Deere (DE) Beats on Q1 Earnings, Lags Revenue Estimates
Deere & Company DE, the world’s leading manufacturer of agricultural machinery, reported first-quarter fiscal 2018 results, wherein adjusted earnings of $1.31 surpassed the Zacks Consensus Estimate of $1.16.
Revenue: Deere posted revenues of $5.97 billion, which missed the Zacks Consensus Estimate of $6.40 billion.
Outlook: Deere raised its total equipment sales growth outlook for fiscal 2018 to around 29% year over year from the prior guidance of about 22%. The company expects its sales to rise by 30-40% in the second-quarter of fiscal 2018, compared with year-ago periods. Deere stated that Wirtgen acquisition will contribute about 12% to net sales for the fiscal and about 16% for the second quarter. The forecast also includes a positive foreign-currency translation effect of about 3% for the fiscal and about 4% in the second quarter. For fiscal 2018, Deere expects net sales to increase about 25% year over year and projects net income of about $2.1 billion.
Earnings Estimates Revision: The Zacks Consensus Estimate for the first quarter of fiscal 2018 has moved north over the past 7 days. Coming to earnings surprise history, Deere has an impressive track record. In the past 4 quarters, the company has outpaced the Zacks Consensus Estimate on all occasions, with an average beat of 19.52%.
Deere & Company Price and EPS Surprise
Deere & Company Price and EPS Surprise | Deere & Company Quote
Zacks Rank: Currently, Deere carries a Zacks Rank #2 (Buy) which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Market Reaction: Deere’s shares gained around 0.7% in pre-market trading following the release, at the time of this write-up.
Check back later for our full write up on Deere earnings report!
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