Shares of Deere & Company (DE 0.68%) jumped more than 10% on Friday morning after the agriculture and industrial equipment manufacturer reported better-than-expected quarterly results.
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.
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.
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.