[Updated: Nov 26, 2021] Deer Revenue Update
Deere & Company recently reported revenue for the fourth quarter of 2009, which is higher than we expected. The company’s sales (equipment business) were approximately $ 10.3 billion (up 19% year-on-year), compared to an estimated $ 10.4 billion. Revenues for construction and forestry equipment increased by 14%, while revenues for agricultural and forestry equipment increased by more than 20%. This is due to higher quantities and improved price realization.Dashboard Deer’s income Provides company segment details.
Looking at revenue, the company reported revenue of $ 4.12 per share, compared to $ 2.39 in the year-ago quarter. Revenues comfortably exceeded the $ 3.98 / share forecast and the $ 3.96 / share consensus estimate. Better price realization meant higher operating profit for the company. In fact, operating profit for the fourth quarter was $ 1.4 billion, up 32% year-on-year.
Following strong performance in the fourth quarter of 2009, Deer has a strong outlook for 2022, with agricultural and turf sales up about 20% and construction and forestry sales up 10% to 15%. Is expected. The company also expects net income to increase by 13% at the midpoint of the guide range.
We also updated the model following the fourth quarter release. In light of the continued growth in both segments, we have revised our FY2022 sales forecast (equipment business) to approximately $ 45.4 billion. As a result, EPS is expected to be $ 22.53 higher than $ 18.99 in 2021. Considering these changes in earnings and earnings forecasts, Deer’s rating Based on the 2022 forecast adjustment EPS of $ 22.53 and the price-earnings ratio of 20x, it will be $ 447 per share. This means it’s up 28% from the current $ 349, and DE stocks are currently undervalued, in our view, in the short term.
[Updated: Nov 19, 2021] Deere Q4 Revenue Preview
Deere & Company will report its fourth quarter results on Wednesday, November 24th. Deere estimates that revenue is below, but above, according to consensus estimates. Overall equipment demand has picked up sharply in recent quarters due to the gradual opening of the economy with rising vaccination rates, which could continue in the third quarter, but the company’s overall Performance can be squeezed by the increase in raw materials. Cost and supply chain headwinds. That said, our forecast is that Deer has a valuation of $ 434 per share, about 22% above the current market price of $ 357.Interactive dashboard analysis Deer’s advance earnings There are additional details.
Note that the one-month strike by Deer workers ended yesterday, and Deer agreed to raise basic production wages, bonuses, and improve workers’ pension funds.  The company may rely on increased production abroad as wages rise in the United States to meet the surge in demand for equipment.
(1) Revenue is expected to be below the consensus estimate
Trefis estimates Deere’s total revenue for the fourth quarter of 2021 to be approximately $ 10.4 billion, 2% below the consensus estimate of $ 10.6 billion. The company has confirmed that demand for construction and agricultural machinery has recovered significantly over the past few quarters. Third-quarter 2021 sales were up 32% to $ 10.4 billion as spending on agricultural machinery continued to rise and demand for construction machinery continued to recover. In fact, sales in the construction and forestry segment showed solid growth of 38% year-on-year, small-scale agriculture and turf sales increased 32%, and production and precision agriculture sales increased 29%. The Deere Revenues dashboard details the revenue splits by segment.
2) EPS is likely to exceed the consensus estimate
Deere’s fourth-quarter 2021 earnings per share are expected to be $ 3.98 per Trefis analysis, slightly above the consensus estimate of $ 3.96. Deere’s third-quarter net income was $ 1.7 billion, reflecting double the significant growth from $ 81 million in the year-ago quarter due to increased sales and lower operating expenses. Deere’s price realization was high in recent quarters and helped with overall margins, but in the fourth quarter, primarily inflation headwinds could put some pressure on margins. Looking at Fiscal Year 2022 as a whole, we expect EPS to more than double to $ 18.86, supported by both higher revenue and larger margins.
(3) The stock price is 22% higher than the current market price.
Go by us Deer’s rating, The EPS estimate is about $ 18.86 and the price-earnings ratio is 23 times in 2021 (26 times in 2020), which is equivalent to $ 434, 22% above the current market price of $ 357. increase. The outbreak of the coronavirus had a major impact on Deer’s business in 2020 as demand for equipment declined, but demand for both agriculture and construction equipment has shown a strong recovery so far this year. The trend is expected to continue. In the short term.
Note: Price earnings ratios are based on year-end stock prices and are reported (or expected) adjusted earnings for the full year.
It looks like DE stocks could grow even more, but it’s helpful to see how other companies in the industry are stacking up. Deere’s Inventory Comparison with Others is a summary of how Deere compares important metrics to its peers.You can find more such useful comparisons Peer comparison..
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November 21st returns MTD  YTD  2017-21-21 
DE return 8% 37% 257%
S & P 500 Return 3% 25% 110%
Trefis MS Portfolio Return-2% 49% 304%
 Monthly and annual as of November 26, 2021
 Cumulative total return since 2017
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