Shares of Deere & Co. DE, +5.32% jumped 2.4% in premarket trading Wednesday, after the agricultural and construction equipment company reported fiscal fourth-quarter profit and sales that rose above expectations, as strong demand for farm and construction equipment helped offset cost of sales growth that outpaced sales growth amid supply-chain challenges. Net income rose to $1.28 billion, or $4.12 a share, from $757 million, or $2.39 a share, in the year-ago period. The FactSet consensus for earnings per share was $3.87. Sales grew 16.4% to $11.33 billion, while cost of sales increased 20.7% to $7.81 billion to knock gross margin down to 31.1% from 33.5%. “Looking ahead, we expect demand for farm and construction equipment to continue benefiting 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 supply-chain pressures will continue to pose challenges in our industries. We are working closely with our suppliers to address these issues and ensure that our customers can deliver essential food and infrastructure more profitably and sustainably.” The stock has slipped 5.1% over the past three months through Tuesday while the S&P 500 SPX, +0.23% has gained 4.6%.
This article was originally published by Marketwatch.com. Read the original article here.