Deere beats across the board and raises its profit forecast
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The farming-equipment maker reported earnings $2.49 a share, easily beating the $1.68 that was expected by the Bloomberg consensus. Revenue came in at $8.29 billion, topping the $7.27 that analysts were anticipating.
"John Deere reported strong results in the second quarter as market conditions showed signs of further stabilization," Chairman and CEO Samuel R. Allen said in the earnings release. "We are seeing modestly higher overall demand for our products, with farm machinery sales in South America experiencing a strong recovery.
In addition to beating on both the top and bottom lines, Deere raised its 2017 profit forecast. The company now expects sales to rise 9% through October, up from its earlier estimate of about a 4% increase. Deere sees net income of about $2 billion, up from its previous estimate of around $1.5 billion.
The strong results are further evidence Deere is seeing further stabilization in the industry. The company has been sounding the alarm on a "global farming recession" which has weighed on results over the past several quarters.
In last quarter's release, Allen noted that the worst of that recession may be over.