Key Takeaways
- Deere reported third-quarter earnings Thursday that fell year-over-year, but still managed to beat analyst estimates.
- CEO John May said the company faced “challenging conditions” and “significant headwinds” in the agriculture and construction industries.
- Deere said it expects sales to come in 10% to 25% lower for the full fiscal year.
Deere & Company (DE) reported third-quarter earnings that beat expectations, despite a year-over-year decline as the company faced “significant headwinds” in the agriculture and construction industries.
The maker of farm equipment, lawn mowers, and other vehicles reported third-quarter revenue fell 17% year-over-year to $13.15 billion, though analysts had anticipated a bigger drop. Net income fell over 40% compared to the same time last year to $1.73 billion, but still managed to beat estimates compiled by Visible Alpha.
Sales Decline Across Categories Amid ‘Challenging Conditions’
“John Deere’s third-quarter results showcase our disciplined execution in the face of challenging conditions in the global agricultural and construction sectors,” Deere CEO John C. May said. “Despite facing significant headwinds, our teams have demonstrated resiliency in adapting to market fluctuations, allowing us to remain focused on advancing our strategy and consistently providing exceptional value to our customers.”
Sales fell across all three of Deere’s main categories in construction and agriculture, but higher prices on its agriculture vehicles offset some of the sales losses.
Across its categories, Deere projects sales to come in 10% to 25% lower for the full fiscal year, while price realization will be up to 2% higher than last year.
Deere shares were up 1.3% to $356 in pre-market trading Thursday following the release.