Deere & Company (DE) reported a 54% jump in earnings for the fourth quarter helped by the favorable adjustment to income taxes as well as higher revenue. However, the results missed analysts’ expectations. Following this, the stock inched down over 3% in the premarket session.
Net income climbed 54% to $784.8 million or $2.42 per share. Excluding adjustments, earnings for the quarter would have been $748 million or $2.30 per share. Worldwide net sales and revenues increased 17% to $9.42 billion.
Net sales of the equipment operations grew 17.6% to $8.34 billion. The company benefited from a further improvement in market conditions and a favorable customer response to its lineup of advanced products.
Equipment net sales in the United States and Canada increased by 21% for the quarter. Outside of the U.S. and Canada, net sales rose 13% as currency translation had a negative effect of 7% on the sales.
Looking ahead into the fiscal year 2019, the company expects revenue growth of about 7% and net income attributable to Deere & Company of about $3.6 billion. Company equipment sales are projected to increase by about 7% for fiscal 2019 compared with 2018. Foreign-currency rates are expected to have an unfavorable translation effect on equipment sales of about 2% for the year.
For the fourth quarter, sales from Agriculture & Turf rose 3% as higher shipment volumes and price realization offset the unfavorable impact of currency translation. Construction and forestry sales climbed 65% on higher shipment volumes, lower warranty-related claims, and price realization.
For 2019, sales of agriculture and turf equipment are forecast to be up about 3%, including a negative currency-translation effect of 2%. Sales of construction and forestry equipment are anticipated to be up about 15% for 2019. Net income attributable to Deere & Company for the financial services operations is projected to be about $630 million.
Shares of Deere ended Tuesday’s regular session down 2.79% at $138.52 on the NYSE. The stock has fallen over 11% in the year so far while it has risen over 1% in the past year.
Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a
PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the
With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,