Deere says the global farming recession may be coming to an end
The farming equipment maker reported quarterly earnings of $0.61 versus analysts' expectations $0.55 per share. The company also said sales came in at $4.70 billion for the quarter, above the $4.63 billion projected by analysts.
In addition to the strong results, Deere CEO Samuel Allen said that the farming sector that has been hurting the company was finally bouncing back.
With declining agricultural prices leading to weaker equipment sales, Deere has been sounding the alarm on a "global farming recession" over the past few quarters as an explanation of declining results. The worst of this farming recession, according to Allen, may be over.
"Although the quarter's sales and earnings were somewhat lower than last year, all of our businesses remained solidly profitable," said Allen in a press release accompanying earnings.
"Deere's performance showed further benefits from the sound execution of its operating plans, the strength of a broad product portfolio and the impact of a more flexible cost structure. At the same time, we are seeing signs that after several years of steep declines key agricultural markets may be stabilizing."
Following the news, shares of Deere and Company ticked up in pre-market trading. The stock had jumped 2.9% had as of 7:48 a.m. ET at $112.37 a share.