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Deere & Company (DE) Q2 Earnings & Sales Beat Estimates

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Deere & Company (DE - Free Report) is the world’s leading manufacturer of agricultural machinery with a market capitalization of $35.9 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.

Despite weak global agricultural and construction sectors, Deere continues to perform well driven by ongoing success of developing a more durable business model and a wider range of revenue sources. The company will gain from the implementation of its operating plans and disciplined cost management as well as the impact of a broad product portfolio. Deere also remains optimistic about the long term, based on steady investments in new products and geographies. The company anticipates solid profitability, backed by increased global demand for food, shelter and infrastructure.

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

Estimate Trend & Surprise History

The investors should note that the earnings estimate for Deere for the second-quarter of fiscal 2017 has moved north over the past month. The Zacks Consensus Estimate is currently pegged at $1.70, moving 7% 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 60.50%.

Deere & Company Price and EPS Surprise

 

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

Earnings

Deere posted earnings of $2.49 per share in the second quarter, beating the Zacks Consensus Estimate of $1.70 by a wide margin of 46.5%.

Revenues

Deere reported second quarter revenues from equipment operations of $7.260 billion, surpassing the Zacks Consensus Estimate of $7.244 billion.

Outlook

Deere projects total equipment sales to increase about 9% year over year in fiscal 2017 and to rise about 18% in the third 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 third quarter. For fiscal 2017, Deere expects net sales to increase 9% year over year and projects net income at $2.0 billion.

Zacks Rank

Currently, Deere has a Zacks Rank #2 (Buy) but that could change following Deere’s earnings report which was just released.

Market Reaction: Deere shares gained 9.16% in pre-market trading.

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

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