Deere flattened downbeat earnings estimates for its April fiscal second-quarter early Thursday, but its full-year outlook underwhelmed. Deere stock edged higher in volatile early trade, near a buy point.
In an earnings statement, Deere CEO John May noted "near-term market challenges," though economic and tariff uncertainty has come down after putting international business at risk for U.S. customers. Sales have fallen for seven straight quarters and earnings for six quarters, but analysts have been expecting both to turn up later this year.
Deere holds its earnings call at 10 a.m. ET, when management will elaborate on the outlook.
Earnings Top Forecasts
Results: The Molina, Ill., company posted Q2 earnings per share of $6.64, down 22% from a year ago, but $1 ahead of estimates. Revenue fell 16% to $12.76 billion, but topped forecasts by close to $2 billion.
Outlook: Despite massively beating forecasts for Q2, Deere lowered the midpoint of its full-year outlook. The ag machinery giant now sees net income of $4.75 billion to $5.5 billion, lowering the range from $5 billion to $5.5 billion. The midpoint is still above the $5 billion consensus forecast before the Q2 report.
Deere Stock Rises In Premarket Action
Deere stock climbed 1.2% to 503.50 in premarket action. Deere closed is slightly below a 515.05 buy point from a 12-week consolidation.
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