leadf
logo-loader
viewDeere & Company

Deere reports unexpected rise in 1Q profits, citing US farm industry 'stabilization' after trade war

It earned net income of $517 million, or $1.63 per share, up $1.54 per share from last year, versus analysts' estimate of $1.26

Deere & Company - Deere & Company says US farming industry showing early signs of stabilization after reporting unexpected rise in first-quarter profits
The farm-equipment manufacturer reiterated its full-year earnings forecast of $2.7 billion to $3.1 billion in profit

Deere & Company (NYSE:DE) on Friday said the US farming industry, stung by the Trump administration’s trade war with China, is now showing early signs of stabilization. 

And as a result, the farm-equipment manufacturer reported better-than-expected fiscal first-quarter results, underscored by a surprise rise in profits.

“John Deere’s first-quarter performance reflected early signs of stabilization in the U.S. farm sector,” CEO John May said in a statement. “Farmer confidence, though still subdued, has improved, due in part to hopes for a relaxation of trade tensions and higher agricultural exports.”

READ: Deere’s earnings miss on ‘unsettled trade conditions’ in key markets

Following Deere’s upbeat earnings announcement, its stock jumped 6.4% to $176.50 a share in pre-market trading in New York. 

For the quarter ended February 2, Deere earned net income of $517 million, or $1.63 per share, up from $498 million or $1.54 per share last year. Analysts estimated EPS of $1.26.

Revenue slumped 4.4% to $7.63 billion but beat the $6.41 billion that was expected. The results include a $127 million pretax charge related to a voluntary employee-separation program.

The Moline, Illinois-based company reiterated its full-year earnings forecast. 

Deere said its 2020 profit would range from $2.7 billion to $3.1 billion, as it forecast worldwide sales of agriculture and turf equipment to drop 5% to 10% and worldwide construction and forestry sales to drop 10% to 15%.

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham

Quick facts: Deere & Company

Price: 253.39 USD

NYSE:DE
Market: NYSE
Market Cap: $79.41 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Ascendant Resources drill program continues looking to expand south zone at...

Ascendant Resources (TSE: AND) President and CEO Chris Buncic joined Steve Darling from Proactive with news the company's drill program continues as the look at the South Zone of the Lagoa Salgada Project in Portugal. Buncic telling Proactive they are expecting to have results from this...

3 hours, 46 minutes ago

2 min read