NYSE$DE

Deere & Co · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Deere's second-quarter results were driven by sound execution, healthy demand for farm and construction equipment, and an improved operating environment.

Deere & Company reported net income of $2.860 billion for the second quarter ended April 30, 2023, or $9.65 per share, compared with net income of $2.098 billion, or $6.81 per share, for the quarter ended May 1, 2022. Worldwide net sales and revenues increased 30 percent, to $17.387 billion, for the second quarter of 2023.

  • Sound execution contributes to net sales gain of 34% and higher earnings.
  • Results benefit from healthy demand for farm and construction equipment and improved operating environment.
  • Full-year net income forecast increased to $9.25 billion to $9.50 billion with cash flow from equipment operations expected to be $10.00 billion to $10.50 billion.
  • Deere continues to benefit from favorable market conditions and an improving operating environment.

Headline financials

Total Revenue

$17.4B

Previous: $13.4B+30.0%
EPS (adj)

$9.65

Previous: $6.81+41.7%
Small Ag & Turf margin

0.2%

No prior period
Construction & Forestry margin

0.2%

No prior period
Capital Expenditures

-$584M

Previous: -$346M-68.8%
Free Cash Flow

-$731M

Previous: -$2.11B+65.3%
Net Income

$2.86B

Previous: $2.1B+36.3%
Operating Income

$3.9B

Previous: $2.67B+46.0%
Gross Profit

$17.3B

Previous: $13.3B+29.8%
Cash & Equivalents

$5.27B

Previous: $3.88B+35.8%
Total Assets

$98.3B

Previous: $84.1B+16.9%
Stock-Based Comp

$31M

Previous: $26M+19.2%

Revenue & EPS history

Deere · Revenue · Quarterly

$17.4B

Q2 2023+30%vs Q2 2022
Beat estimate in 15 of 15 quarters(100%)
ActualEstimate

Revenue by segment

Deere · $17.2B total across 4 segments · Q2 2023

  • Production & Precision Ag
    $7.82B+52.9%
  • Small Ag & Turf
    $4.15B+16.1%
  • Construction & Forestry
    $4.11B+22.9%
  • Financial Services
    $1.11B+28.1%

Forward guidance

Net income attributable to Deere & Company for fiscal 2023 is forecast to be in a range of $9.25 billion to $9.50 billion.

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 2023

Historical avgQ2 2023

+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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