Deere & Company (NYSE:DE) early Friday posted much better than expected fiscal second quarter earnings results and boosted its full-year outlook, sending its shares soaring in premarket trading.
The Moline, IL-based farming and construction equipment maker reported Q2 earnings per share (EPS) of $2.49, which was $0.80 better than the Wall Street consensus estimate of $1.69. Since the disparity between the numbers is so large, it’s likely that DE’s as-reported results don’t compare to Wall Street’s estimate.
Revenues rose 2.2% from last year to $7.26 billion, in-line with analysts’ view for $7.27 billion.
Looking ahead, DE forecast Q3 revenues to rise 18% to about $6.92 billion, well ahead of Wall Street’s $6.24 billion outlook.
Deere also lifted its full-year 2017 revenue guidance. It now sees 2017 sales gaining 9% to around $25.5 billion, up from a prior forecast of 4% growth, and well ahead of analysts’ view of $24.16 billion. It also sees full-year net income of $2 billion, up from $1.5 billion previously.
The company commented via press release:
“John Deere reported strong results in the second quarter as market conditions showed signs of further stabilization,” said Samuel R. Allen, chairman and chief executive officer. “We are seeing modestly higher overall demand for our products, with farm machinery sales in South America experiencing a strong recovery. 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.”
Deere & Company shares rose $5.63 (+5.00%) in premarket trading Friday. Year-to-date, DE had gained 9.96% prior to today’s report, versus a 6.38% rise in the benchmark S&P 500 index during the same period.