Deere & Company (NYSE:DE) shares moved upward on the last day before Thanksgiving, on the release of fourth-quarter numbers.
The farm equipment giant reported Q4 net sales of $11.33 billion, 16% Y/Y, edging out analysts' average expectation of $10.44 billion. Equipment Operations net sales improved 19% to $10.28 billion, and the Equipment-division operating margin was 13.6%.
Production & Precision Agriculture $4.66 billion (+23% Y/Y), Small Agriculture & Turf $2.81 billion (+17% Y/Y), and Construction & Forestry $2.81 billion (+14% Y/Y).
The Company EPS of $4.12, up from $2.39 posted a year ago, beating the consensus of $3.90. Deere expects a net income of $6.5 billion - $7.0 billion.
For Production & Precision Ag, the Company expects sales to grow by 20% - 25%, Small Ag & Turf sales to expand by 15% - 20%, and sees Construction & Forestry segment increase by 10 - 15%.
Said CEO John May, "Our results reflect strong end-market demand and our ability to continue serving customers while managing supply-chain issues and conducting contract negotiations with our largest union.
"Last week's ratification of a six-year agreement with the UAW brings our highly skilled employees back to work building the finest products in our industries. The agreement shows our ongoing commitment to delivering best-in-class wages and benefits."
A month-long strike by workers at Deere ended just yesterday, with Deere agreeing to an increase in base production pay, bonuses, and improvements in pension funding for the workers.
DE shares climbed $20.16, or 5.8%, at $369.44 first thing Wednesday.
