John Deere Provides Strong Financial Outlook But Analyst Opinion is Mixed

Agricultural and construction manufacturers are in a global battle to try and make your whole farm one colour or brand. As CNBC’s Jim Cramer said yesterday on the Mad Dash, there were several things that were close about the Deere quarter.” Cramer is a bit hyper but he is definitely more positive on the financial outlook for Deere rather than CAT.  With a record fourth quarter of $807 Million earnings it is nothing for many investors to scoff at.

VIEW NOW: Jim Cramer on The Mad Dash

As expected John Deere CEO, Sam Allen is very positive about the future financial outlook for the all-green company but some analysts question his optimism. If you have a lot of time you can read the entire transcript of the analyst call by CLICKING HERE.

See more: See More John Deere Content

According to Yahoo Finance, the average analyst rating is 3.2 (1=buy, 5 =sell) which is closer to a sell than a buy.  Just for your information, AGCO is a 2.7 and CAT is a 2.5.

In terms of the agricultural side of the business, higher commodity prices have allowed farmers to purchase more high priced iron than ever before.  What happens next with lower corn, soybean and wheat prices will be an interesting developing story that John Deere, investors and farmers will be paying attention to.

 

Shaun Haney

Shaun grew up on a family seed farm in Southern Alberta. Haney Farms produces, conditions and retails wheat, barley, canola and corn seed. Shaun Haney is the founder of RealAgriculture.com. @shaunhaney

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