Industrials

Deere Earnings Strong, but Outlook Is Nothing to Cheer About

Deere Logo
courtesy Deere & Co.
Deere & Co. (NYSE: DE) reported first-quarter fiscal 2014 results before markets opened Wednesday. For the quarter, the farm and heavy equipment maker posted diluted earnings per share (EPS) of $1.81 on revenues of $7.65 billion. In the same period a year ago, the company reported adjusted EPS of $1.65 on revenues of $7.42 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.53 and $6.62 billion in revenues.

The company continues to expect full-year net income of $3.3 billion on a sales decline of 3%, as well as a drop of 6% in the second quarter. In fiscal year 2013, the company’s revenues totaled $3.54 billion.

The company’s CEO said:

Even in the face of moderating demand for agricultural equipment, Deere is well-positioned to deliver solid performance. We believe that our extensive investments in new products and new markets will provide strong support to our results and keep our strategic plans moving ahead.

Sales in the company’s agriculture and turf division rose 2% year-over-year in the quarter, while construction and forestry equipment sales were up 4%. Deere expects agriculture and turf sales to fall 6% in the 2014 fiscal year, which includes a decline of 5% in agricultural machinery sales. Construction and forestry equipment sales are expected to rise 10% for the year.

Deere actually performed better in its first quarter than it had estimated. The company had been looking for a sales decline of 2% and instead posted a gain of 3%. But Deere’s expected overall softness for the year remains.

Shares of Deere traded up about 2.3% in the premarket Wednesday, at $89.51. The 52-week range is $79.50 to $94.01. Thomson Reuters had a consensus analyst price target of around $87.00 before this report.

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.