Deere & Co. (NYSE: DE) reported Q3 EPS of $2.59, $0.16 worse than the analyst estimate of $2.75. Revenue for the quarter came in at $9.29 billion versus the consensus estimate of $9.21 billion.

Outlook:

Company equipment sales are projected to increase by about 30 percent for fiscal 2018 and by about 21 percent for the fourth quarter compared with the same periods of 2017. Of these amounts, Wirtgen is expected to add about 12 percent to Deere sales for both the full year and fourth quarter. Foreign-currency rates are not expected to have a material translation effect on equipment sales for the year but are anticipated to have an unfavorable effect of about 3 percent for the fourth quarter.

Net sales and revenues are expected to increase by about 26 percent for fiscal 2018 with net income attributable to Deere & Company forecast to be about $2.360 billion. The company’s net income forecast includes $741 million of provisional income tax expense associated with tax reform, representing discrete items for the remeasurement of the company’s net deferred tax assets to the new U.S. corporate tax rate and a one-time deemed earnings repatriation tax. Adjusted net income attributable to Deere & Company, which excludes the provisional income-tax adjustments associated with tax reform, is forecast to be about $3.1 billion. (Information on non-GAAP financial measures is included in the appendix.)

The current outlook for adjusted net income compares with previous guidance of $3.1 billion, which included $803 million of provisional income tax expense.

“We continue to believe Deere is well-positioned to capitalize on growth in the world’s agricultural and construction equipment markets,” Allen said. “Replacement demand for large agricultural equipment is driving sales even in the face of tensions over global trade and other geopolitical issues. At the same time, we are heartened by our customers’ enthusiastic response to the advanced features and technology found on our new products. What’s more, the powerful global trends of population growth and increased urbanization remain quite vibrant and are putting a positive light on the company’s prospects for the future. As a result, we’re confident Deere is on track to continue its strong performance and deliver significant value to customers and investors in the years ahead.”

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