Deere’s Q2 Beats, Shares Up

Deere & Co.’s (DE) second-quarter earnings came in ahead of expectations despite weak sales outside the U.S. and Canada.

The world's largest farm equipment maker posted earnings of $1.11 per share, topping the consensus estimate by 2 cents.

Revenue slipped 17% to $6.75 billion, as equipment sales outside the U.S. and Canada fell 30%.

CEO Robert W. Lane stated that operations dependant on construction activity and consumer spending are feeling the full impact of the global economic downturn.

Meanwhile, Deere reduced full-year net income guidance to $1.1 billion, compared to the previous outlook of $1.5 billion announced in February.

The consensus estimate on the company’s full-year earnings has moved down by 12 cents to $3.19 over the past 30 days as 7 out of 19 covering analysts lowered expectations.

Shares of Deere, a Zacks #3 Rank ("Hold") company, have advanced more than 8% to $47.45 in morning trade on volume of approximately 2.5 million, compared to average daily volume of about 5.7 million.

Read the full analyst report on DE