The 10-second takeaway
For the quarter ended Oct. 31 (Q4), Deere beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Margins dropped across the board.
Deere reported revenue of $9.05 billion. The 13 analysts polled by S&P Capital IQ predicted revenue of $8.85 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $8.61 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.75. The 18 earnings estimates compiled by S&P Capital IQ averaged $1.88 per share. GAAP EPS of $1.75 for Q4 were 8.0% higher than the prior-year quarter's $1.62 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.1%, 100 basis points worse than the prior-year quarter. Operating margin was 11.5%, 30 basis points worse than the prior-year quarter. Net margin was 7.0%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $6.70 billion. On the bottom line, the average EPS estimate is $1.38.
Next year's average estimate for revenue is $35.21 billion. The average EPS estimate is $8.32.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,723 members out of 2,851 rating the stock outperform, and 128 members rating it underperform. Among 652 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 628 give Deere a green thumbs-up, and 24 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Deere is outperform, with an average price target of $87.42.
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