Farm and construction equipment maker Deere & Company (
) said Wednesday that its second quarter profit gained almost 16%
from last year, helped by a big jump in construction and forestry
The Moline, IL-based company reported fiscal second quarter net
income of $547.5 million, or $1.28 per share, compared with $472.3
million, or $1.11 per share, in the year-ago period. Excluding
one-time costs, adjusted profit was $1.58 per share.
Total sales rose 6% from last year, to $7.13 billion.
On average, Wall Street analysts expected a much smaller
adjusted profit of $1.09 per share, on lower sales of $6.62
Looking ahead, the company boosted its full-year 2010 earnings
forecast to $1.6 billion, up from a prior view of $1.3 billion.
Deere cited a rebound in building markets for the improved
Deere shares rose $1.69, or +3%, in premarket trading
The Bottom Line
We had removed shares of DE from our "recommended" list Aug.6,2008,
when shares were trading at $66.67. The company has a dividend
yield of 1.96%, based on last night's closing stock price of
$57.16. The stock has technical support in the $52 price area. If
the shares can firm up, we see overhead resistance around the $62
price level. We would remain on the sidelines for now.
Deere & Company (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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