Deere To Out Beat Forecast

Deere & Company is also known as John Deere. It is an American organization founded in 1837. The company is one of the largest manufacturer and producer of agricultural machineries in the world. The company sells products which include tractors, balers, planters, sprayers etc. Moreover, the company manufactures forestry equipment, construction equipment, and heavy equipment. The DEERE stock currently stand at $90.37 per share. 

 

In the first quarter of the current fiscal year, the company managed to increase the profit to $681.1 million from $649.7 million. Hence, this further resulted in increase in total net sales and revenues by 3% bringing them up to $7.65 billion. Analysts carried out a poll which predicted the earnings of $1.52 per share on $6.58 billion of sales. However, in the near future, the company expects a fall of 3% in equipment sales but the company’s outlook is about $3.3 million full year profit. The CE of the company, Samuel Allen said “Even in the face of moderating demand for agricultural equipment, Deere is well-positioned to deliver solid performance.” 

In the second quarter of the current fiscal year, the company faced a decline in profits by 9.5% as equipment sales fell down. Apart from this, the top line and bottom line results surpassed the market expectations. The company expected the agricultural equipment sales to decrease in the second quarter. The analysts expected a 7% dip in the sales but the company restricted the decline to 4% only. However, the company supported the earnings outlook. The CE and Chairman further added “We're confident our extensive investments in new products and markets, coupled with a tight rein on costs and assets, will keep the company on a sound financial footing and help sustain our growth plans.” 

On 30^th April, the company reported a decline in earnings by $0.11 per share. Deere posted the earnings of $980.7 million from $1.08 billion. This resulted in decrease in revenues as well by 8.9%. The company holds a strong market position but recent declines in its financial evaluations have casted a doubt for investors. The company increased its profits in the first quarter and faced a significant decline in the second quarter in various segments by huge margins.

Hence, the company believes that 2014 is a very important year for the organization to excel in the industry and outperform. The DEERE stock price today has not increased in recent times as well. Chairman says that “the investments and operating changes we've made — focused on a more flexible cost structure and wider range of revenue sources — will be called on to keep our performance moving ahead.”