Farm and construction machinery maker Deere & Company (
) on Wednesday said its third quarter profit surged 47% from last
year, beating analyst expectations.
The Moline, Illinois-based company reported fiscal third quarter
net income of $617 million, or $1.44 per share, compared with $420
million, or 99 cents per share, in the year-ago period. Sales
jumped 16% from last year, to $6.84 billion.
On average, Wall Street analysts expected a smaller profit of
$1.24 per share, on lower revenue of $6.52 billion.
Looking ahead, the company said it expects industry-wide
agricultural equipment sales in the U.S. and Canada to rise 5% to
10% this year, but cautioned that Western Europe sales would fall
15% to 20% amid weakness in the livestock and dairy sectors
Deere shares fell 99 cents, or -1.5%, 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 1.78%, based on last night's closing stock price of
$67.23. The stock has technical support in the $60 price area. If
the shares can firm up, we see overhead resistance around the
$70-$73 price levels. 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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