Deere stock jumps after profit and sales rise above expectations, even as supply-chain pressures continue

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Shares of Deere & Co. DE,
+0.03%
Premarket trading jumped 2.4% on Wednesday, with the agricultural and construction equipment company reporting fiscal fourth-quarter profit and sales that rose above expectations, as strong demand for agricultural and construction equipment helped offset the cost of sales growth. , which has been outpaced by sales growth across the supply-chain. challenges. Net income rose to $1.28 billion, or $4.12 per share, from $757 million, or $2.39 per share, in the year-ago period. FactSet’s agreed-upon earnings per share was $3.87. Sales increased 16.4% to $11.33 billion, while cost of sales increased 20.7% to $7.81 billion, reducing gross margin from 33.5% to 31.1%. “Looking forward, we expect agricultural and construction equipment demand to continue to benefit from positive fundamentals, including favorable crop prices, economic growth and increased investment in infrastructure,” said Chief Executive John May. “At the same time, we anticipate that supply-chain pressures will continue to pose challenges across our industries. We are working closely with our suppliers to address these issues and ensure that our customers meet the necessary requirements.” To deliver food and infrastructure more profitably and sustainably.” The stock has slipped 5.1% over the past three months since Tuesday, while the S&P 500 SPX,
+0.17%
increased by 4.6%.

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