Deere Raises Guidance as Cashed-Up Farmers Fuel Tractor Boom
- Shares rise with new guidance well ahead of analyst estimates
- Tractor maker also beat estimates on quarterly sales, profit
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Deere & Co. raised its earnings guidance above analyst estimates as sustained high crop prices keep farmers spending, resulting in a record windfall for the top maker of agricultural machinery. Its shares rose.
A year after Russia’s invasion of Ukraine sent wheat futures to a record, Deere is betting crops will stay pricey, enabling farmers to absorb cost inflation and overhaul aging fleets. China’s reopening from the pandemic and a drought in Argentina are set to boost demand, with US farmers remaining optimistic even as income moderates from record levels.