Deere: consensus beaten, but forecasts disappoint

(CercleFinance.com) - American farm equipment manufacturer Deere & Company reported better-than-expected quarterly earnings on Wednesday, but its profit forecast for the new financial year disappointed the market.


The Moline, Illinois-based group posted net income of $2.4 billion for its fourth fiscal quarter, ended October 29, compared with $2.2 billion for the same period last year.

On a per-share basis, net income was $8.26, compared with $7.44 a year earlier and a consensus $6.85.

Net sales declined by 1% to $15.4 billion.

For its new fiscal year 2023/2024, which began in November, Deere anticipates a return of sales volumes to "mid-cycle" levels, which should translate into a decline in net income.

Its forecast for net income, group share, is therefore between 7.75 and 8.25 billion dollars, compared with 10.2 billion for the fiscal year just ended.

Following these details, which were deemed disappointing, its shares lost more than 5% in pre-market trading.

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