Deere & Company (NYSE: DE) advanced Friday after Deere exceeded expectations on the top and bottom lines in its latest quarter. The agricultural machinery maker reported per-share earnings of $6.55 on revenue of $11.4 billion. That was greater than $5.57-per-share profit forecasted by analysts polled by Refinitiv, and the consensus revenue estimate of $11.28 billion.
Said CEO John May, "Deere's first-quarter performance is a reflection of favorable market fundamentals and healthy demand for our equipment as well as solid execution on the part of our employees, dealers, and suppliers to get products to our customers. We are, at the same time, benefiting from an improved operating environment, which is contributing to higher levels of production."
Net income attributable to Deere & Company for fiscal 2023 is forecast to be in a range of $8.75 billion to $9.25 billion .
Small agriculture and turf sales increased for the quarter due to price realization and higher shipment volumes, partially offset by the negative effects of foreign currency translation. Operating profit improved primarily as a result of price realization and improved shipment volumes. These items were partially offset by higher production costs, increased SA&G and R&D expenses, and the unfavorable effects of foreign currency exchange.
Fiscal-year 2023 net income attributable to Deere & Company for the financial services operations is forecast to be $820 million . Results are expected to be lower than fiscal year 2022 due to less-favorable financing spreads, higher SA&G expenses, and lower gains on operating-lease dispositions.
DE shares hiked $23.37, or 5.8%, to $426.37.
