Deere beats estimates, expects strong earnings in 2018
U.S. tractor maker Deere & Co forecast strong earnings on Wednesday for the coming fiscal year as it reported fourth-quarter results that exceeded analyst expectations amid improving demand for farm machinery.
Shares of the Moline, Illinois company known for its trademark green tractors rose 5pc in premarket trading and were on track to open at a record high.
Deere forecast net sales for fiscal 2018 to jump 19pc - translating to sales of $35.39 billion - and earnings to rise to about $2.6 billion.
Analysts on average expect 2018 net sales of $28.06 billion and earnings of $2.3 billion, according to Thomson Reuters I/B/E/S.
Deere said equipment net sales in the United States and Canada surged 23pc in the fourth quarter ended Oct. 29, while sales in other markets jumped 30pc.
“We saw higher overall demand for our products with farm machinery sales in South America making especially strong gains and construction equipment sales rising sharply,” Deere Chief Executive Samuel Allen said in a statement.
Net income attributable to the company rose 79pc to $510.3 million or $1.57 per share in the fourth quarter, while total net sales rose 25.5pc to $7.09 billion.
Analysts had expected fourth-quarter earnings of $1.47 per share and sales of $6.99 billion.