Deere & Co beat Wall Street estimates for third-quarter revenue on Friday and lifted its full-year earnings forecast on strong demand for farm and construction equipment.
The farm equipment maker now expects net income in fiscal 2021 to be between $5.7 billion and $5.9 billion, up from a range of $5.3 billion and $5.7 billion forecast in May.
“Looking ahead, we expect demand for farm and construction equipment to continue benefiting from favorable fundamentals,” Deere Chief Executive Officer John May said.
Demand has rebounded for farm machine and construction equipment as farmers replace their aging fleets, but pandemic-led disruptions along the supply chain have proved challenging for agricultural equipment makers.
Revenue in the company’s equipment operations rose 32.5% to $10.41 billion. Total revenue jumped 29.2% to $11.53 billion, above analysts’ estimates of $10.31 billion, according to Refinitiv data.
Net income attributable to the company rose to $1.67 billion, or $5.32 per share, in the third quarter, from $811 million, or $2.57 per share, a year earlier.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Subhranshu Sahu)
