Deere & Company (NYSE:DE) stock rose 5.03% (As on November 24, 7:43:46 AM UTC-4, Source: Google Finance) after the company reported better-than-expected fiscal fourth-quarter results as price increases helped lift sales, while the company provided an upbeat outlook for the ongoing financial year. Sales of production and precision agriculture equipment soared 59% to $7.43 billion, while small agriculture and turf equipment sales gained 26% to $3.54 billion and revenue in construction and forestry rose 20% to $3.37 billion. All three segments benefited from higher shipment volumes and price hikes, according to the company. Financial services net income totaled $232 million, up from $227 million in the 2021 quarter.
Moreover, Production and precision agriculture sales increased for the quarter due to higher shipment volumes and price realization. Operating profit rose primarily due to improved shipment volumes / mix and price realization. These items were partially offset by higher production costs, higher R&D and SA&G expenses, and the impact of higher reserves on the remaining assets in Russia. Small agriculture and turf sales increased for the quarter due to higher shipment volumes and price realization, partially offset by the negative effects of currency translation. Operating profit rose primarily due to price realization and improved shipment volumes / mix. These items were partially offset by higher production costs, higher R&D and SA&G expenses, and the unfavorable effects of foreign exchange.
DE in the fourth quarter of FY 22 has reported the adjusted earnings per share of $7.44, beating the analysts’ estimates for the adjusted earnings per share of $7.10. The company had reported the adjusted revenue growth of 37 percent to $14.35 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $13.46 billion.
For fiscal 2023, the manufacturer anticipates net income to be in a range of $8 billion to $8.5 billion versus the Street’s forecast of $7.86 billion. The company’s profit of $7.13 billion for the 2022 fiscal year was up 20% on an annual basis.
Production and precision agriculture sales are expected to increase between 15% and 20%, while revenue in the small agriculture and turf segment are set to be flat to up 5%. Construction and forestry sales are anticipated to climb about 10%. The company anticipates foreign-currency translations to have a negative impact on all divisions. Financial services net income is set to be at $900 million.