Deere & Company (DE), operating through its subsidiary John Deere, is involved in three segments: agriculture and turf, construction and forestry, and credit. Of the 20 analysts covering the stock, 75% recommend a buy while the remaining rate a hold. There are no sell ratings. On average, analysts estimate a 21.4% upside from current levels.
For its fiscal year that ended on Oct. 31, 2010, the company reported net earnings of $1.87 billion, or $4.35 per share, an increase of 113% from 2009. Meanwhile, total revenue for the year stood at $26 billion. For the first quarter of 2011, Deere reported a profit of $513.7 million, or $1.20 per share, compared to $243.2 million, or $57 cents per share in the year ago period. Revenue escalated 27% to $6.12 billion.
The company's recently announced global projects are likely to expand its global footprint. In mid-January, Deere invested $100 million to build a new factory in India, while in December it announced plans to invest $50 million to build a new factory to manufacture construction equipment to be sold in China and other export markets. During April 2010, the company inaugurated a new $50 million manufacturing and parts distribution facility in South Moscow.Looking ahead, Deere aims to double its annual sales to $50 billion by 2018, fueled by its agricultural and construction equipment. Additionally, led by equipment sales growth of 18%-20%, Deere raised its full-year 2011 net income guidance to approximately around $2.5 billion, topping the old estimate of $2.1 billion and breezing past analysts' estimate of $2.3 billion. The company plans to capture Agco (AGCO) market leading share in South America with a new lineup of machinery for the region. The company's board of directors recently announced a regular quarterly dividend of 35 cents per share, payable on Mar. 2, 2011. Currently, the stock has a dividend yield of 1.6%. >To see these stocks in action, visit the 5 Agriculture Stocks With No Sell Ratings portfolio on Stockpickr.
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