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Deere & Company (DE) Tops Q1 Earnings & Sales

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Deere & Company (DE - Free Report) is the world’s leading manufacturer of agricultural machinery with a market capitalization of $34.8 billion. It also produces a variety of commercial and consumer equipment; and a broad range of construction and forestry equipment. Deere’s financial services primarily provide credit services, which mainly finance sales and leases of equipment by John Deere dealers and trade receivables purchased from the equipment operations.

Deere has been challenged with falling demand for agricultural equipment as lower crop prices take their toll on the U.S farm income. Nevertheless, in the long term the company stands to gain from favorable trends, supported by increasing population and rising living standards. Focus on investments in new products and geographies also remain tailwinds.

Investors have thus been eagerly awaiting the company’s latest earnings report. Let’s have a quick look at the Illinois-based company’s first-quarter fiscal 2017 earnings release.

Estimate Trend & Surprise History

The investors should note that the earnings estimate for Deere for the first-quarter of fiscal 2017 has moved north over the past month. The Zacks Consensus Estimate is currently pegged at 51 cents, moving 2% up over the said timeframe.

Coming to earnings surprise history, Deere has an impressive track record. In the past 4 quarters, the company has outpaced the Zacks Consensus Estimate on all occasions, with an average beat of 58.17%.

Deere & Company Price and EPS Surprise

 

Deere & Company Price and EPS Surprise | Deere & Company Quote

Earnings

Deere posted earnings of 61 cents per share in the first quarter, beating the Zacks Consensus Estimate of 50 cents by a wide margin of 22%.

Revenues

Deere reported first quarter revenues from equipment operations of $4.698 billion, beating the Zacks Consensus Estimate of $4.656 billion.

Outlook

Deere projects total equipment sales to increase about 4% year over year in fiscal 2017 and to rise about 1% in the second quarter of fiscal 2017, compared with year-ago periods. Foreign-currency rates are not expected to have a material translation effect on equipment sales for the year or second quarter. For fiscal 2017, Deere expects net sales to increase 4% year over year and projects net income at $1.5 billion.

Zacks Rank

Currently, Deere has a Zacks Rank #3 (Hold) but that could change following Deere’s earnings report which was just released.

Market Reaction: Deere shares gained 2.78% in pre-market trading.

Check back later for our full write up on this Deere earnings report later!

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