Deere shares slide 1.2% after earnings miss

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  1. sniper-academy

    sniper-academy Administrator Staff Member

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    Deere & Co. shares slid 1.2% in premarket trade Friday, after the company missed estimates for its second fiscal quarter to April 29. The maker of agricultural and construction equipment said it had net income of $1.208 billion, or $3.67 a share, in the quarter, up from $808.5 million, or $2.50 a share, in the year-earlier period. Adjusted per-share earnings came to $3.14, below the FactSet consensus of $3.30. Sales of equipment rose to $9.747 billion from $7.260 billion, also below the FactSet consensus of $9.822 billion. "During the quarter, Deere made significant progress working with its suppliers to ramp up production and ensure that products reach customers in a timely manner," Chief Executive Samuel Allen said in a statement. "At the same time, we are experiencing higher raw-material and freight costs, which are being addressed through a continued focus on structural cost reduction and future pricing actions." The company is expecting sales of equipment to rise about 30% in fiscal 2018, and to rise about 35% in the third quarter. Net income is expected to be about $2.3 billion, including $803 million in provisional income tax expense associated with the tax revamp. Shares have gained 30% in the last 12 months, while the S&P 500 has gained 15%.

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