🚜📊 Deere's Q2 2024 results: beating expectations but with concerns for the future 📊🚜

Deere & Company $DE, also known asJohn Deere, is a leading global manufacturer of agricultural, forestry and construction equipment. Today, it released its second quarter 2024 results .

✅ Earnings per share (EPS): $8.53, which is above analysts' expectations, who were predicting 7.87 USD.

✅ Revenue: $15.24 billion, up 13,86 % above analysts' estimates ofUSD 13.38 billion.

Although the company beat estimates for the second quarter, it cut its profit forecast for the year 2024. The cause is declining farm income, which is dampening demand for large farm equipment.

📉 Key factors:

Prices of crops such as soybeans and corn have fallen significantly. Another problem is rising production costs, this is contributing to a decline in farm incomes. According to the U.S. Department of Agriculture, farm income is expected to decline this year by 25,5 % to USD 116.1 billion. This trend is adversely affecting farmers' purchasing sentiment.

🛠 Forecast and Outlook:

Sales for large farm equipment are expected to decline by 20-25 %.

Estimate for net profit for the year 2024 is now approximately USD 7 billion, down from the original expectation of USD 7.50-7.75 billion.
Despite these challenges, the company remains Deere strong. Beating estimates for the second quarter shows the robustness of its business model.

What do you think of the company and the agriculture industry as a whole? Do you have any other favorites, or is the industry not appealing to you at the moment? 💡