Deere Hovers Around Record Highs on Another Earnings Beat
Deere (DE:US) stock has continued to climb in recent days after the agricultural-equipment company reported better-than-expected first-quarter results.
Deere reported fiscal first quarter 2023 earnings to be $6.55 per share, easily ahead of the average analyst estimate of $5.53. Revenue increased by 34% year-over-year to $11.40 billion, led by very strong sales by production and precision agriculture - Deere’s largest business unit. This unit saw its sales increase by 55% to generate $5.2 billion in Q4 revenue. Net income also stood at $1.96 billion.
“Deere's first-quarter performance is a reflection of favorable market fundamentals and healthy demand for our equipment as well as solid execution on the part of our employees, dealers, and suppliers to get products to our customers," said John C. May, chairman, and chief executive officer. "We are, at the same time, benefiting from an improved operating environment, which is contributing to higher levels of production."
Deere shares were also supported by the increased full-year forecast. The company now expects to generate between $8.75 billion and $9.25 billion, up from the prior $8 billion to $8.5 billion.
As a result, Deere stock jumped last week to now trade only about 4% off the all-time high set in early December 2022.
Looking at the Capitol Trades data, Deere shares were often traded by these two Congress members Josh Gottheimer and Ro Khanna. Most recently, Rep. Gottheimer bought Deere shares in January, similar to Rep. Khanna’s purchase in November.
