NEW YORK (TheStreet) -- Shares of Deere & Co. (DE) were gaining 4.2% to $93.19 in morning trading Friday after the farm machinery company beat analysts' estimates for earnings in the fiscal second quarter.
Deere reported earnings of $2.03 a share for the second quarter, beating analysts' estimates of $1.55 a share for the quarter. Revenue fell 20% year over year to $7.4 billion for the second quarter, compared to analysts' estimates of $7.27 billion for the quarter.
The company said it expects equipment sales to fall 17% in the fiscal third quarter compared to the year-ago quarter, and 19% for the fiscal year
Deere expects net income of $1.9 billion for the fiscal year, up from its previous projection of $1.8 billion.
"John Deere expects to be solidly profitable in 2015, with the year ranking among our stronger ones in sales and earnings despite the pullback in the farm sector," CEO Samuel Allen said in a statement.
TheStreet Ratings team rates DEERE & CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DEERE & CO (DE) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, notable return on equity and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."