Deere’s Q3 Profit Jumps 47% on Higher Revenue (DE)

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Farm and construction machinery maker Deere & Company ( DE ) 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 there.

Deere shares fell 99 cents, or -1.5%, 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 1.78%, 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 ( 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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