logo
  Join        Login             Stock Quote

Deere (DE) 4Q Earnings Rise 3 Pct Yet Miss Estimates; Shares Fall

 November 21, 2012 07:40 AM
 


(By Balaseshan) Deere & Co. (NYSE: DE) reported a 3% increase in quarterly earnings on higher sales of construction equipment and agriculture machines. However, earnings missed Street's expectations, sending its shares down 1.15% in premarket.

Earnings for the fourth quarter were $687.6 million or $1.75 per share, up from $669.6 million or $1.62 per share last year.

Worldwide net sales and revenues grew 14% to $9.79 billion. Net sales of the equipment operations climbed 14% to $9.05 billion from $7.90 billion. Sales included price realization of 4% and an unfavorable currency-translation effect of 3%.

Analysts, on average, polled by Thomson Reuters had expected a profit of $1.88 per share on revenue of $8.85 billion for the fourth quarter.

[Related -Deere & Company (DE) Q3 Earnings Preview: Nothing Runs Backwards Like A Deere]

Equipment net sales in the United States and Canada jumped 26%, while sales outside the U.S. and Canada decreased 2% for the quarter with unfavorable currency-translation effects of 7%.

Agriculture & Turf sales grew 16%, largely due to higher shipment volumes and price realization, partially offset by the unfavorable effects of currency translation. Construction and forestry sales rose 7% mainly due to higher shipment volumes and price realization.

Looking ahead into the first quarter, the company projects company equipment sales growth of about 10%.

For the fiscal 2013, Deere expects earnings of about $3.2 billion and company equipment sales growth of about 5%. Deere's worldwide sales of agriculture and turf equipment are forecast to increase by about 4%. Industry sales for agricultural machinery in the U.S. and Canada are forecast to be about flat for 2013 in relation to the prior year's healthy levels.

[Related -Deere & Company (DE): Short-Term Risks, Long-Term Opportunities]

U.S. and Canada industry sales of turf and utility equipment are expected to be up about 5 percent for 2013, reflecting some improvement in the U.S. economy. Deere's sales are expected to increase more than the industry due to the impact of new products.

Deere's worldwide sales of construction and forestry equipment are forecast to increase by about 8% for fiscal 2013 due in part to modest improvement in U.S. economic conditions. Sales in world forestry markets are projected to be about flat for the year as further weakness in European markets offsets stronger demand in the U.S.

DE closed Tuesday's regular session down 0.30% at $85.99. The stock has been trading between $69.51 and $89.70 for the past 52 weeks.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageThe Chip Maker Short Sellers Should Be Watching

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the read on...

article imageChicago Fed: US Economic Growth Slowed In October

The pace of US growth slowed more than expected in October, according to this morning’s update of the read on...

article imageHoliday Fever Takes Hold Of Stock Investors, But A Pullback Is Needed

With warmer weather arriving to melt the early snowfall across much of the country, investors seem to be read on...

article imageIs 0% Growth For 90% A Successful Economic Model?

Via Greg Mankiw I read the review of Piketty's book by Deirdre McCloskey. The review reminds me of the read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.