Yesterday, 7:28 AM
- Net income of $351.2M, or $1.08 per share vs. $649.2M, or $1.83 per share, for the same period of 2014.
- Net sales decreased 25% Y/Y to $6.7B from $9B in the same quarter a year ago. Segment Sales: Agriculture & Turf. -25%; Construction & Forestry -32%.
- Guidance: Company equipment sales are projected to decrease about 7% for fiscal 2016 and to be down about 11% for the first quarter compared with year-ago periods. Fiscal 2016 earnings are expected to be approximately $1.4B.
- "Sales and earnings for the year were the sixth-highest in company history," said CEO Samuel Allen. "Although our forecast calls for lower results in the year ahead, the outlook represents a level of performance that is better than Deere has experienced in previous downturns."
- FQ4 results
- DE +5.1% premarket
Mon, Nov. 16, 9:17 AM
Tue, Nov. 10, 12:53 PM
- The corn production forecast from the USDA is lifted 99M bushels, with the average yield up 1.3 bushels per acre to 169.3 bushels. Projected use is cut 50M bushels. It adds up to stocks of 1.76B bushels vs. trade forecasts for 1.597B.
- Soybean stocks rise to 465M bushels vs. 436M expected.
- Wheat stocks rise to 911M bushels vs. 877M expected.
- Corn, beans, and wheat are all lower by 1.5-2% following the report.
- ETFs: CORN, JJG, WEAT, SOYB, GRU, WEET
- Also dinged by lower prices on the farm is Deere (DE -0.9%).
Mon, Oct. 26, 10:34 AM
- Deere (DE -2.2%) heads south after Barclays lowered its price target on the stock to $63 from $68.
- Due to the rise in used tractor sales, Deere's finance subsidiary income and price support will be affected. "Our data show only a few tens of millions of dollars monthly on used leases, which is a small drop in finance books that stretch into the tens of billions," Barclays said. "That drop matters however, since Deere has leased assets approaching $5B, at record high residual values."
- The company started at similar levels of residuals last cycle, and depreciation expenses rose by $140M a share, or $0.30 per share.
Thu, Oct. 15, 9:14 AM
- Terex (NYSE:TEX) -3.6% premarket after Manitowoc (NYSE:MTW) pre-announced lower than expected Q3 revenue following yesterday's close, pointing specifically to weakness in its cranes segment.
- MTW said its cranes segment continues to be hurt by a deteriorating demand environment, particularly in the Middle East and Asia, and lower than expected tower and crawler crane shipments exacerbated the Q3 shortfall in revenues.
- Other companies in the commercial equipment sector include Accuride (NYSE:ACW), Meritor (NYSE:MTOR), Deere (NYSE:DE) and Caterpillar (NYSE:CAT).
- MTW -14.4% premarket.
Thu, Oct. 8, 2:21 PM
- Citigroup questions the sustainability of the recent rally for some machinery stocks, saying its cautious view on the global economy and downbeat near-term outlook for most commodities make it wary on the more China/commodity-levered names such as Caterpillar (CAT +1.8%) and Joy Global (JOY +10.9%).
- Citi says short-covering does not appear to have played a major role in the recent rally, at least relative to other heavily-shorted sectors; the firm senses conviction levels have been growing on the short side in recent weeks for JOY, Oshkosh (OSK +2.3%) and United Rentals (URI +3.4%), and historical seasonal patterns argue against being too bearish against Deere (DE +2.2%).
- In light of bearish investor positioning, the firm favors Buy-rated URI, OSK and Eaton (ETN +1.6%).
Mon, Sep. 28, 2:48 PM
- It isn't just Glencore (OTCPK:GLCNF, OTCPK:GLNCY) who is tanking, as at least one measure of raw materials producers plunges to seven-year lows following the company's woes and data that showed weakening Chinese industrial profits.
- Shares of Glencore plunged 29% to close at just 69 pence, an all-time low, exaggerated by a damning report that said future earnings are so uncertain that the company may need to direct all of its efforts to repay debt.
- Freeport McMoRan (FCX -10.2%) is hit hard after breaking below support at $10/share, and global mining peers Rio Tinto (RIO -4.1%), BHP Billiton (BHP -4.5%) and Vale (VALE -9.4%) also are smacked down.
- A number of other firms also are in situations not that much different from Glencore, says DTN analyst Darin Newsom, noting that Caterpillar (CAT -2.2%) and Deere (DE -1.6%) have been struggling and adding that pressure on Glencore may “create a vacuum those other struggling companies could get sucked into."
- Along with oil and gas producers and precious metals miners, even financial stocks are affected, with Morgan Stanley (MS -3.6%) and Goldman Sachs (GS -3.4%) underperforming their banking peers, perhaps as investors grow nervous about the potential for any of Glencore's problems possibly blowing back on other commodity trading operations.
Thu, Sep. 24, 11:22 AM
- Caterpillar's (CAT -6.3%) latest woes are wreaking havoc on other machinery stocks, including Deere (DE -3.4%), Joy Global (JOY -2.4%), Cummins (CMI -2.8%) and Terex (TEX -5.6%).
- CAT said today it is lowering its sales outlook for the year and will cut as many as 5K jobs between now and the end of 2016, and that sales and revenue could drop in 2016 for a record fourth straight year.
- Earlier this week, CAT gave its latest update on three-month rolling sales figures, which have now declined for 33 straight months.
Mon, Aug. 24, 11:39 AM
- Deere (DE -2.4%) is down another 2.5% following Friday's 8% plunge, as RBC analysts say they expect currently soft farm fundamentals and incrementally weaker construction demand will continue to limit significant outperformance.
- While RBC says it likes Deere’s long-term position in the agriculture market, and notes that the company’s cost management, cash generation and share repurchases have been strong, but U.S. farm cash receipts look likely to slip again next year, increasing the chance of a sales decline, while construction sales also remain weak.
- The firm reiterates its Sector Perform rating on the stock while lowering its target price to $85 from $90.
Fri, Aug. 21, 9:15 AM
Fri, Aug. 21, 7:28 AM
- Net income of $511.6M, or $1.53 per share vs. $850.7M, or $2.33 per share, for the same period of 2014.
- Net sales decreased 20% Y/Y to $7.6B from $9.5B in the same quarter a year ago. Segment Sales: Agriculture & Turf. -24%; Construction & Forestry -13%.
- For fiscal 2015, the company now anticipates equipment sales to decrease 21%, and to be down 24% for the fourth quarter compared with year-ago periods. Net income is expected to be about $1.8B, down from last quarter's projection of $1.9B.
- "John Deere's (NYSE:DE) Q3 results reflected the continuing impact of the downturn in the farm economy as well as lower demand for construction equipment," said CEO Samuel Allen. "Nevertheless, all of Deere's businesses remained solidly profitable."
- FQ3 results
- DE -1.7% premarket
Mon, Jul. 27, 12:29 PM
- Goldman Sachs analyst Jerry Revich cuts his view on the machinery sector to Cautious from Neutral given a continued challenging environment, and downgrades Manitowoc (MTW -2.8%), Terex (TEX -3.6%) and Navistar (NAV -1.2%) to Sell from Neutral.
- Revich notes a challenging crane demand outlook due to a challenging outlook for commodity capital expenditure, a slowing infrastructure investment for commodity export regions, and high crane capital stock following a 10-plus year build-out cycle.
- On NAV, the company's debt, pension, warranty and truck trade-ins are "high and rising" amid softening used truck prices and U.S. trucking rates, which could push out its margin recovery story, Revich writes.
- Deere (DE -0.7%) and AGCO (AGCO -0.6%) are upgraded to Neutral from Sell even as the analyst is negative on the end market outlook for agriculture equipment.
Tue, May 26, 9:01 AM
Fri, May 22, 7:30 AM
- Net income of $690.5M, or $2.03 per share vs. $980.7M, or $2.65 per share, for the same period of 2014.
- Net sales decreased 20% Y/Y to $7.4B from $9.2B in the same quarter a year ago. Segment Sales: Agriculture & Turf. -25%; Construction & Forestry +2%.
- For fiscal 2015, the company now anticipates equipment sales to decrease 19%, and to be down 17% for the third quarter compared with year-ago periods. Net income, however, is expected to be about $1.9B, up from a February projection of $1.8B.
- "John Deere (NYSE:DE) expects to be solidly profitable in 2015, with the year ranking among our stronger ones in sales and earnings despite the pullback in the farm sector," said CEO Samuel Allen.
- FQ2 results
- DE +1.7% premarket
Fri, May 15, 8:28 AM
- "We believe it was clear from what we heard that the industry is currently in dire straits with the potential for a liquidity crunch for farmers into 2016," says Morgan Stanley's Ann Dunigan after spending time agriculture dealers, farmers, and industry experts in the Midwest.
- Even dealers, she says, acknowledge there are far too many used high horsepower Deere (NYSE:DE) tractors in inventory - likely to weigh on new tractor sales for the foreseeable future.
- She downgrades to Underweight and cuts the price target to $84.
- Shares are lower by 1.6% premarket.
Fri, Feb. 20, 7:27 AM
- Net income of $386.8M, or $1.12 per share vs. $681.1M, or $1.81 per share, for the same period of 2013.
- Net sales decreased 17% Y/Y to $6.4B from $7.7B in the same quarter a year ago. Segment Sales: Agriculture & Turf. -27%; Construction & Forestry +13%.
- For fiscal 2015, the company now expects equipment sales to decrease 17%, and to be down ~19% for the second quarter compared with year-ago periods. The company also lowered its net income forecast to $1.8B from $1.9B.
- "Even with a continued pullback in the agricultural sector, John Deere expects to remain solidly profitable in 2015," said CEO Samuel Allen. "Longer term, the company's future continues to hold great promise for customers and investors."
- Q4 results
- DE -1.3% premarket
Deere & Company operates in three business segments: agriculture/ turf, construction/forestry, & financial services. The company helps customers to be more productive as they help to improve the quality of life for people around the world.
Other News & PR