Iconic farming, forestry and construction equipment maker Deere reported earnings before the market open Friday beating EPS projections but adjusted revenue was less. $DE sees outlook higher with the Wirtgen acquisition and infrastructure.
Iconic farming, forestry and construction equipment maker Deere reported earnings before the market open Friday beating EPS projections but adjusted revenue was less. Outlook is higher with the Wirtgen acquisition and infrastructure.
$DE earned $1.31 a share beating the estimated EPS of $1.16 but revenue was lower than expected at $5.97, down from adjusted revenue climbing 36% to $6.4 billion
Deere & Co NYSE: $DE
.Premarket $166.81 ▲ 3.53 (2.16%)
Deere benefited in 2017 from improving farm and construction markets,on the back of a rebound in commodities and stronger global economic conditions. $DE saw especially strong gains in South America. Deere has also benefitted, like Caterpillar $CAT, from the weak U.S. dollar who smashed quarterly estimates again.
- Net equipment sales grew 27% to $5.97 billion.
- Agriculture and turf sales increased 18%.
- Construction and forestry sales jumped 57%,
- New aquisition Wirtgen added 23%.
Deere sees equipment sales up 29% in fiscal 2018, including a 30%-40% jump in fiscal Q2. Thet addition of its recent Wirtgen takeover fueling the gains. Analysts had expected a 23% revenue rise in Q2 to $9 billion.
The Wirtgen acquisition has expanded $DE into the road construction business that is in a position to gain massively from President Trump’s infrastructure spending plans.
Competitors include Caterpillar (CAT), Manitowoc (MTW) and Terex (TEX).