Deere Swings to Q4 Profit, but Forecast Falls Short (DE)

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Farm and construction equipment maker Deere & Company ( DE ) said Wednesday that it swung to a fourth quarter profit, beating analyst estimates, but a muted full-year outlook sent its shares lower in premarket trading.

The Moline, IL-based company reported fourth quarter net income of $457 million, or $1.07 per share, compared with a net loss of $223 million, or 53 cents per share, in the year-ago period.

Sales surged 35% from last year to $7.2 billion.

On average, Wall Street analysts expected a smaller profit of 95 cents per share, on much lower sales of $6.3 billion.

Looking ahead, the company forecast full-year fiscal 2011 profits of $2.10 billion, which falls well short of analysts' estimate of $2.30 billion.

Deere shares fell 95 cents, or -1.2%, in premarket trading Wednesday.

The Bottom Line
Shares of Deere & Co. ( DE ) have a 1.57% dividend yield, based on last night's closing stock price of $76.34. The stock has technical support in the $69-$70 price area. If the shares can firm up, we see overhead resistance around the $79-$81 price levels.

Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com 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 The NASDAQ OMX Group, Inc.

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