Deere & Co. raised the lower end of its annual profit outlook as a stabilizing agriculture sector points to a more pronounced rebound next year for farm machinery.

The company now expects full-year earnings per share of $2.90 to $3.10, up from its previous forecast of $2.75 to $3.10.

Analysts had anticipated EPS of around $2.90, making the updated guidance a modest beat on the low end. The move reflects improving demand for agricultural equipment as farmer confidence rebounds.

Deere's construction and forestry segment also showed signs of stabilization, though the company cautioned that macroeconomic uncertainties could impact future performance. Shares of Deere rose modestly in early trading following the announcement.

The company plans to provide further updates during its upcoming earnings call scheduled for next month.