Please ensure Javascript is enabled for purposes of website accessibility

Why Deere Shares Are Soaring Today

By Lou Whiteman - Updated Feb 19, 2021 at 11:31AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company showed strong momentum in its earnings report.

What happened

Shares of Deere & Company (DE -14.07%) jumped more than 10% on Friday morning after the agriculture and industrial equipment manufacturer reported better-than-expected quarterly results.

So what

Before markets opened today, Deere said it earned $3.87 per share in its fiscal first quarter on revenue of $9.11 billion, including equipment-operations net sales of $8 billion, easily surpassing analyst expectations for $2.16 per share in earnings on revenue of $7.21 billion. The company's total net income was $1.224 billion, more than double the $517 million reported during the same quarter a year prior.

Action shot of farm equipment in the field.

Image source: Getty Images.

CEO John C. May issued a statement saying:

John Deere started 2021 on a strongly positive note. Our results were aided by outstanding performance across our business lineup and improving conditions in the farm and construction sectors. In addition, our smart industrial operating strategy is making a significant impact on the company's results while it also helps our customers be more profitable and sustainable.

The company appears to be benefiting from strong pricing power across its different business segments.

Now what

Deere said it expects full fiscal-year 2021 earnings between $4.6 billion and $5 billion, a significant increase over previous guidance for $3.6 billion to $4 billion for the year.

The company sees growth in all segments and all parts of the world except for Asia, with North American heavy agriculture leading the way.

Deere has exposure to a range of industrial segments, including agriculture and construction, and all seem to be on the upswing heading into 2021.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Deere & Company Stock Quote
Deere & Company
$313.31 (-14.07%) $-51.31

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.