Deere (NYSE:DE) stock is on a wild ride today after starting off strong this morning with its earnings report for the third quarter of 2021.
Source: Jonathan Weiss / Shutterstock.com
Let’s dive into that news below to see why shares of DE stock are on the move today.
Deere starts off the earnings report strong with fully diluted earnings per share of $5.32.
That easily beats out Wall Street’s diluted earnings per share estimate of $4.57 for the quarter.
It’s also a massive jump compared to the company’s diluted EPS of $2.57 from the same time last year.
That also comes with a revenue of $11.53 billion for Q3 2021.
Yet again, that smokes analysts’ estimates, which was sitting at $10.3 billion.
It’s also a 29% increase over the company’s revenue of $8.93 billion from the same period of the year prior.
Another noteworthy number is Deere’s net income of $1.67 billion.
That’s a 106% year-over-year increase from $811 million.
John May, chairman and CEO of Deere, said the following in the earnings report moving DE stock today.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
“Looking ahead, we expect demand for farm and construction equipment to continue benefiting from favorable fundamentals. We are, at the same time, excited by the growing engagement with our digital platform, the John Deere Operations Center, as well as continued adoption of precision technologies, which unlock greater value for our customers.”
DE stock is seeing heavy trading this morning following its earnings release. That’s resulted in nearly 2 million shares of the stock changing hands. This is already above its daily average trading volume of about 1.7 million shares.
DE stock was down 2.6% as of Friday morning but was up significantly at the start of trading today.
Investors looking for more stock market news from today will want to keep reading!
We’ve got the stock market news that traders need to know about for Friday. A few examples to consider clicking on include Naked Brand (NASDAQ:NAKD) merger talks, the Tesla (NASDAQ:TSLA) Bot announcement, as well as what to expect from the market today. You can find the links for those stories below!
More Friday Stock Market News
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
More From InvestorPlace
The post DE Stock: 8 Things That Deere Investors Should Be Smiling About Today appeared first on InvestorPlace.
Deere investments look 'transformational' for company, trader says ahead of earnings
Deere, one of the best-performing industrials, is about to report earnings.
The company, whose stock is up more than 30% this year, will release results before the bell Friday.
Deere is a rare hybrid of industrials and tech. High-profile investor Cathie Wood of ARK Invest sees it as a tech company, even adding it to the firm's ARKQ autonomous technology and robotics ETF.
Those investments should continue to benefit the company and its stock, says Gina Sanchez, CEO of Chantico Global and chief market strategist at Lido Advisors.
"Its investments into agrotech are very real and could be transformational for this company," Sanchez told CNBC's "Trading Nation" on Thursday. "They're allowing farmers to do precision farming, not just getting the seeds in the ground as fast as possible but putting them in the right place where they have the best chance at growing."
Deere's X Series, for example, integrates cameras and artificial intelligence to monitor harvest quality. It has also developed drone equipment.
"It's something you can pick up right now at 22 times forward earnings," Sanchez added. "So we think that it not only meets all the conditions of the market, which is that it's not overvalued, but it also has growth potential."
Michael Binger, president of Gradient Investments, says to be cautious with Deere, though.
"I fall into the camp where Deere is still an industrial stock, which means it's still a cyclical stock, and investors look to buy at the beginning of the cycle and sell somewhere at the middle to the end of or the later part of the cycle," Binger said. "So, I think Deere is doing well in the near term, but you need to be careful."
He warns that higher inflation prices, if they prove temporary, could give the stock a short-term lift before falling back.
"Buying at this point, after the stock has run from $100 to $400, pulled back a little bit, I would be very wary of stepping into a sell-the-news type of situation," Binger said. "So if you don't own Deere, you missed it. I'm sorry, but don't step in at this point."
Deere has risen 150% in just the past 12 months. It has pulled back from highs earlier this month, though — shares are down 11% from that peak.
Correction: Michael Binger is president of Gradient Investments. A previous version misstated his firm's name.
Agriculture & Turf Parts Warranty Statement
Engine Overhaul Parts Warranty
Heading: Engine Overhaul Kit Warranty
John Deere will replace any parts contained in a new John Deere Engine Overhaul or Piston/Liner Kit that are defective in material or workmanship if the defect appears within the first 12 months or 1,500 hours of operations, whichever occurs first, after the date of purchase. Performance of this warranty will be free of charge for parts. In addition, John Deere will pay reasonably related replacement labor expenses if, but only if, (1) the defective Overhaul Kit or Piston/Liner Kit originally was installed by an authorized John Deere dealer, and, (2) the replacement part is installed by an authorized John Deere dealer.
THIS WARRANTY APPLIES ONLY
This warranty applies only to purchases from authorized John Deere dealers and extends only to the original retail purchaser of the kit.
THIS WARRANTY DOES NOT COVER:
- Premiums charged for overtime labor requested by the purchaser
- Transportation to and from the dealership or service calls made by the dealer.
- Depreciation or damage caused by normal wear, lack of reasonable and proper maintenance, failure to follow operating instructions, misuse, or accident.
TO SECURE WARRANTY SERVICE
To secure warranty service the original retail purchase must request, before expiration of the warranty period, warranty service from an authorized John Deere
dealer. When making such a request, the purchaser must present documentary proof of purchase that includes the purchase date (bill of sale, for example) and make the vehicle available at the dealer's place of business.
NO IMPLIED WARRANTY OR OTHER REPRESENTATION.
Where permitted by law, neither John Deere nor any company affiliated with it makes any warranties, representations, or promises as to the quality, performance, or freedom from defect of the products covered by this warranty. NO IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS IS MADE.
PURCHASER'S REMEDIES ARE LIMITED.
Where permitted by law, the purchaser's only remedies in connection with the breach of performance of any warranty on new John Deere Engine Overhaul Kits or Piston/Liner Kits are those set forth on this leaflet. In no event will the dealer, John Deere, or any company affiliated with John Deere be liable for incidental or consequential damages, including (but not limited to) loss of profits, rental of substitute equipment, or other commercial loss.
JOHN DEERE DOES NOT AUTHORIZE
John Deere does not authorize any person to make any representation or promise on its behalf, or to modify the terms or limitations of this warranty in any way.
John Deere Will Dominate the Farming Sector in 2021: Here's Why
It's been a great year for investors in Deere(NYSE:DE). At the time of writing, the stock is up 55% year to date, and there's reason to believe that there could be more to come in 2021. Let's take a look at the investment case for the stock in order to see whether it's a good value or not.
Two key reasons why Deere stock will do well
There are two key factors to focus on:
- Deere's early embrace of smart farming technologies has made it a leader in precision agriculture, and this will drive sales growth in the future.
- Deere is a highly cyclical stock that is coming into the mid-cycle of an upswing, and sales can grow significantly from here.
It may seem strange to highlight farming as a highly technological activity, but the reality is that digital technologies are set to revolutionize how farmers go about their business, and Deere is at the forefront.
To understand why, you have to go back to the basics of arable farming and some of the key questions involved: What seeds to plant this year? When to plant? How much water and fertilizer to use? How to care for the crop? When to harvest?
Unfortunately, the consequences of all these decisions are not known until after the final harvest, and then the farmer starts preparing for the following growing season. In the past, farmers relied on experience built up over the years. While that experiential knowledge is extremely valuable, it can be enhanced by the addition of real-time data points that help farmers make the correct decisions. In other words, smart farming.
Image source: Getty Images.
On an earnings call earlier in the year, Cory Reed, a Deere executive in the agricultural and turf division, said:
We contemplate every single job and decision required to prepare the soil, to plant the seed, to protect and nurture the crop and to harvest it" and "preparing the soil has implications for how to plant seeds and promote uniform emergence, which impacts how we care for that crop throughout the growing season.
Deere's unique position
From using satellites to guide tractors to investing in machine learning and Blue River's computer-vision software, plus the recent acquisition of farm profitability software company Harvest Profit, Deere has consistently led the field in adapting smart technology to farming.
Image source: Getty Images.
An integrated set of smart technologies combined with Deere's leading agricultural equipment will drive sales for years to come, the company's management predicts. Speaking on the recent earnings call, Chief Technology Officer Jahmy Hindman promised management would discuss some of the new product releases in due course.
Mid-cycle or peak?
Deere's sales tend to be highly cyclical. In common with most other cyclical businesses, Deere's valuation tends to be high at the trough as investors anticipate big earnings increases, and low at the peak when investors anticipate an earnings decrease.
The debate over whether Deere will be in the mid-cycle phase of an upswing in 2021 versus hitting a peak is not an academic one. Consider that the Wall Street analyst consensus for earnings before interest, tax, depreciation, and amortization (EBITDA) is $6.4 billion. This means the stock trades on a 2021 enterprise value (market cap plus net debt) to EBITDA multiple of 19.1 times. That's a very high multiple for Deere at its sales peak. See the valuations at the start of 2009, 2014, and 2019 in the chart below when Deere's sales peaked previously.
Data by YCharts
Deere's management is arguing that the company will be at 90% of the mid-cycle in 2021, while some analysts think it could actually be at the peak. The argument against Deere is that U.S. net cash farm income of $134 billion is actually the highest figure since $136.1 billion in 2013.
However, nearly all the increase in net cash farm income in 2020 over 2019 comes down to a $24 billion increase in Federal Government payments. Instead, let's focus on what the farmers are actually seeing from crop income. The chart below shows U.S. gross cash farm income, you can see that crop income (what really matters to Deere) hasn't increased dramatically in recent years.
Data source: United States Department of Agriculture.
The data in the chart (specifically gross cash income from crops) shows that crop income hasn't increased significantly in recent years. Consequently, it suggests that a multi-year recovery in spending on farming equipment is possible from here. In other words, the fear that Deere will hit a sales peak in 2021 is unlikely to come true.
Deere in 2021?
All told, a combination of Deere's precision agriculture solutions and its position in the cycle mean the company is well placed to do well in 2021. As ever, much will depend on the price directions of key crops like corn, wheat, cotton, and soybean. However, assuming they stay stable, Deere has plenty of opportunity to grow sales and earnings, and next year should be another bumper year for the company as it continues in recovery mode.
Investors john deere
Deere & Co.
Exchange NYSE More
- Industry Farm & Construction Machinery More
- Sector Industrial Goods More
- 10,000+ Employees
- Based in Moline, Illinois
Deere & Company, founded in 1837 (collectively called John Deere), has grown from a one-man blacksmith shop into a corporation that today does business around the world and employs approximately 56,000 people. The company continues to be guided, as it has been since its beginning, by the core values exhibited by its founder: integrity, quality, commitment and innovation.
The baron twitched and began to finish, then somehow, with the help of his mistress, he threw his leg over the ass. Got up ass to ass to this whore, along with this his dick inside the pussy scrolled and literally drilled the uterus, she just howled from the buzz. - now the bitch enjoy the Baron so in the castle is not less than 30 minutes smiling said the woman patting my whore's cheek filled with dog saliva.
You will also like:
- Shameless bar owner
- Rob ford toronto
- Carrier infinity fault code 44
- Free clipart beach scene
- Fortnite face paint easy
- Algebra 1 step by step
- Fishing planet update 2021
- Interior design masters nicki
- This romantic world 8 muses
- 99 cent store central ave
- Hp photosmart power cord
- Ply bead ceiling installation
- Mongolian memes
Hometown. But before that, I met Marina, in one of the Moscow restaurants - Marine, I am leaving for 20 days. Please, find me a proper place to live, with a mistress, like last time, to clean up after me - And you fucked her daughter, do you need. One.