Deere Outruns Estimates Again
Deere (NYS: DE) reported earnings on May 15. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 30 (Q2), Deere beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew.
Gross margins expanded, operating margins expanded, net margins dropped.
Deere logged revenue of $10.27 billion. The 13 analysts polled by S&P Capital IQ expected revenue of $9.84 billion on the same basis. GAAP reported sales were 9.0% higher than the prior-year quarter's $10.01 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $2.76. The 17 earnings estimates compiled by S&P Capital IQ predicted $2.73 per share. GAAP EPS of $2.76 for Q2 were 5.7% higher than the prior-year quarter's $2.61 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.4%, 160 basis points better than the prior-year quarter. Operating margin was 17.7%, 170 basis points better than the prior-year quarter. Net margin was 9.9%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $9.41 billion. On the bottom line, the average EPS estimate is $2.19.
Next year's average estimate for revenue is $35.66 billion. The average EPS estimate is $8.61.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,764 members out of 2,894 rating the stock outperform, and 130 members rating it underperform. Among 612 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 584 give Deere a green thumbs-up, and 28 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Deere is outperform, with an average price target of $98.33.
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The article Deere Outruns Estimates Again originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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