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Key Takeaways
- Agricultural and construction equipment maker Deere exceeded profit and sales forecasts for its first quarter of fiscal 2024, though its revenue fell 8% from a year earlier.
- The company lowered its full-year guidance in anticipation of customers holding off on replenishing their fleets.
- Shares dropped over 5% in intraday trading Thursday following the release.
Deere & Co. (DE) shares fell over 5% in intraday trading Thursday after the agricultural and construction equipment manufacturer lowered its full-year guidance as farmers pull back on purchases.
The maker of tractors and excavators now anticipates fiscal 2024 net income of $7.50 billion to $7.75 billion. That forecast was down from its previous estimate of $7.75 billion to $8.25 billion. Chief Executive Officer (CEO) John May said that the company expects “fleet replenishment to moderate as agricultural fundamentals normalize from record levels in 2022 and 2023.”
In the fiscal first quarter of 2024 ended Jan. 28, the company posted a profit of $6.23 per share, with revenue down 8% from a year earlier to $10.49 billion. Both exceeded forecasts.
Sales at its biggest unit, Production & Precision Agriculture, declined 7% to $4.85 billion on lower shipment volumes. Small Agriculture & Turf division sales tumbled 19% to $2.43 billion, as it also faced a drop in volumes. Sales of $3.21 billion at its Construction & Forestry division were roughly flat from the year before.
Deere shares were down 5.5% at $363.64 per share as of about 3:45 p.m. ET Thursday. They’ve lost more than 11% of their value over the past year.
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