While Deere & Co. topped expectations in its third-quarter earnings report on Thursday, weaker earnings forecast for the full-year amid growing pressure from tariffs sent the company’s stock plummeting by more than 7%.
The company’s full-year net income outlook is now $4.75 to $5.25 billion, down from a high of up to $5.50 billion in its prior forecast. Deere’s CEO told analysts that tariff costs hit $200 million in the third quarter, and are expected to be $600 million for the year, up $100 million from its prior estimate.
For the quarter ended July 27, the company reported net earnings or $1.29 billion, down from $1.73 billion a year ago. But the earnings per share of $4.75 was up from the average Wall Street estimate of $4.58.
Tariffs aren’t the only pressure on the company. Sales in production and precision ag for the third-quarter were down 16%, to $4.27 billion, the Wall Street Journal noted, due to lower sales volumes and prices. The company is dealing with an oversupply of ag equipment and weak crop prices, and that outlook wasn’t helped by Tuesday’s bearish USDA report.
