Skip to main content

Deere (DE) said on Friday that its fiscal second-quarter profit and revenue rose and both surpassed analyst estimates, and it raised its outlook for fiscal 2017 equipment sales growth outlook to 9% from 4% earlier.

The farm and construction equipment maker's shares jumped 7% in pre-open trade after Deere said it also expects fiscal 2017 profit to be about $2 billion, up from a previous $1.5 billion expectation.

"We are seeing modestly higher overall demand for our products, with farm machinery sales in South America experiencing a strong recovery," Chief Executive Officer Samuel Allen, said in a press release. "Deere's performance also reflects the sound execution of our operating plans, the strength of a broad product portfolio, and the impact of our actions to develop a more agile cost structure. As a result, we have raised our forecast and are now calling for significantly higher earnings for the full year."

Scroll to Continue

TheStreet Recommends

The company said it earned $802.4 million, or $2.49 cents per share, in the second quarter ended April 30. It earned $495.4 million, or $1.56 cents per share, a year earlier.

Analysts polled by FacSet had a consensus estimate of $1.63 a share on revenue of $7.25 billion.

Read More Trending Articles:

Jim Cramer and the AAP team know what's causing oil prices to decline, and they're telling their investment club members what to do about Apache (APA) Schlumberger (SLB) and Cimarex (XEC) . Get his insights or analysis with a free trial subscription to Action Alerts Plus.