Deere & Co. Touches Record High As Q4 Earnings, Sales Top Estimates
Deere & Co. (DE), a maker of tractors and construction and agricultural equipment, reported fiscal fourth-quarter earnings that topped estimates on Wednesday.
Estimates: Earnings per share of $ 1.44, on revenue of $ 6.911 billion.
Results: EPS of $ 1.57. Revenue rose 23% to $ 8.018 billion.
Outlook: The company forecast net sales and revenues to increase roughly 19% for fiscal 2018. Zacks forecast a 9% increase.
Shares popped 3.5% in premarket trading to a new high on the stock market today. The stock is extended from 124.94 buy point of a cup-with-handle base.
The company said that results in farm and construction equipment showed improvement over the fiscal year, and it singled out strength in South America, as it did when it reported results for the prior quarter in August.
A stronger showing in construction was seen helping the company, Trefis analysts said in an earnings preview.
“The economic fundamentals affecting the construction and forestry industries in North America are cause for continued optimism,” management said on the company’s third-quarter earnings call.
Farmers in recent years have been struggling from lower crop prices. The lower sales have meant they can’t spend as much on the equipment made by Deere and others. But when the company reported fiscal third-quarter earnings, it cited improvement in farm equipment sales and said South America was “experiencing strong gains”.
Meanwhile, Deere’s construction business has been strong. Deere this year announced plans to buy Wirtgen Group, a German company that makes road construction equipment, for nearly $ 5 billion. That transaction was set to be finalized next month, Deere said Wednesday.
Deere & Co. Earnings Top Q3 Views, Sales Miss