Deere (DE) reported higher-than-expected profits and revenues in the fiscal second quarter. The company manufactures and distributes equipment used in agriculture, construction, forestry, and turf care. Shares of the company rose 1.3% to close at $359.75 on May 21.
Revenues of $12.06 billion surpassed the Street’s estimates of $10.44 billion and jumped 30% from the year-ago period.
Earnings came in at $5.68 per share, beating the consensus estimates of $4.52 per share. Net sales soared 34% year-over-year.
Deere CEO John C. May said, “Our smart industrial operating strategy is continuing to have a significant impact on performance while also helping customers do their jobs in a more profitable and sustainable manner.” (See Deere stock analysis on TipRanks)
Following the fiscal Q2 earnings release, Oppenheimer analyst Kristen Owen assigned a Buy rating and a price target of $416 (15.6% upside potential).
Owen commented, “The company saw volume strength across the portfolio, with favorable mix and strong price realization driving margin expansion in each segment.”
He further added, “While noting strong performance YTD, management expressed expectations of increased supply chain pressures throughout the remainder of the fiscal year.”
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 10 Buys, 2 Holds, and 1 Sell. The average analyst price target stands at $410.23 and implies upside potential of 14% to current levels. Shares have gained 143% over the past year.