Investors of Deere & Company DE were pleasantly surprised when the company not only reported better-than-expected EPS and revenue for the third quarter, but also boosted revenue forecast for the full year.
The company reported net earnings of $488.8 million, down from $511.6 million while EPS grew modestly from $1.53 to $1.55 due to lower share count. This was sharply higher than the Street estimates of $0.94 a share.
Similarly, Deere reported worldwide net sales of $6.724 billion representing a drop of 11 percent on year-over-year basis. However, it was still higher than the analysts' predictions of $6.09 billion.
The company's chairman and CEO, Samuel Allen, commented, "All of Deere's businesses remained profitable with the Agriculture & Turf division reporting higher operating profit than last year. As in past quarters, our results benefited from the sound execution of our operating plans, the impact of a broad product portfolio, and our success keeping a tight rein on costs and assets."
Going forward, the company expects equipment sales to fall about 10 percent for fiscal 2016 and about 8 percent for the fourth quarter. For fiscal 2016, Deere now expects net income to be about $1.350 billion.
Following the news, the stock traded up by $1.56, or 2.03 percent, to $78.50.
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