Why Deere Stock Is Caught in the Headlights Today
Agriculture equipment manufacturer Deere (NYSE: DE) reported better-than-expected quarterly results but trimmed its full-year forecast for the second time. Investors are focused on what is to come, sending Deere shares down 3% as of 11 a.m. Eastern.
Deere earned $8.53 per share in its fiscal second quarter ending April 28 on revenue of $15.24 billion, easily surpassing Wall Street's $7.86 per share on sales of $13.3 billion estimate. Revenue was down 12% year over year and net income fell by 17%, reflecting lower shipment volumes and higher production costs.
CEO John C. May called the results "noteworthy in light of continued changes across the global agricultural sector." High interest rates are pressuring farmers at a time when farm income is expected to fall due to lower commodity prices and higher production costs.
Source Fool.com
