Deere Q2 Profit, Revenue Easily Top Estimates; Forecast Raised Significantly (DE)

By Staff,

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Farm and construction equipment maker Deere & Company ( DE ) said Wednesday that its second quarter profit gained almost 16% from last year, helped by a big jump in construction and forestry machinery sales.

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 billion.

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 guidance.

Deere shares rose $1.69, or +3%, in premarket trading Wednesday.

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 ( DE ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: DE , DEERE

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