Deere (DE) solidly beat the Street on Wednesday by logging a 22% rise in fiscal first-quarter profits on stronger-than-expected sales, leading the farm equipment maker to hike its full-year guidance.
After initially rallying around the results, shares of Deere edged lower in premarket trading.
The world’s largest farm equipment maker said it earned $649.7 million, or $1.65 a share, last quarter, compared with a profit of $532.9 million, or $1.30 a share, a year earlier. Analysts had called for EPS of just $1.40.
Revenue jumped 10% to $7.42 billion, easily topping the Street’s view of $6.72 billion. Sales in the U.S. and Canada leaped 18%, while all other sales inched up just 2%.
“With our eleventh consecutive quarter of record earnings, John Deere has started 2013 on a positive note and is setting the stage for another successful year," CEO Samuel Allen said in a statement.
Deere also upgraded its fiscal 2013 revenue target to $3.3 billion from $3.2 billion, compared with consensus calls from analysts for $3.26 billion.
“The near-term outlook is being tempered by uncertainties over fiscal, economic and trade issues that are undermining business confidence and restraining growth,” Allen said.
Shares of Moline, Ill.-based Deere dipped 0.39% to $93.60 in premarket trading despite the earnings beat and upgraded guidance. The stock has rallied almost 9% so far in 2013.