The Board of
Deere & Company
) has sanctioned the repurchase of additional common stock of up
to $8 billion on top of its prior repurchase authorization of $5
billion, initiated in May, 2008.
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The company's shares shot up as much as around 5% following the
news release. The stock eventually closed at $85.38 yesterday,
gaining around 3%.
Under the previous $5 billion share repurchase program, Deere has
repurchased around $4 billion. As of Oct 31, 2013, there were
around 375 million shares outstanding. Buybacks will be made in
the open market at the company's discretion.
In addition to share buyback, Deere also announced a regular
quarterly dividend of 51 cents a share. The dividend will be paid
on Feb 3, 2014, to shareholders of record as of Dec 31, 2013.
These programs are in sync with Deere's commitment to create
long-term value for investors.
Deere, which belongs to the industrial products sector alongwith
) reported fourth-quarter fiscal 2013 (Oct 31, 2013) earnings per
share of $2.11, up 21% year over year and surpassing the Zacks
Consensus Estimate of $1.89. Deere's worldwide total sales
decreased 3% year over year to $9.45 billion in the reported
quarter. Revenues also beat the Zacks Consensus Estimate of $8.8
Deere expects equipment sales to decline around 2% year over year
for the first quarter of fiscal 2014. For the full year, the
company retains its equipment sales estimate of a decline of 3%.
Deere projects net income of $3.3 billion for fiscal 2014.
Moline, IL-based Deere is engaged in the production and
distribution of agricultural and forestry equipment, construction
equipment and engines worldwide. The company sells products in
the U.S. and Canada through branch offices as well as through
distributors and dealers for the resale of products
Deere currently holds a Zacks Rank #3 (Hold).
Stocks in the same sector with a favorable Zacks Rank are
) holding a Zacks Rank #1 (Strong Buy), and
Alamo Group, Inc.
) carrying a Zacks Rank #2 (Buy).