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Tag: Deere & Co.

  • Airbnb, Blackstone to join S&P 500, while Deere will replace Walgreens in S&P 100

    Airbnb, Blackstone to join S&P 500, while Deere will replace Walgreens in S&P 100

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    Shares of investment giant Blackstone Inc. and vacation-home rental platform Airbnb Inc. rallied after hours on Friday after both won the nod to join the S&P 500 index
    SPX
    later this month.

    The announcement, from S&P Dow Jones Indices, said that the change would take hold before the start of trading on Monday, Sept. 18. The move, among others announced Friday, will “ensure each index is more representative of its market-capitalization range,” according to a release.

    Airbnb
    ABNB,
    +0.87%
    currently has a market value of $83.98 billion, and its shares are up 64.7% so far this year. Blackstone
    BX,
    -1.77%    ,
    currently worth $129.29 billion, has seen its stock rise 43.6% year-to-date.

    Shares of Airbnb and Blackstone were up 5.7% and 4.8%, respectively, after hours on Friday.

    Blackstone and Airbnb will replace Lincoln National Corp.
    LNC,
    +2.14%
    and Newell Brands Inc.
    NWL,
    +1.23%
    in the index, S&P Dow Jones Indices said on Friday. In the process, Lincoln and Newell will join the S&P SmallCap 600.

    Blackstone in July said it had reached $1 trillion in assets under management, aided by a growth trajectory that it said had outpaced its private equity rivals.

    “We’ve established an unparalleled global platform of leading business lines, offering over 70 distinct investment strategies,” Chief Executive Stephen Schwarzman told analysts. “We believe our clients view us as the gold standard in alternative asset management.”

    Meanwhile, Airbnb last month said that travelers were seeking longer stays and bigger properties in pricier areas, as the rebound in travel endures despite a tidal wave of inflation last year. The company’s second-quarter results and third-quarter sales forecast topped Wall Street’s estimates.

    Meanwhile, S&P 500 member Deere & Co.
    DE,
    +1.94%
    will replace Walgreens Boots Alliance Inc.
    WBA,
    -7.43%
    in the S&P 100, S&P Dow Jones Indices said on Friday. That change also takes hold on Sept. 18. S&P Dow Jones Indices said Walgreens “is no longer representative of the megacap market space” but will stay in the S&P 500.

    Shares of Deere fell 0.2% after hours. Walgreens stock was up 0.4%.

    Don’t miss: Walgreens CEO Roz Brewer steps down with stock at decade-and-a-half low

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  • Deere’s stock powers up after big profit and sales beats, raised full-year outlook

    Deere’s stock powers up after big profit and sales beats, raised full-year outlook

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    Shares of Deere & Co. powered higher Friday after the maker of agricultural, construction and forestry equipment reported fiscal second-quarter results that beat expectations by wide margins and raised its net income outlook, citing “healthy demand” for farm and construction equipment.

    Net income for the quarter to April 30 rose to $2.86 billion, or $9.65 a share, from $2.10 billion, or $6.81 a share, in the same period a year ago. That was well above the FactSet consensus for earnings per share of $8.58.

    Sales grew 30% to $17.39 billion, to beat the FactSet consensus of $14.89 billion, as production and precision agriculture sales jumped 53%, small agriculture and turf sales increased 16% and construction and forestry sales rose 23%.

    The stock
    DE,
    -1.88%
    rallied 3.9% in premarket trading, enough to make it the S&P 500 index’s
    SPX,
    -0.14%
    biggest gainer ahead of the open.

    Among Deere’s business segments:

    • Production & Precision Agriculture sales jumped 52.9% to $7.82 billion, above the FactSet consensus of $7.29 billion. Operating profit more than doubled, rising 105.3% to $2.17 billion, as operating margin improved by 7.0 percentage points to 27.7%.

    • Small Agriculture & Turf sales increased 16.1% to $4.15 billion to beat expectations of $3.74 billion. Operating profit rose 63.3% to $849 million, as operating margin improved 5.9 percentage points to 20.5%.

    • Construction & Forestry sales grew 22.9% to $4.11 billion, topping expectations of $3.88 billion. Operating profit edged up 2.9% while operating margin contracted by 3.9 percentage points to 20.4%.

    “As shown by the company’s outstanding second-quarter results, Deere continues to benefit from favorable market conditions and an improving operating environment,” said Chief Executive Officer John May.

    The company raised its full-year guidance range for net income to $9.25 billion to $9.50 billion from $8.75 billion to $9.25 billion.

    For its business segments, the company affirmed its fiscal 2023 sales growth outlook for Production & Precision Agriculture of up about 20%, lifted its outlook for Small Agriculture & Turf to up about 5% from flat to up 5% and revised higher its guidance for Construction & Forestry to up about 15% from up 10% to 15%.

    The stock has dropped 13.6% year to date through Thursday, while the Industrial Select Sector SPDR exchange-traded fund
    XLI,
    -0.24%
    has tacked on 1.8% and the S&P 500 has gained 9.3%.

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