Deere's Stock Surges After Big Profit And Sales Beats, Raised Outlook

Shares of Deere & Co. surged 6.5% in premarket trade Friday after the agriculture and construction machinery company reported fiscal second-quarter results that were well above expectations and provided an upbeat outlook. Net income for the quarter to April 30 rose to $802.4 million, or $2.49 a share, from $495.4 million, or $1.56 a share, in the same period a year ago. The FactSet consensus for earnings per share was $1.63. Total revenue increased to $8.29 billion from $7.88 billion, beating the FactSet consensus of $8.02 billion, as financial and other revenue were better than expected while agriculture and turf and construction and forestry revenue were in line with forecasts. For 2017, Deere now expects company equipment sales to increase 9%, compared with previous guidance of 4% growth. "This resilience illustrates our success driving improved operating efficiencies and developing a wider range of revenue sources. It also shows the impact of the company's consistent investments in advanced technology, new products and additional markets," said Chief Executive Samuel Allen. The stock has rallied 9.4% year to date through Thursday, while the S&P 500 has gained 5.7%.