Deer's quarterly profit

U.S. Deere Co (NYSE:DE)., the world's largest manufacturer of farm equipment, posted a 2.4-fold increase in net income in the first quarter of its fiscal year ended Jan. 31 to $1.22 billion, or $3.87 per share, up from $517 million, or $1.63 per share, in the same period a year earlier, the company said in a press release.

Analysts polled by FactSet had forecast an average of $2.16 per share.

Deere's quarterly revenue rose 19% to $9.11 billion from $7.63 billion, while the consensus forecast was for a decline to $7.21 billion.

Sales of its large farm equipment unit grew 22% to $3.07 billion and small equipment unit jumped 27% to $2.52 billion while its logging and construction equipment divisions saw a 21% increase to $2.47 billion.

Analysts polled by FactSet had expected total sales of farm equipment to be $5.13 billion and logging and construction equipment to be $2.13 billion.

The company reiterated its fiscal 2021 net income forecast to be in the range of $3.6 billion to $4 billion.

Sales of forestry and construction equipment are expected to be $10.5 billion to $11.5 billion, which is above the consensus estimate of $9.7 billion, while sales of large farm equipment are expected to be $15.5 billion to $16.5 billion and small equipment $10.5 billion to $11.5 billion compared with the $25.4 billion the analysts had estimated the company would expect this year.

Deere shares jumped 5.7% in premarket trading in New York on Friday. The company's capitalisation has risen 16.1% to $97.8bn in the past three months.