Partially offsetting Deere's exposure to soft agricultural demand, worldwide sales of construction and forestry equipment are expected to increase 10% for the full year.
"The gain reflects further economic recovery and higher housing starts in the U.S. as well as sales increases outside the U.S. and Canada. Global forestry sales are expected to be up for the year due to general economic growth and improved sales in European markets," the company noted.
Sharing in the profits of a housing recovery, Owens Corning (OC) is soaring after the construction supplies company topped full-year estimates.
Owens Corning CEO Mike Thaman said in a statement that the company benefited from "a stable and growing global economy and a recovering U.S. housing market."The Toledo, Ohio-based company reported full-year net income of $1.86 a share, 20 cents above consensus, and revenue 2% higher year over-year to $5.3 billion. "We expect similar growth in 2014 and we are working to maintain the momentum we established last year," Thaman added. Its roofing and insulation segments, in particular, are expected to drive growth on U.S. residential new construction and improved pricing. Owens Corning shares are up 12.9% to $44.85. Must Watch: U.S. Markets Open Higher, Deere and Home Depot in Focus TheStreet Ratings team rates DEERE & CO as a Buy with a ratings score of A-. The team has this to say about their recommendation: "We rate DEERE & CO (DE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, good cash flow from operations, impressive record of earnings per share growth and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
- You can view the full analysis from the report here: DE Ratings Report