The 10-second takeaway
For the quarter ended April 30 (Q2), Deere missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved significantly.
Margins grew across the board.
Deere reported revenue of $9.41 billion. The 11 analysts polled by S&P Capital IQ predicted sales of $9.66 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $8.91 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 $2.61. The 18 earnings estimates compiled by S&P Capital IQ predicted $2.54 per share. GAAP EPS of $2.61 for Q2 were 23% higher than the prior-year quarter's $2.12 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 31.7%, 240 basis points better than the prior-year quarter. Operating margin was 17.9%, 290 basis points better than the prior-year quarter. Net margin was 10.6%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $9.54 billion.
Next year's average estimate for revenue is $34.27 billion.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,695 members rating the stock outperform and 125 members rating it underperform. Among 624 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 600 give Deere a green thumbs-up, and 24 give it a red thumbs-down.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Deere. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Deere to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.