Deere & Co. (DE) Tops Q1 EPS by 37c, Revenues Beat
Deere & Co. (NYSE: DE) reported Q1 EPS of $1.63, $0.37 better than the analyst estimate of $1.26. Revenue for the quarter came in at $7.63 billion versus the consensus estimate of $6.42 billion.
- Net income rises 4% on 6% decline in net sales.
- U.S. farm sector shows early signs of stabilization.
- Full-year earnings forecast unchanged.
"John Deere's first-quarter performance reflected early signs of stabilization in the U.S. farm sector," said John C. May, chief executive officer. "Farmer confidence, though still subdued, has improved due in part to hopes for a relaxation of trade tensions and higher agricultural exports. At the same time, activity in the construction sector has slowed leading to lower sales and profit for our Construction & Forestry division. Also impacting results in Deere's construction equipment business were our actions to reduce factory production and lower inventories in response to current market conditions. Additionally, the quarter included costs of a voluntary employee-separation program, which is among the steps Deere is taking to improve flexibility and efficiency."
Company Outlook & Summary
"Looking ahead, we are particularly encouraged by the broad use of precision technologies and believe the company is well-positioned to strengthen its leadership in this vital area," May said. "In addition, we are proceeding with a series of measures to create a more focused organizational structure that can operate with greater speed and agility. These steps are leading to improved efficiencies and helping the company focus its resources and investments on areas that have the most impact on performance."
For earnings history and earnings-related data on Deere & Co. (DE) click here.