Touches Record High As Q4 Earnings, Sales Top Estimates

Cornelia Mascio
Novembre 22, 2017

Estimates: Earnings per share of $1.44, on revenue of $6.911 billion.

With farmers buying equipment again to replenish aging fleet and large agriculture new equipment inventories at near multi-decade lows, some analysts expect any improvement in grain prices to further lift Deere's sales.

Wirtgen, which manufactures road construction and mineral technology equipment, was bought by Deere this year for $5.2 billion. Worldwide net sales and revenues increased 12 percent, to $29.738 billion, for the full year.

USA tractor maker Deere & Co on Wednesday forecast strong earnings for the coming fiscal year, while reporting fourth-quarter results ahead of Wall Street estimates, as it benefits from improving demand for farm machinery.

"Equipment sales are projected to increase by about 22% for fiscal 2018 and by about 38% for Q1 compared with the same periods of 2017", the company said in a press release.

Deere & Company (DE) announced, for fiscal 2018, net sales and revenues are projected to increase about 19 percent, with net income attributable to Deere & Company of about $2.6 billion.

"The economic fundamentals affecting the construction and forestry industries in North America are cause for continued optimism", management said on the company's third-quarter earnings call. Wirtgen's contribution to full-year operating and net profit is expected to be $75 million and $25 million, respectively.

Analysts have forecast first fiscal quarter revenues at $5.41 billion and EPS at $0.93.

Shares of Deere traded up about 2.3% at $142.47 in the premarket Wednesday morning, above a 52-week range of $98.57 to $140.36.

We saw higher overall demand for our products with farm machinery sales in South America making especially strong gains and construction equipment sales rising sharply. The high was posted Tuesday.

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