Deere & Co. Beats Wall Street Est...
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Jonathan Yates
Deere & Co. Beats Wall Street Estimates

Deere & Co. (NYSE: DE), the farm machinery giant, reported third quarter results that beat Wall Street estimates.

For the third quarter, Deere & Co. reported earnings of $997 million, or $2.56 a share.  Revenue climbed by 4% to $10 billion.  Sales in the United States and Canada rose by 4%, with a 5% increase in other regions.

As a result, Deere & Co. is up in early morning action.

Over the last week, Deere & Co. has risen by 3.34%.  That goes against its trend for recent periods.  For the last quarter, Deere & Co. is down almost 10%. For 2013, Deere & Co. is down 1.72% as the Dow Jones Industrial Average (NYSE: DE) and Standard & Poor’s 500 Index (NYSE: SPY) have soared to record levels.

Deere’s entire sector is down due to slowing economic growth in China.  The world’s largest consumer of many commodities, decreased demand from the People’s Republic has been bearish for the entire agricultural sector.  The chart below for the exchange traded fund for the agriculture sector. PowerShares DB Agriculture Fund (NYSE: DBA) shows the impact:

As detailed in other articles on this site, Deere & Co. is a stock to consider as a long term buy.  It is very attractive for growth, value, and income investors. Historically, it is selling at a discount to its sales.  With a dividend yield of 2.43%, investors are paid to wait for its valuations to be restored.

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