
Deere & Co. today reported higher fourth-quarter earnings and full-year results compared to 2022, but stock prices fell amid analysts’ warnings that Deere’s reduced 2024 forecast signals a slow down in international product demand.
For the fourth quarter, ended Oct. 29, John Deere reported on Wednesday, Nov. 22, a net income of $2.369 billion, or $8.26 per share, compared with a net income of $2.246 billion, or $7.44 per share, last year. The Moline-based Fortune 100 company said that increase, which was well ahead of analysts’ expectations, was “driven by solid market conditions, differentiated products, and strong execution.”

Wednesday’s earnings report, however, also included a 2024 earnings forecast range of $7.75 billion to $8.25 billion that was markedly lower than Deere’s 2023 full-year earnings totals.
Due in part to that lower-than-expected 2024 forecast, Deere stock was trading at $357.86 Wednesday morning. That was down $24.76, or 6.47%, from the close of business Tuesday, Nov. 21.
Analysts including at TheStreet blamed the decline on the global equipment maker’s lower economic forecast, which those analysts said echoed previous foreign market slow-down warnings issued earlier by Deere’s competitor Caterpillar.
For the fourth quarter and fiscal year that ended Oct. 29, however, the news for Deere was far more positive. Among the highlights is that the global equipment manufacturer’s fourth-quarter and full-year earning results are well above 2022 levels. Indeed, overall, in fiscal year 2023 net income attributable to Deere was $10.166 billion, or $34.63 per share, compared with $7.131 billion, or $23.28 per share, in fiscal year 2022.
Preparing for future
“While our end markets will fluctuate, we remain focused on disciplined execution and strategically investing in solutions that drive customer value,” John Deere Chairman and CEO John May said in a detailed earnings news release.
“As evidenced by our guidance for 2024, we are demonstrating higher levels of through-cycle structural profitability while making our company more resilient and better equipped for the future,” he added.
The company also reported that fourth quarter worldwide net sales and revenues decreased 1% to $15.412 billion, but rose 16% to $61.251 billion year over year. Net sales were $13.801 billion for the quarter and $55.565 billion for the year, compared with $14.351 billion and $47.917 billion, respectively, in 2022.
“Deere’s fourth-quarter and full-year results can be attributed to the successful execution of our Smart Industrial Operating Model and the value that customers recognize in our industry-leading products and solutions,” Mr. May said in the earnings report. “We must also recognize and credit our dedicated employees, dealers, and suppliers, whose hard work and focus have been instrumental to our overall success.”
Fourth quarter reports by division:
- Production & Precision Agriculture – Net sales and revenue decreased by 6% in this category for the quarter from $7.434 billion in 2022 to $6.965 billion in 2023. That was due, Deere said, to lower shipment volumes partially offset by price realization. Operating profit improved primarily due to price realization partially offset by lower shipment volumes and sales mix and research and development (R&D) expenses. The prior period also was impacted by higher reserves on assets in Russia.
- Small Agriculture & Turf – Net small agriculture and turf sales were down by 13% for the quarter from $3.544 billion in 2022 to $3.094 billion due to lower shipment volumes partially offset by price realization. Operating profit decreased due to a lower shipment volume and sales mix and higher selling, general and administrative expenses and R&D expenses, partially offset by price realization.
- Construction & Forestry – Sales of construction and forestry equipment increased 11% in the Q4 to $3.742 billion, compared to $3.373 billion in the same period last year. Operating profit increased primarily due to price realization, partially offset by higher production costs, less favorable sales mix, unfavorable effects of foreign currency exchange and a loss on the sale of the Russian road building business. The period also was impacted by the higher reserve on assets in Russia.
- Financial Services – The division’s net income for the quarter fell 18% from $232 million a year ago to $190 million in Q4 2023. That was due to unfavorable derivative valuation adjustments, less-favorable financing spreads and a higher provision for credit losses (excluding reserves in Russia). These factors were partially offset by income earned on a higher average portfolio. In the fourth quarter of 2022, financial services also increased its reserves for credit losses in Russia and recorded an intercompany benefit from the equipment operations to guarantee the financial services investment in certain international markets, including Russia.
Readers can find the full press release and charts provided by John Deere here.