Investing.com — Deere & Firm reported fourth-quarter earnings that exceeded analyst expectations, regardless of going through important market challenges. The agricultural and building tools producer noticed its inventory edge up 0.3% following the announcement.
For the quarter ended October 27, 2024, Deere reported internet revenue of $1.245 billion, or $4.55 per share, surpassing the analyst estimate of $3.89 per share. Income for the quarter got here in at $11.14 billion, topping the consensus estimate of $9.23 billion. Nonetheless, each figures characterize substantial YoY declines, with internet revenue down 47% and worldwide internet gross sales and revenues lowering 28% in comparison with the identical quarter final 12 months.
The corporate’s Manufacturing & Precision Agriculture section noticed the steepest decline, with internet gross sales dropping 38% YoY to $4.305 billion. The Small Agriculture & Turf and Building & Forestry segments additionally skilled important decreases, with gross sales down 25% and 29% respectively.
John Might, chairman and CEO of Deere & Firm (NYSE:), commented on the outcomes: “Amid significant market challenges this year, we proactively adjusted our business operations to better align with the current environment.”
Wanting forward, Deere supplied steering for fiscal 2025, projecting internet revenue attributable to the corporate to be within the vary of $5.0 billion to $5.5 billion. This outlook displays ongoing headwinds throughout the corporate’s markets but in addition highlights improved structural efficiency.
The corporate expects U.S. and Canada massive agriculture tools gross sales to be down roughly 30% in fiscal 2025, whereas small agriculture and turf tools gross sales are projected to say no about 10%. Building tools gross sales in the identical area are forecasted to lower by round 10%.
Regardless of the challenges, Might emphasised the corporate’s dedication to future investments, stating, “We remain committed to making meaningful investments in our future while deepening our relationships with customers.”
