Deere’s Q2 Profit Jumps 65% on Strong Agricultural Demand (DE)

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Farming and construction equipment maker Deere & Company ( DE ) on Wednesday said its second quarter profit surged 65% from last year, driven by strong demand for its agricultural equipment.

The Moline, IL-based company reported fiscal second quarter net income of $904.3 million, or $2.12 per share, compared with $547.5 million, or $1.28 per share, in the year-ago period.

Revenue rose 25% from last year to $8.9 billion.

On average, Wall Street analysts expected a smaller profit of $2.06 per share, on lower revenue of $8.12 billion.

Looking ahead, the company said it expects full-year 2011 profit to rise 21% to 23% from last year, but noted effects of the Japanese tsunami would hurt results by $300 million.

Deere shares fell $1.26, or -1.5%, in premarket trading Wednesday.

The Bottom Line
Shares of Deere ( DE ) have a 1.61% dividend yield, based on last night's closing stock price of $86.96. The stock has technical support in the $80 price area. If the shares can firm up, we see overhead resistance around the $90-$92 price levels.

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

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