By Michael Bogan
Deere & Co. (NYSE: DE) posted increasing revenue and profits for the quarter ended April 30, raising its outlook for the third quarter on a better economic environment and firming commodities prices.
The maker of farm and construction equipment said revenue reached $7.13 billion, up 6 per cent from $6.75 billion for the equivalent quarter last year, citing better-than-expected orders for combines and large tractors, especially from customers in Brazil, Argentina and North America. Some of the increase in revenue also came from favorable currency exchange rates and unit-price increases.
Previously sluggish construction equipment sales show signs of firming as dealers sought to restock inventory following previous quarters of delayed restocking amid fears of a deepening in the global recession.
Deere made $547.5 million in profits, or $1.28 per share, for the second quarter, an increase of $75.2 million from $472.3 million, or $1.11 per share, for the second quarter of fiscal 2009.
Excluding special items, the Moline, Ill.-based company generated earnings of $1.58 per share.
Analysts polled by Thomson Reuters expected a profit of $1.09 per share (which excludes special items) on revenue of $6.6 billion, which the company bettered by a wide margin. Shares of Deere jumped on the news, moving 3 per cent higher to close at $58.87 in Wednesday�s trading.
Deere anticipates growing sales in emerging markets of South America, with forecasts of 25 per cent increases in revenue in the region and 11 per cent and 13 per cent overall. Previous guidance included an increase in its revenue range estimate of 11 per cent and 13 per cent, citing firming soybeans and sugar cane prices motivate farmers to spend more on equipment.
Comprising 55 per cent of total sales, North America equipment sales represent key drivers of company growth, which are expected to increase as �healthy farm cash receipts, solid commodity prices and low interest rates� typically adding between 5 and 10 per cent to North America sales for the full year.
After two hikes in net income forecasts, once in the fall of 2009 of $900 million, and again in Feb. 2010 of $1.3 billion, the company now expects net income to reach approximately $1.6 billion.
About BeaconEquity.com
BeaconEquity.com is committed to producing the highest-quality insight and analysis of small cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or �penny stock� market, which has traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.
No comments:
Post a Comment