Deere & Co. (DE, Financial) witnessed its stock decline by 1.98% as concerns over a lackluster quarterly performance and a cautious forecast for the next quarter impacted investor sentiment. The current stock price stands at $467.14.
In its fiscal first quarter, Deere (DE, Financial) reported earnings of $3.19 per share and revenue of $8.51 billion. While revenue surpassed estimates by $620 million, the earnings per share missed analyst expectations by $0.06. Notably, sales decreased by 30% compared to the same period last year, reflecting weak demand in the agriculture sector.
The company's management projected a difficult year ahead, anticipating a 15% to 20% decrease in precision agriculture sales for fiscal 2025. Forestry sales are also expected to drop by 10% to 15%, and small equipment and turf sales might decline by 10%.
From a valuation perspective, Deere (DE, Financial) has a price-to-earnings (P/E) ratio of 18.25 and a price-to-book (P/B) ratio of 5.56. The GF Value indicates that the stock is modestly overvalued with a GF Value of $362.73. For more details, you can visit the GF Value page.
The stock has faced medium warning signs including a declining revenue per share over the last 12 months and a dividend yield close to a one-year low. Additionally, Deere (DE, Financial) has been issuing new debt, with $20.3 billion of debt recorded over the past three years. Despite these challenges, the company shows some positive indicators such as an expanding operating margin and a strong Beneish M-Score, suggesting it is unlikely to manipulate earnings.
Deere's (DE, Financial) market capitalization stands at $127.226 billion, with a total daily trading volume of 1,174,985 shares. Investors may want to watch upcoming earnings announcements, which are scheduled for February 13, 2025, to assess future growth potential.
