Deere stock bounces after profit more than doubles, beats expectations by wide margin

Shares of Deere & Co. (DE) bounced 3.0% in premarket trading Friday, after the maker of agriculture, construction and forestry equipment reported fiscal first-quarter profit and revenue that beat expectations by wide margins. All segments saw both higher shipment volumes and higher pricing, leading to a net income of $1.96 billion, or $6.55 a share, for the quarter to January 29th. This was more than double the year-ago period’s $903 million, or $2.92 a share. The FactSet consensus for earnings per share was $5.57.

Revenue for the period was $12.65 billion, well above the FactSet consensus of $11.34 billion. Production and precision agriculture sales rose 55% to $5.20 billion, small agriculture and turf sales increased 14% to $3.00 billion, and construction and forestry sales climbed 26% to $3.20 billion.

For fiscal 2023, the company nudged up its sales outlook for production and precision ag sales growth to about 20%, up from 15% to 20%, and for construction and forestry to up 10% to 15%, up from up about 10%.

The stock, which closed Thursday at a three-month low, has been on a downward trend over the past three months, slipping 2.4% while the S&P 500 (SPX) has gained 3.6%.

The positive news from Deere & Co.’s first quarter report came as a welcome surprise to investors, who have been closely monitoring the company’s performance over the past few months. The company’s strong results demonstrate its ability to remain resilient even in the midst of a challenging economic climate.

The company’s success can be attributed to its diverse product portfolio and its ability to adjust to changing market needs. Deere & Co. is able to take advantage of the increased demand for agricultural and construction equipment, as well as the increased demand for precision agricultural solutions.

The company’s strong performance in the first quarter is also a testament to its commitment to innovation and its ability to develop new solutions to meet customer needs. Deere & Co. has invested heavily in research and development, which has allowed the company to stay ahead of the curve and develop new products and services.

Deere & Co.’s success in the first quarter is a positive sign for the company’s future prospects. With the company’s strong product portfolio and its commitment to innovation, Deere & Co. is well-positioned to continue to deliver strong results in the future. The company’s first quarter performance is a strong indication that the company is on the right track and that it is well-positioned to take advantage of the opportunities that the future holds.


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