Deere (NYSE:DE) Jumps on 35 Percent Increase in Equipment Sales

Deere & Company (NYSE:DE) easily beat Street estimates in its latest quarter, as equipment sales soared 35 percent.

Earnings crushed earnings estimates, generating $1.20 a share, while analysts on average were looking for 99 cents a share.

Samuel R. Allen, chairman and chief executive officer, said, "John Deere's first-quarter results reflect improving demand for our innovative lines of equipment coupled with the skillful execution of our business plans. Our actions are helping attract customers through advanced new products and technologies. Sales of large farm machinery, particularly in the United States and Canada, are continuing to make a major impact, while construction equipment shipments are experiencing some degree of recovery"

Strong food prices last year helped farmers generate more earnings as well, providing them with the capital and will to increase acquisitions of machinery.

Net equipment sales increased to $5.5 billion, up from $4.2 billion in sales last year in the same quarter. That was below the $5.67 billion in sales the Street expected, although still a 35 percent gain.

Guidance for full year profits was boosted from $2.1 billion to $2.5 billion.

Deere was trading at $95.59, gaining $1.97, or 2.10 percent, as of 11:47 AM EST.