The Moline, IL-based company reported fiscal Q3 earnings of $1.55 per share, easily beating out analyst’s view of $0.61. Sales fell 14.3% from last year to $5.86 billion, falling short of estimates for $6.03 billion.
Looking ahead, DE said its Q4 sales would fall 8% to $5.46 billion, which is in-line with analyst expectations of $5.44 billion. For the full-year 2016, the company lifted its profit estimate to $1.35 billion from $1.2 billion, but lowered its sales outlook to -10% from a prior projection of -9%.
From the press release:
“John Deere’s performance in the third quarter reflected the continuing impact of the global farm recession as well as difficult conditions in construction equipment markets,” said Samuel R. Allen, chairman and chief executive officer. “All of Deere’s businesses remained profitable with the Agriculture & Turf division reporting higher operating profit than last year. As in past quarters, our results benefited from the sound execution of our operating plans, the impact of a broad product portfolio, and our success keeping a tight rein on costs and assets.”
Deere shares rose $2.56 (+3.33%) to $79.50 in premarket trading Friday. Prior to today’s report, DE had gained about 1% on the year, badly trailing the S&P 500’s 7% rise in the same period.