Deere & Co. surprised analysts to the upside reporting an increase in both earnings and revenue for 1Q07. By the numbers, the world's largest maker of agricultural and building equipment reported a profit of $239 million, good for EPS of $1.04, up from a profit of $224 million (EPS of $0.94) a year earlier. Revenue rose 5% to $4.43 billion from the year earlier period. Thomson Financial consensus estimates were for EPS of just $0.79 on revenue of $3.85 billion. Despite an ongoing housing slump impacting Deere's sales volume to U.S. homebuilders, higher volumes outside the region from the company's agricultural equipment, construction and forestry operations more than made up for it. Looking ahead,
Deere expects to earn $2.28-$2.39 a share for the second quarter and $6.09 a share for the year. Consensus estimates were for $2.26 for the upcoming quarter and $6.29 for the year.
• Sources: Press Release, TheStreet.com, Reuters
• Commentary: Why Durable Competitive Advantage Matters • M&A Roundup: Deere In Private Equity Headlights, IPOs In Flight • Deere Reports Earnings Growth But Warns of Slowdown
• Stocks and ETFs to watch: Deere & Co. (DE). Competitors: Caterpillar (CAT), Joy Global (JOYG), Manitowoc (MTW), AGCO (AG), Toro Company (TTC)
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