Credit: Shutterstock photoDeere ( DE ) reported earnings early Friday that topped views, but adjusted revenue came up short for the maker of farm, forestry and road construction equipment.
[ibd-display-video id=3151711 width=50 float=left autostart=true] Estimates : EPS to surge 90% to $1.16 with adjusted revenue climbing 36% to $6.4 billion, according to Zacks Investment Research.
Results : Deere earned $1.31 a share, but net equipment sales grew 27% to $5.97 billion, below views. Agriculture and turf sales increased 18%. Construction and forestry sales jumped 57%, with Wirtgen adding 23%.
Outlook: Deere sees equipment sales up 29% in fiscal 2018, including a 30%-40% jump in fiscal Q2. Much of that reflects that addition of its recent Wirtgen takeover. Analysts expect a 23% revenue rise in Q2 to $9 billion, but it's unclear if Wirtgen sales are included in that estimate.
The Wirtgen acquisition expands Deere into the road construction business that stands to gain massively from President Trump's infrastructure spending plans.
Stock : Shares rose 0.7% to 167.87 in morning trade on the stock market today . They rallied 1.9% to 166.81 Thursday, rising further above their 50-day moving average as well as buying territory. Caterpillar ( CAT ) rose 0.1%. Manitowoc ( MTW ) and Terex ( TEX ) fell a fraction.
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The tractor and machinery maker benefited in 2017 from improving farm and construction markets, seeing especially strong gains in South America.
Shares of Deere surged 50% over the past year on the back of a rebound in commodities and a stronger global economy. A weak dollar has also acted as tailwind for U.S. multinationals.
Last month, construction gear giant Caterpillar crushed quarterly estimates again , seeing robust sales across global markets.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
