Deere & Company (NYSE: DE) reported its financial results for the fiscal second quarter on Friday that topped analysts’ estimates for earnings and revenue. The manufacturing firm, however, warned that supply-chain pressures were likely to increase in the rest of 2021. CEO John May said:
“While the company is clearly performing at a high level, Deere expects to see increased supply chain pressures through the balance of the year. We are working closely with key suppliers to secure the parts and components that our customers need to deliver essential food production and infrastructure.”
1. Financial performance
Deere said its net income printed at $1.79 billion (£1.26 billion) in the quarter that concluded on 2nd May that translates to $5.68 per share. In the same quarter last year, its net income was capped at $666 million, or $2.11 per share.
The NYSE-listed company valued its revenue at $12.06 billion in Q2 that represents a 30% annualised growth. According to FactSet, experts had forecast the company to post $10.57 billion of revenue and $4.51 of EPS.
2. Guidance for the full financial year
For the full financial year, Deere forecasts a 25% growth in its large agricultural equipment sales in its biggest combined market – the United States and Canada. In February, it had estimated a narrower up to 20% growth instead.
The Illinois-based company expects its per-share earnings to fall in the range of $5.3 to $5.7 this year. In the prior quarter (Q1), Deere had noted an over 100% growth in net income.
3. Other notable figures
At $11 billion, sales from equipment operations jumped 34% in the recent quarter. Deere noted a 26% increase
