Deere & Co (DE) Stock Soars on Raised Outlook

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Deere & Co  (NYSE: DE ) raised its guidance for its fiscal 2016 after releasing fiscal third-quarter results that beat expectations.

For its most recent period, the agricultural equipment manufacturer reported earnings of $ 1.55 per share, topping the consensus estimate of 94 cents. The figure also marked a year-over-year increase of 1.3%.

The company’s net sales for the quarter amounted to $ 6.72 billion, handily beating Wall Street’s average projection of $ 6.09 billion by $ 630 million.

Deere’s full-year earnings are now slated to come in at $ 1.35 billion per share, ahead of its previous estimate of $ 1.2 billion. Higher prices for its products helped the company exceed expectations.

The global farm and construction industry is currently weak, but Deere bucked the trend by slowing down production to avoid an oversupply of tractors and other agricultural equipment. Sales of its farm equipment fell 11% year-over-year to $ 4.7 billion.

The company issued a quarterly dividend that was paid on Monday, August 1st. Investors on record with Deere as of Thursday, June 30th netted a 60-cent dividend, marking a yield of 3.12%.

Back in late April, Warren Buffett named Deere as one of its top dividend stocks  and increased his stake on the construction equipment provider. The company was suffering from lower crop prices and diminished demand for the company’s products, which is the best time to invest on high quality dividend stocks.

DE shares popped 11.8% Friday. The stock has had its ups and downs throughout the year, but it is ultimately up 12.4% YTD.

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