Deere (DE) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Deere performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Net Sales and Revenues- Equipment Operations- Net sales: $11 billion versus the three-analyst average estimate of $10.91 billion. The reported number represents a year-over-year change of +6.2%.
• Net Sales and Revenues- Agriculture and Turf (Production & precision ag net sales + Small ag & turf net sales): $7.38 billion versus the three-analyst average estimate of $7.33 billion. The reported number represents a year-over-year change of +1.1%.
• Net Sales and Revenues- Construction & forestry net sales: $3.62 billion versus the three-analyst average estimate of $3.58 billion. The reported number represents a year-over-year change of +18.3%.
• Net Sales and Revenues- Small ag & turf net sales: $3.38 billion compared to the $3.4 billion average estimate based on three analysts. The reported number represents a change of +11.8% year over year.
• Net Sales and Revenues- Production & precision ag net sales: $4 billion compared to the $3.94 billion average estimate based on three analysts. The reported number represents a change of -6.4% year over year.
• Net Sales and Revenues- Financial services- Finance and Interest Income: $1.38 billion versus the two-analyst average estimate of $1.32 billion. The reported number represents a year-over-year change of -3.5%.
• Net Sales and Revenues- Financial services revenues: $1.37 billion compared to the $1.37 billion average estimate based on two analysts. The reported number represents a change of -3.3% year over year.
• Net Sales and Revenues- Other revenues: $238 million versus the two-analyst average estimate of $248.58 million. The reported number represents a year-over-year change of -2.1%.
• Net Sales and Revenues- Net sales: $11 billion compared to the $10.88 billion average estimate based on two analysts. The reported number represents a change of +6.2% year over year.
• Operating profit- Agriculture and turf (Production & precision ag + Small ag & turf): $1.15 billion versus $986.33 million estimated by three analysts on average.
• Operating profit- Construction & forestry: $436 million versus $423.94 million estimated by three analysts on average.
• Operating profit- Equipment Operations (Production & precision ag + Small ag & turf + Construction & forestry): $1.59 billion compared to the $1.41 billion average estimate based on three analysts.

View all Key Company Metrics for Deere here>>>

Shares of Deere have returned -4.4% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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