Deere Rallies on Strong Results, Raised Guidance
Deere (DE:US) shares trade higher on Friday after the farm equipment manufacturer reported strong results for its second fiscal quarter.
The company reported earnings per share of $9.65 on net sales of $16.08 billion. Overall, sales rose 34% year-over-year to easily top the analyst estimate of $14.85 billion.
The outperformance was driven by Deere’s Production and Precision Agriculture unit, which saw sales rise 53% YoY. Sales in the Construction and Forestry business unit jumped 23% to $4.11 billion, ahead of the expected $3.82 billion.
“As shown by the company’s outstanding second-quarter results, Deere continues to benefit from favorable market conditions and an improving operating environment,” said John C. May, chairman and chief executive officer.
“Based on Deere’s results to date, it’s clear we are well on our way to another year of exceptional achievement,” May added.
As a result, Deere hiked its full-year profit outlook to a range of $9.25 billion to $9.5 billion, up from the previous $8.75 - $9.25 billion. Analysts were expecting an FY net income of $8.92 billion.
The Production and Precision Agriculture sales are expected to rise 20% year-over-year.
Congress members Ro Khanna and Josh Gottheimer have been actively trading Deere shares in recent months. Most recently, both Congress members were selling the stock. Rep. Khanna reported the $15,000 - $50,000 sale worth of Deere shares in early February, taking advantage while the stock was still trading above the $400 handle.
Overall, Deere shares are down around 9% year-to-date.