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Deere & Co. reported a 23% increase in Q3 net income to a record $537.2 million, or $2.37/share, on a 5.9% rise in revenues to $6.63B. Analysts were expecting $1.99/share on sales of $6.65B. A 30% jump in overseas equipment sales helped offset a 5% decline in North America. DE-EarningsChart-8-15-2007 A weak dollar contributed 6% of the increase in overseas sales growth. Deere forecast full-year net income of about $1.7B (approx. $7.56/share based on 224.98M shares outstanding, compared to analysts' average estimate of $6.98). Equipment sales are expected to increase around 16% in Q4. In a press release, CEO Robert Lane commented, "... the company is well-positioned to benefit from secular economic trends taking shape throughout the world such as growing affluence and increasing demand for food, feed and biofuels." The U.S. markets for construction and forestry equipment are said to be "remaining under pressure" hurt by a "significant downturn" in housing construction. Shares of Deere were last up 2.1% to $119.51 in thin pre-market trading, after losing 1.3% to $117.09 on Tuesday.

Sources: Press release, MarketWatch
Commentary: Earnings Preview: Retailers Will Be Prominent100 Stocks to Offset Rising Food PricesTaking Eric Bolling’s Agriculture Stock Play, Making it My Own
Stocks/ETFs to watch: DE. Competitors: CAT, CNH, KUB, TEX, JOYG. ETFs: VIS, PRFN, DBA

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Source: Deere Q3 Net Up 23%, Easily Beats Street, Sales Mostly In-line