Deere stock drops after profit miss and trimmed net income outlook, while revenue rises well above forecasts

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Shares of Deere & Co. DE, +0.45% dropped 6.8% in premarket trading Friday, after the agriculture, construction and turf care equipment maker reported fiscal third-quarter profit that missed expectations, amid higher costs and production inefficiencies, but revenue that was well above forecasts. Net income for the quarter to July 31 rose to $1.88 billion, or $6.16 a share, from $1.67 billion, or $5.32 a share, in the year-ago period. The FactSet consensus was for earnings per share of $6.65. Revenue grew 22.3% to $14.10 billion, above the FactSet consensus of $12.93 billion. Among Deere’s business segments, Production & Precision Agriculture sales jumped 43.4% to $6.10 billion, above the FactSet consensus of $5.79 billion; Small Agriculture & Turf sales rose 15.5% to $3.64 billion to beat expectations of $3.58 billion; and Construction & Forestry sales increased 8.4% to $3.27 billion, missing expectations of $3.42 billion. For fiscal 2022, the company cut its net income guidance range to $7.0 billion to $7.2 billion from $7.0 billion to $7.4 billion, and its industry growth outlook for U.S. agriculture and turf to up ~15% from up ~20%, while maintaining its outlook for construction and forestry growth at up ~10%. The stock has gained 0.9% over the past three months through Thursday, while the S&P 500 SPX, -1.29% rallied 9.8%.

This article was originally published by Marketwatch.com. Read the original article here.

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