Deere & Company Earnings And Outlook Blow Away Expectations
- Author: Zachary Reyes May 20, 2017,
May 20, 2017, 0:03
Net income for the quarter to April 30 rose to $802.4 million, or $2.49 a share, from $495.4 million, or $1.56 a share, in the same period a year ago.
Sales in construction and forestry equipment rose 7 percent in the quarter and Deere expects those numbers to jump about 13 percent for the year.
Latin America is Deere's third-biggest market, accounting for about 9 percent of its total equipment sales. For the first six months of the year, net income attributable to Deere & Company was $996.2 million, or $3.10 per share, compared with $749.8 million, or $2.36 per share, last year.
Deere's worldwide sales of agriculture and turf equipment are forecast to increase by about 8 percent for fiscal-year 2017, with currency translation not expected to have a material effect.
Deere and Company is seeing an increase in earnings once again as company leaders have released it's second-quarter earnings report. It now sees 2017 sales gaining 9% to around $25.5 billion, up from a prior forecast of 4% growth, and well ahead of analysts' view of $24.16 billion.
Analysts on average were expecting earnings of $1.68 cents per share on revenue $7.32-billion, according to Thomson Reuters I/B/E/S.
Looking ahead, DE forecast Q3 revenues to rise 18% to about $6.92 billion, well ahead of Wall Street's $6.24 billion outlook.
Groups representing American farmers have expressed concern over President Trump's promise to renegotiate the North American Free Trade Agreement, which has largely been a boon for American farmers since it was implemented in 1994.