Shares of Deere & Co. DE, -0.89% rose 2.4% in premarket trading Friday, after the construction, agriculture and turf care equipment maker reported fiscal second-quarter profit and revenue that rose well above expectations, while warning that supply-chain pressures will increase through the rest of the year. Net income for the quarter ended May 2 nearly tripled, to $1.79 billion from $666 million, while earnings per share rose to $5.68 from $2.11. The FactSet EPS consensus was $4.51. Revenue grew 30% to $12.06 billion, beating the FactSet consensus of $10.57 billion, with equipment operations sales rising 34% to $11.00 billion. Cost of sales rose 26.0%, with gross profit as a percentage of sales increasing to 34.3% from 32.0%. “While the company is clearly performing at a high level, Deere expects to see increased supply-chain pressures through the balance of the year,” said Chief Executive John May. “We are working closely with key suppliers to secure the parts and components that our customers need to deliver essential food production and infrastructure.” The stock has rallied 32.0% year to date through Thursday, while the S&P 500 SPX, +1.06% has gained 10.7%.
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