NEW YORK (TheStreet) -- Deere (DE) reported quarterly results Friday that beat Wall Street's estimates, and TheStreet's Jim Cramer said the company benefited from strength in U.S. construction even as sales to farmers were down.
"J.P. Morgan talked about the dire straits of the farmer," Cramer said, referring to J.P. Morgan's recent downgrade of the stock to the equivalent of a sell rating. The firm said Deere would be hurt by weak demand for Deere's farm equipment.
"There's no dire straits in the construction industry in the U.S.," Cramer said, however. "And [Deere] talked about how constructions' sales for their machines is going up. They're predicting solid profitability. This was a trouncing, not just a beating of the numbers, but a trouncing."
Cramer said that strength in the construction sales was due to higher U.S. housing starts.
"Look, It's a great American company, and my hat's off to them that they could make this much money with ... sales down so much. And so you come back and says 'What happens if things get better for the farmers?' Great beat. Great job. Deere!"
Shares of Deere were changing hands at $92.78, up $3.32, or 3.7%, around 11 a.m. EDT Friday.
Campbell Soup (CPB) also announced better-than-expected quarterly earnings on Friday, and Cramer said the company's organic and natural brand, Bolthouse Farms, helped deliver those results, along with its global baking unit.