$DE (+8.8%) | Deere Q3'24 Earnings Highlights

🔹 EPS: $6.29 (Est. $5.70) 🟢

🔹 Revenue: $11.39B (Est. $10.95B) 🟢

Q3 Segment Revenue:

🔹 Production & Precision Ag: $5.1B; DOWN -25% YoY

🔹 Small Ag & Turf: $3.1B; DOWN -18% YoY

🔹 Construction & Forestry: $3.24B; DOWN -13% YoY (Est. $3.31B)

Segment Operating Profit:

🔸 Production & Precision Ag: $1.16B; DOWN -35% YoY 

🔸 Small Ag & Turf: $496M; DOWN -32% YoY

🔸 Construction & Forestry: $448M; DOWN -37% YoY

Financial Services:

🔹 Net Income: $153M; DOWN -29% YoY

Company Outlook:

🔹 FY24 Net Income: Approximately $7.0B (Est. $6.94B) 🟡

Industry Outlook for FY24:

— Agriculture & Turf:

→ U.S. & Canada: 

🔸 Large Ag DOWN ~15%,

🔸 Small Ag & Turf DOWN ~10%

🔹 Europe: DOWN ~15%

🔹 Asia: DOWN moderately

🔹 South America: Tractors & Combines DOWN 15-20%

— Construction & Forestry Outlook:

🔸 U.S. & Canada: Construction Equipment DOWN 5-10%, Compact Construction Equipment Flat to DOWN 5%

🔸 Global Forestry: DOWN ~10%

🔸 Global Roadbuilding: Flat to DOWN 5%

Strategic and Business Highlights:

🔸 Cost Reduction: Implemented employee-separation programs in Q3 2024 with estimated pre-tax expenses of $150M, of which $124M was recorded in Q3.

🔸 Market Conditions: Global agricultural fundamentals expected to remain weak; construction sector moderating.

🔸 Strategic Alignments: Steps taken to reduce costs and align production with customer needs in response to challenging market conditions.

CEO Commentary:

🔸 "John Deere's third-quarter results showcase our disciplined execution in the face of challenging conditions in the global agricultural and construction sectors. Despite significant headwinds, our teams have adapted well, focusing on our strategy and providing exceptional value to customers."

CFO Commentary:

🔸 "In response to weak market conditions, we have taken necessary steps to ensure our long-term competitiveness, allowing us to continue investing in innovative, high-quality products and solutions for our customers."