Deere & Company Shatters EPS Estimates; Stocks Rise (DE)

Before the opening bell on Wednesday morning, Deere & Co. (DE) reported its first quarter earnings, posting a 3% rise in sales over last year’s Q1 figure. 

DE’s Earnings in Brief

Deere reported first quarter revenues of $7.65 billion, up from last year’s Q1 revenues of $7.42 billion; this was higher than analysts’ estimates of $6.62 billion. Net income attributable to Deere was also up from last year, coming in at $681 million compared to last year’s Q1 figure of $650 million. DE’s EPS came in at $1.81, far above last year’s Q1 EPS figure or $1.65, and much higher than analysts’ estimates of $1.53. Looking ahead to the full year, DE sees equipment sales decreasing 3%.

CEO Commentary

Samuel R. Allen, Deere’s chairman and CEO, had the following to say about the company’s Q1: ”With another record quarter, John Deere has started 2014 on a strong note. Our results demonstrate the adept execution of our operating and marketing plans, which are aimed at expanding our global market position and helping our customers throughout the world be more profitable and productive,” he said. “In addition, we are seeing further benefit from efforts to hold the line on costs.”

DE’s Dividend

Deere last announced a dividend raise in February 2013, when it bumped its quarterly payout to 46 cents to 51 cents. With the company’s “record quarter,” and this release blowing estimates out of the water, we will look for a dividend raise announcement in the next few weeks.

Stock Performance

Deere stock was up $1.94, or 2.22%, in pre-market trading. YTD, the company’s stock is down 3.01%.