Deere earnings more than doubled in its fiscal first quarter, beating estimates on both the top and bottom lines. DE stock rose early Friday as the company gave a bullish outlook for the full year.
Deere Earnings
Year over year, the farm machinery giant posted a 124% EPS jump to $6.55 for the quarter ended Jan. 29, on a 32.2% total revenue surge to $12.652 billion. Analysts were expecting Deere EPS of $5.57 and sales of $12.325 billion.
Deere, in its news release, cited favorable market fundamentals and "healthy demand for farm and construction equipment."
"We are, at the same time, benefiting from an improved operating environment, which is contributing to higher levels of production," CEO John May said in the release.
For fiscal 2023, Deere guided net income of $8.75 billion-$9.25 billion. That is well above FactSet consensus estimates of $8.31 billion.
"Deere is looking forward to another strong year on the basis of positive fundamentals, low machine inventories, and a continuation of solid execution," May added in the release.
DE Stock
Shares of Deere rose 2% to 411 in early trade on the stock market today. DE stock closed Thursday below a falling 50-day moving average and at its lowest level since November. But it's still within a flat base with a 448.50 buy point.
In 2022, Deere faced supply-chain issues and inflation headwinds, which weighed on recent earnings.
