Deere & Company (NYSE:DE, XETRA:DCO) reported fiscal third-quarter earnings that beat analyst estimates on both revenue and profit, sending shares up more than 7%.
The agricultural and construction equipment maker posted revenue of $11 billion, above estimates of $10.74 billion and up 6% from a year earlier. Earnings per share came in at $5.10, topping expectations of $4.71 and rising 7% year-over-year. Net income reached $1.4 billion, also up 7% and ahead of the $1.27 billion analysts had forecast.
Construction and Forestry sales were a standout, climbing 18% year-over-year to $3.6 billion. Total operating profit rose 18% to $1.9 billion, while operating cash flow came in at $3.3 billion.
Deere raised its full-year net income guidance to a range of $4.75 billion to $5 billion, citing improved performance across several segments.
By segment, the company now expects Construction Equipment net sales to grow 5% to 10% and Compact Construction Equipment to rise around 5%. Global Roadbuilding sales are projected to increase roughly 10%, while Global Forestry sales are expected to decline about 10%.
Large Ag sales are forecast to fall 15% to 20%, while Small Ag and Turf sales are expected to range from flat to up 5%.
Within Construction and Forestry, net sales are projected to grow around 20%, aided by a 1.5% currency tailwind and roughly 3% in price gains. Small Ag and Turf net sales are expected to rise about 15%, with a 0.5% currency benefit and 1.5% from price. Production and Precision Ag net sales are forecast to decline about 10%, partially offset by a 2.5% currency tailwind and 1% from price.
Financial Services net income is expected to total approximately $870 million for the year, with the segment posting net revenue of $219 million in the third quarter, up 7% from a year earlier.