NYSE$DE

Deere & Co · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Net income and sales increased, driven by higher production rates despite supply-chain pressures.

Deere & Company reported strong third-quarter results with net income reaching $1.884 billion, or $6.16 per share, compared to $1.667 billion, or $5.32 per share, in the same quarter last year. Net sales increased by 25% and full-year earnings outlook revised to $7.0 - $7.2 billion.

  • Third-quarter net sales rose 25%, bolstered by higher rates of production, despite continuing supply-chain pressures.
  • Full-year earnings outlook revised to range of $7.0 – $7.2 billion.
  • Strong order books and positive customer fundamentals to drive demand in 2023.
  • Results reflected higher costs and production inefficiencies driven by the difficult supply-chain situation.

Headline financials

Total Revenue

$14.1B

Previous: $11.5B+22.3%
EPS (adj)

$6.16

Previous: $5.25+17.3%
Capital Expenditures

-$596M

Previous: -$492M-21.1%
Free Cash Flow

-$178M

Previous: $3.82B-104.7%
Net Income

$1.88B

Previous: $1.67B+13.0%
Operating Income

$2.65B

Previous: $2.24B+18.0%
Gross Profit

$14B

Previous: $11.5B+22.0%
Cash & Equivalents

$4.36B

Previous: $7.52B-42.0%
Total Assets

$86.8B

Previous: $80.7B+7.6%
Stock-Based Comp

$20M

Previous: $19M+5.3%

Revenue & EPS history

Deere · Revenue · Quarterly

$14.1B

Q3 2022+22.3%vs Q3 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Deere · $13B total across 3 segments · Q3 2022

  • Production & Precision Ag
    $6.1B+43.4%
  • Small Ag & Turf
    $3.64B+15.5%
  • Construction & Forestry
    $3.27B+8.4%

Forward guidance

Deere & Company forecasts net income attributable to be in the range of $7.0 billion to $7.2 billion for fiscal year 2022.

Tailwinds

  • Favorable conditions are expected to continue into 2023.
  • Strong response to early-order programs.
  • Working closely with factories and suppliers to meet higher levels of customer demand next year.
  • Company’s smart industrial strategy and leap ambitions will continue unlocking new value for customers.
  • Deere’s advanced technologies and solutions.

Headwinds

  • Rising costs for materials used in production.
  • Slower growth or recession.
  • Higher interest rates and currency fluctuations could adversely affect the U.S. dollar and customer confidence.
  • Customer access to capital and overall demand for our products.
  • Delays or disruptions in the company’s supply chain

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 Q3 2022

Historical avgQ3 2022

+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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