Deere & Company Earnings: Revenue Strengthens for Fifth Straight Quarter by Double-Digits

S&P 500 (NYSE:SPY) component Deere & Company (NYSE:DE) reported net income above Wall Street’s expectations for the first quarter. Deere & Company provides products and services for agriculture, forestry, construction, landscaping, and irrigation.

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Deere & Company Earnings Cheat Sheet for the First Quarter

Results: Net income for the farm and construction machinery company rose to $532.9 million ($1.30 per share) vs. $513.7 million ($1.20 per share) in the same quarter a year earlier. This marks a rise of 3.7% from the year earlier quarter.

Revenue: Rose 10.6% to $6.77 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Deere & Company beat the mean analyst estimate of $1.23 per share. It beat the average revenue estimate of $6.49 billion.

Quoting Management: “By completing another quarter of record performance, John Deere has started 2012 on a strong note,” said Samuel R. Allen, chairman and chief executive officer. “These results are evidence of the skillful execution of our operating and marketing plans. They also reflect an enthusiastic response by customers worldwide to our advanced lines of equipment. Maintaining such a high level of execution is especially noteworthy as we move ahead with major new-product launches and significantly expand our global market presence.”

Over the last year, Allen pointed out, Deere introduced a record number of products and announced plans to build seven new factories throughout the world. The company also expanded or modernized additional locations in the U.S. and other countries.

Key Stats:

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 46.4% and in the third quarter of the last fiscal year, the figure rose 15.4%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 18 cents in the fourth quarter of the last fiscal year, by one cent in the third quarter of the last fiscal year, and by 6 cents in the second quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from $2.32 a share to $2.53 over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $7.16 per to share to $7.78.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com