Deere and Company (DE) earnings report for the 4th quarter of their 2021 fiscal year
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Category: Deere and Company (DE)
Date: 30 November 2021 Stock Price of Deere and Company (DE): $348.09 Market Capital of Deere (DE): $107.9 billion We take a look at the 4th quarter 2021 earnings report from Deere and Company the tractor and agricultural machinery equipment supplier. For the 4th quarter of their 2021 fiscal year the group reported revenues of $11.33 billion and net income of $1.28 billion.
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Deere’s strong fourth-quarter and full-year performance was delivered by our dedicated employees, dealers, and suppliers throughout the world, who have helped safely maintain our operations and serve customers - John C. May, chairman and chief executive officer"
About Deere and Company
John Deere has developed a strategy to grow and sustain its successful global business. To learn more about our strategy, please watch the video featuring Chairman and CEO Sam Allen.
Since 1837, John Deere has capitalized on the opportunities presented by increasing population, prosperity, and urbanization. Today, broad trends based on population and income growth, especially in developing nations, are driving agricultural output and infrastructure investment. Further, technological advances and agricultural mechanization are expanding existing markets and opening new ones.
We believe John Deere is exceptionally well-positioned to seize these opportunities and fulfill our higher purpose of helping improve living standards for people everywhere through our commitment to those linked to the land.
Since 1837, John Deere has capitalized on the opportunities presented by increasing population, prosperity, and urbanization. Today, broad trends based on population and income growth, especially in developing nations, are driving agricultural output and infrastructure investment. Further, technological advances and agricultural mechanization are expanding existing markets and opening new ones.
We believe John Deere is exceptionally well-positioned to seize these opportunities and fulfill our higher purpose of helping improve living standards for people everywhere through our commitment to those linked to the land.
Overview of Deere and Company's 3rd quarter 2021 earnings report
- Fourth-quarter net income rises on net sales gain of 19%, demonstrating solid execution and benefits of operating model.
- UAW contract agreement shows commitment to Deere’s workforce.
- Full-year 2022 earnings forecast to be $6.5 to $7.0 billion, reflecting healthy demand
Deere and Company management commentary on their 3rd quarter 2021 earnings
MOLINE, Illinois (November 24, 2021) — Deere & Company reported net income of $1.283 billion for the fourth quarter ended October 31, 2021, or $4.12 per share, compared with net income of $757 million, or $2.39 per share, for the quarter ended November 1, 2020. For fiscal year 2021, net income attributable to Deere & Company was $5.963 billion, or $18.99 per share, compared with $2.751 billion, or $8.69 per share, in fiscal 2020. Worldwide net sales and revenues increased 16 percent, to $11.327 billion, for the fourth quarter of fiscal 2021 and rose 24 percent, to $44.024 billion, for the full year. Equipment operations net sales were $10.276 billion for the quarter and $39.737 billion for the year, compared with corresponding totals of $8.659 billion and $31.272 billion in 2020.
“Deere’s strong fourth-quarter and full-year performance was delivered by our dedicated employees, dealers, and suppliers throughout the world, who have helped safely maintain our operations and serve customers,” said John C. May, chairman and chief executive officer. “Our results reflect strong endmarket demand and our ability to continue serving customers while managing supply-chain issues and conducting contract negotiations with our largest union. Last week’s ratification of a 6-year agreement with the UAW brings our highly skilled employees back to work building the finest products in our industries. The agreement shows our ongoing commitment to delivering best-in-class wages and benefits.”
“Deere’s strong fourth-quarter and full-year performance was delivered by our dedicated employees, dealers, and suppliers throughout the world, who have helped safely maintain our operations and serve customers,” said John C. May, chairman and chief executive officer. “Our results reflect strong endmarket demand and our ability to continue serving customers while managing supply-chain issues and conducting contract negotiations with our largest union. Last week’s ratification of a 6-year agreement with the UAW brings our highly skilled employees back to work building the finest products in our industries. The agreement shows our ongoing commitment to delivering best-in-class wages and benefits.”
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Company Outlook & Summary
Net income attributable to Deere & Company for fiscal 2022 is forecasted to be in a range of $6.5 billion to $7.0 billion. “Looking ahead, we expect demand for farm and construction equipment to continue benefiting from positive fundamentals, including favorable crop prices, economic growth, and increased investment in infrastructure,” May said. “At the same time, we anticipate supply-chain pressures will continue to pose challenges in our industries. We are working closely with our suppliers to address these issues and ensure that our customers can deliver essential food and infrastructure more profitably and sustainably.
Net income attributable to Deere & Company for fiscal 2022 is forecasted to be in a range of $6.5 billion to $7.0 billion. “Looking ahead, we expect demand for farm and construction equipment to continue benefiting from positive fundamentals, including favorable crop prices, economic growth, and increased investment in infrastructure,” May said. “At the same time, we anticipate supply-chain pressures will continue to pose challenges in our industries. We are working closely with our suppliers to address these issues and ensure that our customers can deliver essential food and infrastructure more profitably and sustainably.
Deere and Company (DE) stock price chart over the last 5 years
The image below shows the stock price history of Deere and Company (NYSE: DE) for the last 5 years. And its been a very good time for Deere and Company stockholders. Over the last 5 years the stock of Deere and Company increased by 235 % over the last 5 years.
The stock of Deere and Company is trading at a little closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Deere and Company's stock is very positive at this point in time
The stock of Deere and Company is trading at a little closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Deere and Company's stock is very positive at this point in time
Deere and Company ( NYSE:DE) stock price history over the last 5 years
Deere and Company (DE) stock vs Caterpillar (CAT) stock over the last 5 years
The image below shows the stock price performance of Deere and Company (DE) compared to the stock price performance of Caterpillar (CAT) over the last 5 years. As the image below shows the trend of these two companies' stock price trends are very similar. The summary below shows the stock price returns provided by these two firms over the last 5 years.
The stock of Deere has easily outperformed that of Caterpillar over the last 5 years.
- Deere and Company (DE): 235%
- Caterpillar (CAT): 107%
The stock of Deere has easily outperformed that of Caterpillar over the last 5 years.
Deere and Company (DE) stock vs Caterpillar (CAT) stock over the last 5 years
Our latest Deere and Company (DE) stock forecast
So what do we value the stock of Deere and Company at based on their latest set of earnings report and fiscal guidance provided? Considering the progress on the share buy back, their strong cash generation and moderate inventory and accounts receivable levels our valuation model provides a target price (full value price) for Deere and Company at $305 a stock (up from our 3rd quarter 2021 earnings report valuation of Deere and Company). We therefore believe the stock of Deere and Company is overvalued
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which is $305 in this case. A good entry point into Deere and Company would therefore be at $274.50 or below.
We expect the stock of Deere and Company to pull back from its current price to levels closer to our target price in coming weeks and months. Therefore we rate the stock of Deere as a SELL.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price) which is $305 in this case. A good entry point into Deere and Company would therefore be at $274.50 or below.
We expect the stock of Deere and Company to pull back from its current price to levels closer to our target price in coming weeks and months. Therefore we rate the stock of Deere as a SELL.
John Deere agricultural equipment
Next earnings release of Deere and Company
It is expected that Deere and Company will release their 1st quarter 2022 earnings report in late February 2022