Deere & CompanyDE , the world's leading manufacturer of agricultural machinery, reported first-quarter fiscal 2018 results, wherein adjusted earnings of $1.31 surpassed the Zacks Consensus Estimate of $1.16.
Revenue: Deere posted revenues of $5.97 billion, which missed the Zacks Consensus Estimate of $6.40 billion.
Outlook: Deere raised its total equipment sales growth outlook for fiscal 2018 to around 29% year over year from the prior guidance of about 22%. The company expects its sales to rise by 30-40% in the second-quarter of fiscal 2018, compared with year-ago periods. Deere stated that Wirtgen acquisition will contribute about 12% to net sales for the fiscal and about 16% for the second quarter. The forecast also includes a positive foreign-currency translation effect of about 3% for the fiscal and about 4% in the second quarter. For fiscal 2018, Deere expects net sales to increase about 25% year over year and projects net income of about $2.1 billion.
Earnings Estimates Revision: The Zacks Consensus Estimate for the first quarter of fiscal 2018 has moved north over the past 7 days. Coming to earnings surprise history, Deere has an impressive track record. In the past 4 quarters, the company has outpaced the Zacks Consensus Estimate on all occasions, with an average beat of 19.52%.
Deere & Company Price and EPS Surprise
Zacks Rank: Currently, Deere carries a Zacks Rank #2 (Buy) which is subject to change following the earnings announcement. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Market Reaction: Deere's shares gained around 0.7% in pre-market trading following the release, at the time of this write-up.
Check back later for our full write up on Deere earnings report!
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>