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(Sharecast News) - Agricultural equipment maufacturer John Deere & Co turned in third-quarter results that came in ahead Wall Street expectations on both the top and bottom lines.
John Deere posted earnings of $5.10 per share, comfortably ahead of analyst estimates of $4.69, while revenues rose 5% year-on-year to $12.61bn - significantly above market expectations of $10.81bn.
The Illinois-based firm said its strongerthanexpected third quarter reflected disciplined execution and its ability to manage differing conditions across its main agricultural equipment markets. Stable demand in the US helped underpin performance, while the company continued to navigate softer trading in Brazil and Europe.
Following the beat, Deere narrowed its fullyear net income guidance to $4.75bn to $5.0bn, compared with its previous $4.5bn to $5.0bn range, with the updated outlook now sitting broadly in line with analyst expectations of around $4.87bn.
John Deere also reiterated its view that the current downturn in agricultural equipment demand was nearing its low point.
"Deere delivered a strong quarter, reflecting disciplined execution by our teams and continued resilience across our portfolio," said chief executive John May. "Our performance underscores the strength of our business, supported by stable US market conditions, our ability to manage softer conditions in Brazil and Europe, and our commitment to helping customers succeed."
As of 1325 BST, John Deere shares were up 2.67% in pre-market action at $596.12 each.
Reporting by Iain Gilbert at Sharecast.com
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