Deere & Company (NYSE:DE) reported higher than expected profits for its second fiscal quarter according to the Chicago Tribune. Profits jumped 3 percent during the quarter, although the company warned that the rest of the year’s sales will be affected by financial pressures around the world and also the cool, wet weather in North America. As a result, shares of Deere & Company (NYSE:DE) dropped before opening bell and continued falling, as much as 4 percent, in Wednesday morning trading.
The company’s most recently completed quarter ended April 30, and its report showed net income of $1.08 billion or $2.76 per share. That’s compared to $1.06 billion or $2.61 per share in the same quarter a year ago. Revenue jumped 9 percent to $10.9 billion. Analysts were predicting that Deere & Company (NYSE:DE) would report earnings per share of $2.72 on $9.94 billion in revenue.
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In a statement, the company’s chairman and CEO Samuel R. Allen said, “Deere’s results are a reflection of positive conditions in the global farm economy, which continues to show impressive strength.”
Income And Sales Guidance For Deere
The company said again that it believes net income for the full year will be $3.3 billion, although it reduced its sales guidance for the full year. The equipment manufacturer said it now looks for a 5 percent increase in sales of its farming equipment rather than the 6 percent it had predicted in the past. During the current quarter, Deere is expecting to see sales of equipment rise by 3 percent.
Analysts said investors likely weren’t surprised that Deere & Company (NYSE:DE) beat expectations, so when it lowered guidance for the year, that reflected more negatively on the stock than the profit beat did.