S&P 500 (NYSE:SPY) component Deere & Company (NYSE:DE) reported net income above Wall Street’s expectations for the fourth quarter. Deere & Company provides products and services for agriculture, forestry, construction, landscaping, and irrigation.
Deere & Company Earnings Cheat Sheet for the Fourth Quarter
Results: Net income for the farm and construction machinery company rose to $669.6 million ($1.62 per share) vs. $457.3 million ($1.07 per share) in the same quarter a year earlier. This marks a rise of 46.4% from the year earlier quarter.
Revenue: Rose 20.4% to $7.9 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: DE beat the mean analyst estimate of $1.44 per share. Analysts were expecting revenue of $7.84 billion.
Quoting Management: “John Deere has completed another year of exceptional achievement,” said Samuel R. Allen, chairman and chief executive officer. “Our success reflects a continued pattern of strong customer response to our innovative lines of equipment coupled with the skillful execution of business plans aimed at expanding our global competitive position.”
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 28.2%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 38.9% from the year earlier quarter.
The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the third quarter, by 6 cents in the second quarter, and by 20 cents in the first quarter.
Looking Forward: Expectations for the first quarter of the next fiscal year have not changed from $1.25. The average estimate for the fiscal year is now $6.44 per sh! are, dow n from $6.46 sixty days ago.
Competitors to Watch: AGCO Corporation (NYSE:AGCO), Caterpillar Inc. (NYSE:CAT), Arts-Way Manufacturing Co. Inc. (NASDAQ:ARTW), The Toro Company (NYSE:TTC), Lindsay Corporation (NYSE:LNN), Kubota Corporation (NYSE:KUB), CNH Global N.V. (NYSE:CNH), Alamo Group, Inc. (NYSE:ALG), Manitowoc Company, Inc. (NYSE:MTW), and American Soil Tech., Inc. (SOYL).
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)