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DE NYSE· Deere & Co.
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DE NYSE· Deere & Co.
Earnings report Q4 2023

DE Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

DE reported net sales and revenues of $61.25 billion in the latest quarter. This represents a significant increase compared to the previous year's revenue of $52.58 billion. The company's net sales from equipment operations amounted to $55.57 billion, showing a robust growth trend.

Strengths

DE's strong revenue growth in the latest quarter can be attributed to favorable industry fundamentals and strong demand for farm and construction equipment. The company's focus on structural profitability and strategic investments in solutions that deliver value to customers have also contributed to its financial success. DE's ability to keep cost increases below price realization has resulted in higher net income and diluted earnings per share (EPS) growth.

Challenges

While DE has performed well in terms of revenue growth, it faces challenges in managing costs and expenses. The cost of sales to net sales ratio decreased from 73.7% to 67.9%, indicating improved efficiency. However, the company needs to continue monitoring and controlling expenses to maintain profitability.

Noteworthy

DE's net income rose significantly in the latest quarter compared to the previous year, driven by strong market conditions. The company's return on net sales also improved, reaching 18.3% compared to 14.9% in the previous year. Additionally, DE's return on beginning stockholders' equity increased to 50.2%, reflecting the company's ability to generate higher returns for its shareholders.

Summary

DE's latest quarter performance demonstrates strong revenue growth, driven by favorable industry conditions and increased demand for its products. The company's focus on profitability and strategic investments has paid off, resulting in higher net income and improved returns for shareholders. However, DE needs to address cost management challenges to sustain its profitability in the future. Overall, DE's financial performance in the latest quarter showcases its resilience and ability to capitalize on market opportunities.

Source documents

Form 10-K  filed on Dec 15, 2023
116 pages scanned

Reference data

Company financials Q4 revenue 0
Analyst estimates Q4 EPS missed by 0.00%
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