Deere on Friday reported earnings for its fiscal first quarter that easily topped Wall Street’s forecasts, and revenue fell by less than analysts had expected.
The tractor maker and bellwether for agriculture said the “US farm sector shows early signs of stabilization.” Net income rose 4% even though revenue was down 6%.
But the trade truce between China and the Trump administration is good news for farmers — and Deere.
“Farmer confidence, though still subdued, has improved due in part to hopes for a relaxation of trade tensions and higher agricultural exports,” said Deere CEO John May in a statement.
The rebound in farming helped offset a slowdown in the company’s construction and forestry equipment division.