Deere & Co. (NYSE: DE) reported Q1 EPS of $0.61, $0.07 better than the analyst estimate of $0.54. Revenue for the quarter came in at $4.7 billion versus the consensus estimate of $4.67 billion.

"John Deere has started out the year on a positive note in the continued face of soft market conditions,\" said Samuel R. Allen, chairman and chief executive officer. "Although the quarter"'s sales and earnings were somewhat lower than last year, all of our businesses remained solidly profitable. Deere's performance showed further benefits from the sound execution of its operating plans, the strength of a broad product portfolio and the impact of a more flexible cost structure. At the same time, we are seeing signs that after several years of steep declines key agricultural markets may be stabilizing."

Company Outlook & Summary

Company equipment sales are projected to increase about 4 percent for fiscal 2017 and be up about 1 percent for the second quarter compared with the same periods of 2016. Foreign-currency rates are not expected to have a material translation effect on equipment sales for the year or second quarter. Net sales and revenues are projected to increase about 4 percent for fiscal 2017 with net income attributable to Deere & Company of about $1.5 billion.

During the fourth quarter of 2016, the company announced voluntary employee-separation programs in the U.S. as part of an effort to reduce operating costs. Total pretax expenses related to the programs are estimated to be $111 million. Of this amount, $11 million was recorded in the fourth quarter of 2016, $94 million was recorded in first-quarter 2017, and $6 million is to be recognized over the remainder of the year. Savings from the separation programs are expected to be approximately $70 million in 2017.

"Deere continues to perform far better than in agricultural downturns of the past," Allen said. "This reflects our ongoing success developing a more durable business model and a wider range of revenue sources. What\'s more, our efforts to improve operating efficiency are gaining traction and we remain confident that we can deliver at least $500 million of structural cost reductions by the end of 2018. These actions reinforce our belief that Deere is well-positioned to deliver significant value to customers and investors in the future."

For earnings history and earnings-related data on Deere & Co. (DE) click here.