Deere & Co. (DE) Tops Q2 EPS by 81c, Sales Beat; Outlook Raised
Deere & Co. (NYSE: DE) reported Q2 EPS of $2.49, $0.81 better than the analyst estimate of $1.68. Revenue for the quarter came in at $8.29 billion versus the consensus estimate of $7.31 billion.
- Improving demand for farm and construction equipment leads to higher second-quarter results.
- Key markets show signs of further stabilization.
- Sound execution, broad business lineup benefit performance.
- Results include gain on sale of partial interest in SiteOne affiliate.
- Full-year earnings forecast increased to $2 billion, on 9% sales gain.
"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."
Company Outlook & Summary
Company equipment sales are projected to increase about 9 percent for fiscal 2017 and to rise about 18 percent for the third 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 third quarter. Net sales and revenues are projected to increase about 9 percent for fiscal 2017 with net income attributable to Deere & Company of about $2.0 billion.
"Deere is demonstrating a continuing ability to produce impressive results through all phases of the business cycle," Allen said. "This resilience illustrates our success driving improved operating efficiencies and developing a wider range of revenue sources. It also shows the impact of the company's consistent investments in advanced technology, new products and additional markets. These actions are leading to strong performance in 2017, and they reinforce our conviction that Deere is well-positioned to deliver significant value to customers and investors over the long term."
For earnings history and earnings-related data on Deere & Co. (DE) click here.