Published: Sat, May 20, 2017
Economy | By Annette Adams

Deere announces second-quarter earnings

Deere announces second-quarter earnings

The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of $1.70 per share.

The agricultural equipment manufacturer reported second-quarter net income of $802.4 million, compared with $495.4 million for the same period past year.

Golden says after the first quarter, Deere predicted equipment sales would rise 4 per cent for the year, but now has raised its forecast to 9 per cent growth for the year. Second-quarter results also compare to consensus estimates for EPS of $1.68 and $7.31 billion in revenues.

The net income attributable to the company grew by more than $300 million compared to this time a year ago.

Shares in United States machinery-maker Deere & Co rose 7% after it forecast strong sales, helped by demand for tractors in South America.

"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.

Analysts have forecast fiscal year sales of $24.32 billion, about 5% higher than sales of $23.39 billion in 2016. "The company will gain from the implementation of its operating plans and disciplined cost management as well as the impact of a broad product portfolio".

Shares of Deere, which has cut jobs and lowered production due to declining demand for its trademark green tractors and harvesting combines, were up 7.3 per cent at $120.30 in premarket trading. Year-to-date, DE had gained 9.96% prior to today's report, versus a 6.38% rise in the benchmark S&P 500 index during the same period.

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