Deere & Co (DE) – Get Free Report posted stronger-than-expected fourth quarter earnings Wednesday, and issued a robust-near term outlook, as the heavy equipment maker continues to capitalize on surging farm demand and firming prices.
Deere said earnings for the three months ending in October, the group’s fiscal fourth quarter, came in at $7.44 per share, up 80% from the same period last year and well ahead of the Street consensus forecast of $7.11 per share. Group worldwide sales, Deere said, rose 37% from last year to $15.54 billion, firmly topping analysts’ forecasts of a $13.39 billion tally.
Looking into the end of the 2022 fiscal year Deer said it sees net income of between $8 billion and $8.5 billion, down from its prior forecast of $7 billion and $7.4 billion.
“Deere’s strong performance for both the fourth quarter and full year is a tribute to our dedicated team of employees, dealers, and suppliers throughout the world,” said CEO John May.
“Deere is looking forward to another strong year in 2023 based on positive farm fundamentals and fleet dynamics as well as an increased investment in infrastructure,” May added. “These factors are expected to support healthy demand for our equipment. At the same time, we have confidence in the smart industrial operating model and our ability to deliver solutions that help our customers be more profitable, productive, and sustainable.”
Deere shares were marked 3.23% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $430.00 each.
Late last month, Deere’s larger rival Caterpillar (CAT) – Get Free Report powered to better-than-expected third quarter earnings thanks in part to price increases and surging industrial equipment demand from the energy and mining sectors.
Caterpillar said adjusted profits for the three months ending in September were pegged at $3.95 per share, up nearly 50% from the same period last year and well ahead of the Street consensus forecast of $3.16 per share. Group revenues, Caterpillar said, rose 21% to $15 billion, a figure that also beat analysts’ estimates of a $14.3 billion tally.
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