Deere profit beats on strong farm equipment demand, shares jump

Deere beats Street 2Q forecasts
Deere & Company Earnings And Outlook Blow Away Expectations
Author

19 May, 2017

Net sales of the equipment operations were $7.260 billion for the quarter and $11.958 billion for the first six months, compared with $7.107 billion and $11.876 billion for the same periods past year. "It also shows the impact of the company's consistent investments in advanced technology, new products and additional markets", said Chief Executive Samuel Allen.

The upgrade reflected an increase to 9%, from 4%, in the forecast for equipment sales for the year - including a hike to 8%, from 3%, in expected expansion in sales of farm machinery.

Deere now expects fiscal 2017 net income attributable to the company to be about $2-billion, up from $1.5-billion previously.

Deere said it expected fiscal 2017 industry sales of tractors and combined harvesters in South America to increase 20 percent, up from its previous forecast of about 15-20 percent rise, due to improving economic and political conditions in Brazil and Argentina. (DE) on Friday reported fiscal second-quarter net income of $802.4 million.

Analysts on average were expecting earnings of $1.68 cents per share on revenue $7.32 billion, according to Thomson Reuters.

Shares rose 7% in premarket trading as the company topped profit expectations in its second quarter.

Net sales for its worldwide equipment operations were up 2% during the quarter and 1% during the first half of the year in comparison with the same two periods one year ago.

Deere beat last year's quarterly EPS by 60% and the consensus estimate by 48%.


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