Deere Plows Past Wall Street Estimates on Strong Equipment Demand, Boosted Outlook Lifts Shares
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."
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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.
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