NYSE$DE

Deere & Co · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Deere reported strong Q2 2021 earnings driven by increased net sales and revenues, reflecting robust market conditions and broad improvements across divisions and geographies.

Deere & Company reported a net income of $1.790 billion for the second quarter ended May 2, 2021, a significant increase compared to the previous year. Worldwide net sales and revenues increased by 30 percent, reaching $12.058 billion. The company has raised its full-year earnings forecast to a range of $5.3 billion to $5.7 billion.

  • Second-quarter earnings increased due to a 34% rise in net sales, indicating strong market conditions and widespread improvement across divisions and geographies.
  • The equipment division's operating margin of 19.5% demonstrates solid execution and the impact of the company's strategy.
  • Deere is facing increased supply-chain pressures throughout the year but is actively working with suppliers to mitigate these challenges.
  • Full-year earnings forecast has been raised to a range of $5.3 to $5.7 billion, reflecting confidence in the company's performance.

Headline financials

Total Revenue

$12.1B

Previous: $9.25B+30.3%
EPS (adj)

$5.68

Previous: $2.11+169.2%
Capital Expenditures

-$320M

Previous: -$441M+27.4%
Free Cash Flow

$1.47B

Previous: $335M+337.6%
Net Income

$1.79B

Previous: $666M+168.8%
Operating Income

$2.44B

Previous: $965M+152.7%
Gross Profit

$12B

Previous: $9.15B+31.6%
Cash & Equivalents

$7.18B

Previous: $8.9B-19.3%
Total Assets

$79B

Previous: $77.3B+2.1%
Stock-Based Comp

$30M

Previous: $29M+3.4%

Revenue & EPS history

Deere · Revenue · Quarterly

$12.1B

Q2 2021+30.3%vs Q2 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Deere · $11.9B total across 4 segments · Q2 2021

  • Production & Precision Ag
    $4.53B-24.1%
  • Small Ag & Turf
    $3.39B
  • Construction & Forestry
    $3.08B+36.5%
  • Financial Services
    $892M

Forward guidance

Net income attributable to Deere & Company for fiscal 2021 is forecast to be in a range of $5.3 billion to $5.7 billion.

Headwinds

  • Deere expects to see increased supply-chain pressures through the balance of the year.

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 Q2 2021

Historical avgQ2 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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