Deere's stock jumps after profit more than doubles, beats expectations by wide margin

Deere's stock jumps after profit more than doubles, beats expectations by wide margin

Deere's stock jumps after profit more than doubles, beats expectations by wide margin

Shares of Deere & Co. DE, -3.79% jumped 3.5% in premarket trading Friday, after the construction, agriculture and turf care equipment maker reported big profit and revenue beats for the fiscal first quarter, citing “improving conditions” in the farm and construction sectors, and provided an upbeat full-year outlook. Net income for the quarter to Jan. 31 more than doubled to $1.22 billion, or $3.87 a share, from $517 million, or $1.63 a share, in the year-ago period. The FactSet consensus for earnings per share was $2.16. Revenue rose 19%, to $9.11 billion from $7.63 billion, while the FactSet consensus was for a decline to $7.21 billion. Production and precision agriculture sales rose 22% to $3.07 billion, small agriculture and turf sales grew 27% to $2.52 billion and construction and forestry sales increased 21% to $2.47 billion. The FactSet consensus was for combined agriculture and turf sales of $5.13 billion and construction and forestry sales of $2.13 billion. For fiscal 2021, the company expects construction and forestry sales of $10.5 billion to $11.00 billion, above the FactSet consensus of $9.7 billion. Production and precision ag sales are expected to be $15.5 billion to $16.5 billion and small ag and turf sales are seen at $10.5 billion to $11.5 billion, while total ag and turf sales are expected at $25.4 billion. The stock has rallied 17.5% over the past three months through Thursday, while the S&P 500 SPX, -0.44% has gained 9.3%.