Deere & Co (DE) shares tumbled Friday after the farm equipment maker posted weaker-than-expected third quarter earnings and trimmed its full-year profit forecast amid ongoing supply chain pressures.
Deere said earnings for the three months ending on August 1, the group's fiscal second quarter, came in at $6.16 per share, up 17.3% from the same period last year but well shy of the Street consensus forecast of $6.69 per share. Group worldwide sales, Deere said, rose 22% from last year to $14.1 billion, firmly topping analysts' forecasts of a $12.8 billion tally.
Looking into the end of the 2022 fiscal year Deer said it sees net income of between $7 billion and $7.2 billion, down from its prior forecast of $7 billion and $7.4 billion.
"Looking ahead, we believe favorable conditions will continue into 2023 based on the strong response we have experienced to early-order programs," said CEO John May. "We are working closely with our factories and suppliers to meet higher levels of customer demand next year."
"Additionally, we are confident the company's smart industrial strategy and leap ambitions will continue unlocking new value for customers through Deere's advanced technologies and solutions," he added.
Deere shares were marked 3% lower in early trading immediately following the earnings release to change hands at $357.55 each.
