Deere & Company DE reported second-quarter FY23 net sales and revenue growth of 30% year-on-year to $17.39 billion, beating the consensus of $14.83 billion.
- Production & Precision Agriculture revenue grew by 53% Y/Y to $7.82 billion from higher shipment volumes and price realization.
- Small Agriculture & Turf revenue increased by 16% Y/Y to $4.15 billion due to price realization and higher shipment volumes.
- Construction & Forestry revenue improved by 23% Y/Y to $4.11 billion due to price realization and higher shipment volumes.
- Financial services revenues grew by 28% Y/Y to $1.11 billion.
- The EPS of $9.65 surpassed the consensus of $8.59.
- The operating profit grew by 46% Y/Y to $3.9 billion, mainly driven by Production & Precision Agriculture.
- Deere held $6.1 billion in cash and equivalents.
- "As shown by the company's outstanding second-quarter results, Deere continues to benefit from favorable market conditions and an improving operating environment," said John C. May, chairman and chief executive officer.
Guidance: Deere boosts FY23 Production & Precision Ag net sales growth of up ~ 20% and price realization of +15 %, Small Ag & Turf net sales growth of up ~ 5% and price realization of +9 %, and Construction & Forestry net sales growth of up ~ 15% and price realization of +10 %.
The company previously expected Precision Ag net sales growth of up ~ 20% and price realization of +14 %, Small Ag & Turf net sales growth of flat to up ~ 5% and price realization of +8 %, and Construction & Forestry net sales growth of up 10% - 15% and price realization of +9%.
Price Action: DE stock is up 3.21% at $370.52 during the premarket session on the last check Friday.
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