Deere & Company (NYSE:DE), doing business as John Deere, has reported third-quarter sales and earnings that beat analysts’ expectations as it benefited from favorable market conditions and further improvements in its operating environment.
In a statement, the manufacturer of agricultural and other heavy machinery also attributed the improvement to a more stable supply chain and the sound execution of its business plans.
Worldwide net sales and revenues increased by 12% to $15.8 billion, with net sales up 9.9% to $14.3 billion, above the consensus forecast of $14.2 billion according to Zacks Consensus Estimate.
Net income increased by 58% to $2.98 billion and diluted earnings per share jumped 66% to $10.20, beating analysts’ consensus of $8.12 per share.
"Deere is well on the way to another year of exceptional achievement due in large part to positive fundamentals in the farm and construction sectors and the unwavering commitment of the Deere team, including our dealers and suppliers," the company’s chairman and CEO John May said.
"Fundamentals are expected to continue fueling solid demand for our equipment, supported by a strong advance-order position. At the same time, through the company's smart industrial operating model, we are delivering differentiated value to our customers, enabling them to do their jobs more profitably and sustainably.”
The company has guided for a full-year net income of $9.75 billion to $10 billion.
Its shares were up 0.5% at $421.03 ahead of the market opening.
Contact the author at stephen.gunnion@proactiveinvestors.com