Many things about this company -- from its performance to growth moves -- look impressive. Let's look at the latest news to see why Deere could be worth your money.
Way to go!
By delivering yet another record quarter, Deere dispelled doubts about weakening equipment demand and economic growth. Its bottom line climbed an impressive 46% from the year-ago period to $670 million. This came on the back of solid revenue growth of 20% to $8.6 billion.
Most of this revenue increase was due to higher equipment sales volumes, while prices contributed just 3%. It shows how robust the demand is for Deere's equipment. Sales in Deere's largest segment, agriculture and turf, climbed 18%, while its construction business sales grew 34% over last year.
Being a global agricultural play, Deere is thus making the most of the agriculture boom. Its expansion plans are also directed toward lucrative markets.
Making it big
Markets outside the U.S. have been significant drivers of Deere's revenues. In its third quarter, equipment sales outside the U.S. and Canada shot up 31% from a year ago. Considering this, Deere's focus on expansion in markets outside the U.S. is indeed a smart move.
This year, apart from several new products, Deere announced plans for six new factories -- all in the emerging markets of China, Brazil, and India. What's interesting here is the attention Deere is paying to Brazil now.
After establishing its agriculture and forestry equipment business there, Deere is now tapping the high-potential Brazilian construction market. It will start building two new construction factories in Sao Paulo next year to manufacture loaders and excavators.
The entire industry has been caught by the storm of rapid growth in the emerging markets, and the latest hot spot is Brazil.
Take the case of crane maker Manitowoc
Clearly, none of the players want to miss out on the big opportunities, and Deere has emerged as one of the leaders in the race.
The Foolish bottom line
Deere's performance is solid proof of the resilience agriculture has shown despite economic uncertainty. Robust crop prices are boosting demand for farm equipment, while the construction boom in the developing regions is fueling demand for construction equipment.
Both these factors are the backbone of Deere's strength, and they are likely to continue. Being an excellent emerging-market and agriculture play, Deere is worth every bit of attention. I like this company, and its strong performance has further strengthened my bullish views on it.
I see no reason that you shouldn't make it a part of your watchlist. Just click here to add Deere to your stock watchlist, and stay updated on its top news and analysis.
Neha Chamaria does not own shares of any of the companies mentioned in this article. Motley Fool newsletter services have recommended buying shares of Cummins. 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.