Dow Jumps Over 100 Points; Deere Posts Upbeat Earnings

The Dow Jones Industrial Average (DJIA) surged over 100 points on Thursday, driven by positive earnings results from Deere & Company (DE) and broader market optimism. The DJIA closed at 34,538.23, up 0.31% or 106.33 points, while the S&P 500 gained 0.44% and the Nasdaq Composite rose 0.57%.

Deere & Company, the world's leading manufacturer of agricultural and construction equipment, reported first-quarter earnings that topped analysts' expectations. The company's net income of $869 million, or $3.19 per diluted share, was down roughly 50% from $1.75 billion or $6.23 per share in Q1 2024. However, revenue decreased by 30% to $8.51 billion. The disappointing performance was primarily attributed to lower shipment volumes and ongoing market challenges.

MetricQ1 2025Q1 EstimateQ1 2024Change (YOY)EPS (Diluted)$3.19$3.11$6.23(49%)Revenue$8.51 billion$7.7 billion$12.19 billion(30%)Net income$869 millionN/A$1.75 billion(50%)Operating margin (Production & Precision Ag segment)11.0%N/A21.6%(10.6 pps)Source: Deere & Co. Note: Analyst consensus estimates for the quarter provided by FactSet. YOY = Year over year.

Despite the earnings release revealing a significant decline in key financial metrics compared to the previous year, Deere & Company's stock fell 6% early Thursday, after the maker of agricultural and construction equipment reported fiscal first-quarter earnings that fell sharply from a year ago and issued guidance for further steep sales declines in 2025. The company has been grappling with a weak demand environment, with sales sharply lower across its core operating segments. Last year, it announced plans to cut an undisclosed number of jobs to better align production with demand.

Deere's performance in the first quarter highlights the company's continued focus on optimizing inventory levels of both new and used equipment amidst the uncertain market conditions its customers are facing. The company expects fiscal 2025 net income in the range of $5.0 billion to $5.5 billion, while FactSet expects $5.3 billion. Deere expects sales at its production and precision agriculture division to fall 15% to 20% in fiscal 2025. It expects small agriculture & turf sales to fall 10% and construction and forestry sales to fall 10% to 15%. The guidance does not include any potential impact from tariffs or retaliatory actions by other countries.



In conclusion, the Dow Jones Industrial Average surged over 100 points on Thursday, driven by positive earnings results from Deere & Company and broader market optimism. Despite the earnings release revealing a significant decline in key financial metrics compared to the previous year, Deere & Company's stock fell 6% early Thursday. The company has been grappling with a weak demand environment, with sales sharply lower across its core operating segments. Deere expects fiscal 2025 net income in the range of $5.0 billion to $5.5 billion, with sales projections indicating a challenging year ahead.