Deere Plunges 5% on Disappointing Profit Guidance

Deere & Company's (NYSE:DE) shares experienced a 5% decline intra-day today following the announcement of less-than-expected profit estimates for 2024.

Deere & Company adjusted its forecast for net income for the fiscal year 2024, estimating it to be between $7.75 billion and $8.25 billion. This projection falls short of the $9.32 billion anticipated by Wall Street analysts.

The company saw significant growth in its construction and forestry equipment sector, with net sales reaching $3.74 billion in the third quarter, marking an 11% increase from the same period the previous year. This rise was partially due to increased prices, although higher input costs somewhat counterbalanced it.

Deere & Company reported a 1% decrease in global net sales and revenues, totaling $15.4 billion, for the quarter ending October 29. In contrast, the net income rose by 5.5% compared to the same period last year, reaching $2.37 billion.