Deere & Co . (NYSE:DE) reported third-quarter earnings on Thursday, surpassing analyst consensus expectations, driving its stock up 5.3% in early trading.
The agricultural and construction equipment manufacturer posted adjusted earnings per share of $6.29, beating the analyst consensus of $5.70. Revenue for the quarter came in at $11.39 billion, exceeding estimates of $10.95 billion, despite a 20.3% YoY decline.
Deere maintained its full-year net income forecast of approximately $7 billion, demonstrating resilience in the face of challenging market conditions.
"John Deere's third-quarter results showcase our disciplined execution in the face of challenging conditions in the global agricultural and construction sectors," said John May, chairman and CEO. "Despite facing significant headwinds, our teams have demonstrated resiliency in adapting to market fluctuations."
The company reported that worldwide net sales and revenues decreased 17% to $13.15 billion for the third quarter. Despite the decline, Deere's ability to exceed analyst expectations and maintain its full-year guidance appears to have resonated positively with investors.
May added, "We have taken steps to reduce costs and strategically align our production with customer needs. Although these decisions were difficult, they are vital for our continued success and competitiveness."
Deere's performance comes amid weak global agricultural fundamentals and moderating construction activity. The company's proactive measures to navigate these challenges seem to have bolstered investor confidence, as reflected in the stock's upward movement following the earnings release.