Deere on Friday reported an unexpected increase in first-quarter profit and retained its full-year earnings forecast as signs of stabilization in the U.S. farm sector offset weak demand for construction machines, sending its shares soaring.
The farm equipment manufacturer reported net income of $517 million, or $1.63 per share, for the quarter ended Feb. 2, up from $498 million, or $1.54 per share, in the same period last year.
Load Error
That compares with the average analyst estimate of $1.26 per share, according to Refinitiv Eikon data.
The Moline, Ill., company still expects net income in 2020 to be in the range of $2.7 billion to $3.1 billion.
The world's largest farm equipment maker's shares were last up 9% at $180.75.
Deere's earnings in the past quarters were buffeted by a nearly two-year-long U.S.-China trade war that hit U.S. agricultural exports, leaving farmers struggling to turn a profit.
But President Donald Trump's interim trade deal with China has raised hopes of a recovery in farm machinery demand.
"Farmer confidence, though still subdued, has improved due in part to hopes for a relaxation of trade tensions and higher agricultural exports," Chief Executive John May said in a statement.
Improved pricing power along with lower production costs and warranty expenses in the latest quarter drove up operating profits at its farm and turf business, which accounts for nearly 60% of Deere's revenue.
https://news.google.com/__i/rss/rd/articles/CBMic2h0dHBzOi8vd3d3Lm1zbi5jb20vZW4tdXMvbW9uZXkvY29tcGFuaWVzL2RlZXJlLXN0b2NrLXNvYXJzLW9uLWFuLXVuZXhwZWN0ZWQtcmlzZS1pbi1wcm9maXRzL2FyLUJCMTBlSFBhP2xpPUJCbmJmY07SAQA?oc=5
2020-02-21 15:00:00Z
52780624582642
Tidak ada komentar:
Posting Komentar