q4 2016+12.9%+10.5%+12.1%
Q3 2016+14.3%+13.6%+6.5%
Q2 2016-5.3%-2.1%+4.6%
Q1 2016-2.4%
Q4 2015+3.6%
Q3 2015-10.9%
Q2 2015+4.9%
Q1 2015-0.8%
Q4 2014-1.3%
Q3 2014-1.8%
Q2 2014-2.6%
Q1 2014-1.8%
Q4 2013+1.3%
Q3 2013+0.5%
Q2 2013-4.7%
Q1 2013-3.6%
Q4 2012-2.3%
Q3 2012-5.8%
Q2 2012+0.5%
Q1 2012-0.6%
Q4 2011+4.1%
Q3 2011-3.5%
Q2 2011+1.3%
Q1 2011+4.6%
Q4 2010+0.4%
Q3 2010+0.4%
Q2 2010-3.9%
Q1 2009+1.6%
Q1 2010+2.8%
Q4 2009+0.6%
Q2 2009+0.6%
Q4 2007+0.6%
Q3 2009-3.3%
Q4 2008-3.3%
Q3 2008-3.3%

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