Deere Beats Profit, Sales Expectations

Deere & Co. reported on Friday a fiscal second-quarter profit of $690.5 million, or $2.03 a share, down from $980.7 million, or $2.65 a share, in the same period a year ago, but well above the FactSet earnings-per-share consensus of $1.56. Revenue fell 18% to $8.17 billion, as a 25% decline in agriculturaal and turf sales offset a 2% increase in construction and forestry sales, but beat the FactSet consensus of $7.54 billion. Looking ahead, the construction equipment maker said it expects full fiscal year equipment sales to decline 19% from a year ago and agriculture and turf sales to fall 24%, compared with the company's previous estimate for declines of 17% and 23%, respectively. "John Deere's second-quarter results were noteworthy in light of the weak conditions that continue to affect the global agricultural sector," said Chief Executive Samuel Allen. The stock, which was indicated nearly 2% higher in premarket trade, has edged up 1.1% year to date through Thursday, while the S&P 500 has gained 3.5%.