Deere Stock Reaps Gains on Strong Q4 Report
Shares of Deere & Co. stock were up 3% in morning trading today after the company thrashed analyst estimates for fourth-quarter revenue and earnings. Management also issued surprisingly strong guidance for fiscal 2014.
Revenue fell 3% to $9.451 billion in Q4, resulting in $2.11 of profit per share. Analysts had been looking for $8.68 billion and $1.89 a share, respectively. For the full year, Deere revenue grew 5% to $37.795 billion. Per-share earnings improved 19% to $9.09. Both figures easily surpassed Wall Street's targets.
"During the year, Deere continued with a record number of product introductions and completed seven new factories, in Brazil, Russia, India and China," Samuel R. Allen, Deere & Co. chairman and chief executive officer, said in a statement. "These products and additional capacity are essential to helping the company expand its global customer base and realize its long-term business objectives."
Looking ahead, Deere acknowledged some challenges to the agricultural business that feeds its coffers. Sales of agriculture and turf products are expected to fall 6%. The good news? Construction and forestry sales are expected to improve 10%. All told, management forecasts $3.3 billion in 2014 profit. Wall Street had been targeting just $3.04 billion, according to estimates from Thomson Reuters I/B/E/S.
The article Deere Stock Reaps Gains on Strong Q4 Report originally appeared on Fool.com.Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.