Deere (NYSE: DE) fiscal 2Q profit rises, beats expectations

Northern, WI 5/16/12 (StreetBeat) -- Deere (NYSE: DE) posted a 17 percent spike in profits for the second quarter Wednesday and boosted its outlook for the year, predicting record-high global demand for farm equipment.

The company beat Wall Street expectations on net income and revenue, posting a profit of $1.06 billion, or $2.61 per share, up from $904 million, or $2.12 per share, in the same quarter last year.

Revenue jumped 12 percent to $10 billion, from $8.9 billion, as global net equipment sales increased 13 percent to $9.41 billion.

"Our results are a reflection of positive conditions in the global farm economy, which is continuing to show impressive strength and endurance," Samuel Allen, the company's chairman and chief executive, said in a statement.

Last week, the U.S. Agriculture Department predicted this year's corn production will hit a record 14.8 billion bushels. And corn exports between September and August 2013 are expected to hit 1.9 billion bushels, with demand rising from China.

China became the top market for U.S. agricultural goods last year, purchasing $20 billion in U.S. agricultural exports.

And the unprecedented crop production is showing up in Deere's numbers.

Equipment sales in the U.S. and Canada rose 18 percent, while overseas sales increased 6 percent.

Global sales of agricultural and turf equipment rose 11 percent to $7.74 billion, and construction and forestry equipment sales jumped 26 percent to $1.67 billion. Deere said both businesses got a boost from higher shipment volumes and pricing improvements.

The strong earnings arrive even as unfavorable exchange rates reduced international sales growth by four percentage points.

Financial services revenue rose 3.9 percent to $109.2 million, as the company's credit portfolio improved.

Deere & Co., based in Moline, Ill., said that it still expects equipment sales to increase about 15 percent this year and raised its full-year profit prediction to about $3.35 billion. Deere previously predicted a profit of $3.28 billion.

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LargeCap Stocks to Keep an Eye on Today

Oxford, MS 8/17/2011 (PennyPayDay) – Target (TGT) shares were rising 5.1% to $51.92 after the discount chain said it earned $1.03 a share during the second quarter, beating estimates for 97 cents. Same-store sales grew 3.9% for the three-month period.

Shares of PC maker Dell (DELL) fell in premarket trading Wednesday after the company reported second-quarter revenue that missed analysts' forecasts and it issued a weak outlook.

Deere (NYSE: DE) reported fiscal third-quarter earnings of $1.69 a share on sales that rose 22% to $8.37 billion. Analysts' estimates had called for a profit of $1.67 a share on revenue of $7.5 billion. The agriculture equipment company also raised its full-year earnings forecast to $2.7 billion from its previous guidance of $2.65 billion.

Shares of Abercrombie & Fitch (ANF) were falling 6.4% even though the teen retailer posted second-quarter earnings that exceeded analysts' forecasts by 6 cents at 35 cents a share.

First Solar (FSLR) shares were down 2.8% at $101.50 after the solar panel maker said Jens Meyerhoff, president of the company's utility systems business group and former chief financial officer, will leave the company next month.

Analog Devices (ADI) said fiscal third-quarter earnings rose 10%, but the results missed expectations, and the chipmaker said fourth-quarter revenue could be reduced as the uncertain global economy makes customers more cautious.

Office products retailer Staples (SPLS) posted adjusted second-quarter earnings of 22 cents a share, topping the estimates of analysts.

Sales rose 5.2% to $5.82 billion.

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