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The Board of Deere & Company (DE - Analyst Report) has sanctioned the repurchase of additional common stock of up to $8 billion on top of its prior repurchase authorization of $5 billion, initiated in May, 2008.

The company’s shares shot up as much as around 5% following the news release. The stock eventually closed at $85.38 yesterday, gaining around 3%.

Under the previous $5 billion share repurchase program, Deere has repurchased around $4 billion. As of Oct 31, 2013, there were around 375 million shares outstanding. Buybacks will be made in the open market at the company's discretion.

In addition to share buyback, Deere also announced a regular quarterly dividend of 51 cents a share. The dividend will be paid on Feb 3, 2014, to shareholders of record as of Dec 31, 2013. These programs are in sync with Deere’s commitment to create long-term value for investors.

Deere, which belongs to the industrial products sector alongwith AGCO Corporation (AGCO - Analyst Report) reported fourth-quarter fiscal 2013 (Oct 31, 2013) earnings per share of $2.11, up 21% year over year and surpassing the Zacks Consensus Estimate of $1.89. Deere’s worldwide total sales decreased 3% year over year to $9.45 billion in the reported quarter. Revenues also beat the Zacks Consensus Estimate of $8.8 billion.

Deere expects equipment sales to decline around 2% year over year for the first quarter of fiscal 2014. For the full year, the company retains its equipment sales estimate of a decline of 3%. Deere projects net income of $3.3 billion for fiscal 2014.

Moline, IL-based Deere is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines worldwide. The company sells products in the U.S. and Canada through branch offices as well as through distributors and dealers for the resale of products internationally.

Deere currently holds a Zacks Rank #3 (Hold).

Stocks in the same sector with a favorable Zacks Rank are Kubota Corp. (KUBTY) holding a Zacks Rank #1 (Strong Buy), and Alamo Group, Inc. (ALG - Snapshot Report) carrying a Zacks Rank #2 (Buy).

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