Deere: consensus beaten, but forecasts disappoint

(CercleFinance.com) - US farming equipment manufacturer Deere & Company has reported better-than-expected quarterly earnings on Wednesday, although its profit forecasts for the new financial year disappointed the market.


The Moline, Illinois-based group posted net income of $2.4bn for Q4 ended 29 October, compared with $2.2bn for the same period last year.

EPS came to $8.26, compared with $7.44 a year earlier and the consensus of $6.85.

Net sales fell by 1% to $15.4bn.

For FY 2023/2024, which began in November, Deere says it expects sales volumes to return to "mid-cycle" levels, which should result in a decline in net income.

It now forecasts net income, group share of between $7.75bn and $8.25bn, compared with $10.2bn for the fiscal year just ended.

Following this disappointing outlook, the company's shares were down over 5% in pre-market trading.


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