Deere & Co. (DE), the company behind John Deere tractors and lawn mowers, has reported better-than-expected financial results for what was its fiscal first-quarter.
Deere reported earnings per share (EPS) of $6.23 U.S. and revenue of $10.40 billion U.S. Wall Street was looking for earnings of $5.26 U.S. and sales of $10.30 billion U.S.
However, despite the solid earnings beat, Deere & Co. issued weak forward guidance, causing the company’s stock to fall 4% in premarket trading.
Deere said that it expects to report net income of $7.60 billion U.S. for all of this year, below previous forecasts of $8 billion U.S.
Deere said it anticipate EPS of $21 U.S. this year, while Wall Street was looking for $23 U.S.
In its earnings release, the company said that the agricultural cycle is turning lower with corn prices down 37% over the last 12 months. That has farmers spending less on Deere equipment, which is hurting sales.
Prior to today (Feb. 15), the stock of Deere & Co. had declined 6% and was trading at $384.78 U.S. per share.
