That old cliche about making money by selling the picks and the pans in a gold rush applies once again.
Deere, the farm equipment maker, just killed it on earnings.
EPS of $1.20 was well ahead of $.99 estimates.
Net sales of $6.1 billion was ahead of the estimates of $5.7 billion.
And the outlook is pretty pretty as well. Q2 earnings growth is expected at 20-25% compared to previous estimate of 15%.
Says CEO Samuel Allen: ” 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, Allen noted. “Our record first-quarter performance is especially gratifying in light of market conditions that remain below normal levels in certain key sectors.”