Deere & Co reported on Friday a 62 percent jump in quarterly profit, helped by improving demand for its products, and the US farm equipment maker raised its fiscal 2017 financial forecast.
Net sales in equipment operations reached $7.25 billion during the quarter and $11.96 billion for the six months, in comparison to $7.01 billion and $11.9 billion for the same time frames respectively past year.
Deere said it expected fiscal 2017 industry sales of tractors and combined harvesters in South America to increase 20 percent, up from its previous forecast of about 15-20 percent rise, due to improving economic and political conditions in Brazil and Argentina.
Analysts polled by FacSet had a consensus estimate of $1.63 a share on revenue of $7.25 billion.
Deere said it now expects fiscal 2017 net income attributable to the company to be about $2 billion, up from $1.5 billion estimated previously. This was higher than $495.4 million, or $1.56 per share, in last year's second quarter.
Analysts have forecast fiscal year sales of $24.32 billion, about 5% higher than sales of $23.39 billion in 2016.
Worldwide net sales increased 5% Y/Y to $8.287B.
Allen also attributes the uptick to the execution of operating plans, the strength of a broad portfolio, and their desire to develop a more agile cost structure.
David McNew/Getty ImagesDeere & Company reported second-quarter earning that were ahead of Wall Street expectations while raising its profit forecast.