Reuters
- Shares of Deere climbed 10% on Friday after it announced first-quarter earnings and revenue that beat expectations.
- The company also lifted its 2021 profit forecast, banking on higher equipment sales amidst a recovering global economy.
- Deere reported earnings that came in at $3.87 per share, higher by 137% versus the $1.63 per share during the same period last year.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell
Shares of Deere & Company climbed as much as 10% on Friday after the heavy equipment maker announced first-quarter earnings and revenue that beat expectations. The Moline, Illinois-based company also lifted its 2021 profit forecast, banking on higher equipment sales amidst a recovering global economy.
The company reported earnings that came in at $3.87 per share for the first fiscal quarter ending in January, higher by 137% versus the $1.63 per share during the same period last year. This beats Zacks Consensus Estimate of $2.15 per share.
Its worldwide sales and revenues rose 19% to $9.11 billion compared to the same period last year, while equipment operations net sales were $8.051 billion for the quarter, compared with $6.530 billion in 2020′
“John Deere started 2021 on a strongly positive note,” John C. May, chairman and CEO, said in a statement. “Our results were aided by outstanding performance across our business lineup and improving conditions in the farm and construction sectors.”
For the year ahead, the 187-year-old company said it sees a full-year earnings forecast between $4.6 billion and $5 billion, higher than its November estimate of between $3.6 billion to $4 billion.
Deere, the largest maker of agricultural machinery, at the start of the fiscal year 2021 implemented a new strategy, operating model, and reporting structure. The company's agriculture and turf operations were since divided into two new segments.
The production and precision agriculture segment is now responsible for production-scale growers of large grains, small grains, cotton, and sugar, while the small agriculture and turf segment is responsible for supporting mid-size and small growers and producers.
Overall, Deere now has four reportable segments, including the construction and forestry, and financial services segments.