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Deere & Company (DE) Releases Fourth-Quarter Earnings Beating Expectations; Supply Chain Pressure Still Poses Challenges

Wednesday, November 24, 2021 09:33 AM | Carl Pettit
Deere & Company (DE) Releases Fourth-Quarter Earnings Beating Expectations; Supply Chain Pressure Still Poses Challenges

Deere & Company (DE) released its fourth-quarter earnings on Nov. 24, beating market expectations, although the company conceded that supply chain pressures still pose some challenges going forward. Just before market open today, DE stock rose 2.21% in value.

Strong Fourth-Quarter Earnings

Deere’s fourth-quarter earnings performed well despite labor issues stemming from a United Auto Workers strike involving 10,000 workers (the union accepted a six-year contract offer on Nov. 17). For the quarter, the company’s earnings were $4.12 a share, beating prior estimates of around $3.90 a share.

Fourth-Quarter Revenue Beat Forecasts

“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.” Analysts had only expected around $10.44 billion in net sales for the quarter.

CEO Comments Regarding Sale and Supply Chain

"Our results reflect strong end-market demand and our ability to continue serving customers while managing supply-chain issues and conducting contract negotiations with our largest union," CEO John May remarked.

Looking Ahead

As far as guidance goes, Deere is looking at a net income for 2022 in the $6.5 billion to $7 billion range. John May believes “demand for farm and construction equipment” will continue to benefit from “positive fundamentals, including favorable crop prices, economic growth, and increased investment in infrastructure." May also noted that supply-chain pressures will continue to pose challenges for the company’s industries moving forward.

Short-Term Technical Rank - 67

DE has a Short-Term Technical Rank of 67. Find out what this means to you and get the rest of the rankings on DE!

Deere is the world's leading manufacturer of agricultural equipment, producing some of the most recognizable machines in the heavy machinery industry. The company is divided into four reportable segments: production and precision agriculture, small agriculture and turf, construction and forestry, and John Deere Capital Corporation. Its products are available through a robust dealer network, which includes over 1,900 dealer locations in North America and approximately 3,700 locations globally. John Deere Capital Corporation provides retail financing for machinery to its customers, in addition to wholesale financing for dealers; which increases the likelihood of Deere product sales.

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