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CHICAGO (Reuters) -Deere & Co on Wednesday reported a higher-than-expected quarterly profit on strong sales accelerated by price hikes for its agriculture and construction equipment and forecast higher net income next year.
Shares of the world’s largest farm equipment company rose 4.4% in pre-market trade.
The Moline, Illinois-based company’s net income rose 75% to $2.25 billion, or $7.44 per share, topping a consensus forecast of $7.11 earnings per share, according to Refinitiv.
Higher grain and soybean prices aided the machinery giant’s margins as farmers purchased new equipment or bought parts to upgrade their fleet.
Total net sales and revenue jumped 37% to $15.54 billion. Net sales rose to $14.35 billion, topping estimates of $13.39 billion, according to Refinitiv.
The industrial bellwether expects net income between $8.0 billion to $8.5 billion for fiscal year 2023, along with higher sales.
