Home
 

InvestorGuide Stock Analysis

Deere's Profit Falls 27%
Excerpt from the InvestorGuide.com Stock of the Day on 8/19/2009

Deere & Company (DE: Charts, News, Offers), best known for its popular green and yellow John Deere brand, announced today that its profit for the quarter fell 27%. The farm equipment and tractor manufacturer watched its net income slip from $575.2 million a year ago to $420 million for the quarter. This earnings report also marks the second consecutive quarter that Deere has posted a decline in sales. Despite its recent dip in performance, the wheels have not completely fallen off this tractor company. After all, Deere did manage to record an overall profit for the quarter. However, why has Deere & Company's quarterly performance been down so much lately?

A drop in sales will cut into any company's profit margin; some more than others, just ask Deere. The iconic tractor company has been dealing with declining sales and profit for a few months now, but it has reached an all time low this quarter. Deere & Co.'s net sales have decreased 24% for the quarter and are on pace for the largest single-year sales decline in at least 50 years. The driving force behind Deere's sales plummet has been the recent housing market fallout, which has killed the demand for Deere's construction machinery. In addition, the global recession has slowed down international sales by creating restricted credit opportunities and lower farm incomes for potential Deere customers. The farm equipment manufacturer has done its best to combat declining sales by raising equipment prices and cutting expenses, but it has not been enough. Deere has even let go nearly 800 employees in an attempt to manage expenses. More >


Subscribe to the Stock of the Day!
 

Add to tracker

InvestorGuide Stock of the Day RSS feed

RSS
Deere & Co. Chugs Along on Booming Farm Sales
Excerpt from the InvestorGuide.com Stock of the Day on 11/21/2007

In a refreshing change to the business and economic news making headlines lately, Deere & Co. has just announced earnings for a particularly strong quarter. The agricultural and construction equipment maker has been on the rise, posting record results over the past four years amid the weakened housing market and economic downturns. They continue to streamline operations to capitalize on their successful divisions, but the sectors driving sales one quarter have been different from those that are the money-makers the next. Will strategy keep them profitable or should Deere take things one quarter at a time? More >

Deere & Company Posts Increase in Profit, but Cuts Forecast
Excerpt from the InvestorGuide.com Stock of the Day on 11/21/2006

Deere & Company may have posted a better-than-expected profit this quarter, but the worldwide maker of agriculture and construction equipment won't be celebrating for long. Although their sales were on the rise, the earnings reports coming out of the industries they depend on for clientele have not been as positive. The result is a sharply-lowered forecast for the coming year. As all its major customers are facing slumps of their own, will Deere have the steam to keep on trucking? More >

Deere & Company (DE) Upgrades

Date
Analyst
Old Rating
New Rating
01/08/2009
Sandford C. Bernstein
Market Perform
Outperform
08/14/2008
Stifel Nicolaus
Hold
Buy
05/14/2008
Merrill Lynch
Neutral
Buy
11/26/2007
Banc of America
Neutral
Buy
03/07/2007
Lehman Brothers
Overweight
Equal Weight
02/16/2007
Longbow Research
Neutral
Sell

Deere & Company (DE) Downgrades

Date
Analyst
Old Rating
New Rating
09/03/2009
JPMorgan
Neutral
Underweight
01/26/2009
Buckingham Research
Strong Buy
Neutral
10/20/2008
Morgan Stanley
Overweight
Equalweight
04/02/2007
Stifel Nicolaus
Hold
Buy
11/17/2005
UBS
Neutral
N/A

Deere & Company (DE) New Coverage

Date
Analyst
Rating
11/06/2009
Macquarie
Neutral
06/26/2009
Citi
Buy
03/24/2009
Jefferies & Co
Buy
03/25/2008
Sterne Agee & Leach
Sell
Get Analysis For: