Why did DE's Q4 2024 earnings exceed forecasts significantly?

Deere & Company's (DE) Q4 2024 earnings exceeded forecasts significantly due to strategic investments and financial services growth, despite a significant drop in sales volumes: 1. **Strategic Investments**: Deere has been focusing on innovation and cash flow strength to tackle future market uncertainties. This strategic approach has likely helped the company to maintain profitability despite challenging market conditions. 2. **Financial Services Growth**: The company's financial services segment has been a growth area, which has helped to offset some of the declines in equipment sales. This diversification has been a key factor in Deere's ability to exceed earnings expectations. 3. **Income from Intellectual Property**: Deere has benefited from income related to intellectual property, which has contributed to the company's earnings. This income stream is less affected by short-term market fluctuations and has provided a stable source of revenue. Overall, Deere's focus on strategic investments, financial services growth, and income from intellectual property has helped the company to exceed earnings forecasts significantly, despite a decline in sales volumes.