Deere (NYSE:DE) beat the Street on Wednesday with a 5% bump in fiscal first-quarter profits amid stronger equipment sales.
Shares of the world’s largest farm-equipment maker advanced more than 1% on the stronger-than-expected results.
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Deere said it earned $681.1 million, or $1.81 a share, last quarter, compared with a profit if $649.7 million, or $1.65 a share, a year earlier. Analysts had called for EPS of just $1.52.
Global sales, including finance revenue, ticked up 3% to $7.65 billion. Equipment sales increased 2.3% to $6.95 billion, exceeding consensus calls for $6.62 billion.
"With another record quarter, John Deere has started 2014 on a strong note," Deere CEO Samuel Allen said in a statement.
Looking ahead, Deere maintained its fiscal 2014 guidance, calling for net income of about $3.3 billion on a 3% drop in equipment sales. Wall Street is anticipating net income of $3.14 billion for the full year.
For the fiscal second quarter, management sees equipment sales slumping 6% year-over-year.
"Even in the face of moderating demand for agricultural equipment, Deere is well-positioned to deliver solid performance," Allen said.
Moline, Ill.-based Deere saw its shares gain 1.65% to $88.90 ahead of Wednesday’s opening bell.