Deere & Co (DE)'s stock plummeted in pre-market trading as the farm equipment company reported lower-than-expected third-quarter earnings and lowered its full-year profit prediction due to ongoing supply chain issues.
Deere said earnings for the three months ended on August 1, the group's fiscal second quarter, increased by 17.3% compared to the same time last year, but well short of the Street consensus estimate of $6.69 per share. Global sales, Deere said, increased by 22% to $14.1 billion, firmly topping analysts' estimates of a $12.8 billion tally.
Deer forecasted net income between $7 billion and $7.2 billion at the end of the 2022 fiscal year, compared to $7 billion and $7.4 billion earlier.
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"We anticipate favorable conditions to last till 2023 based on the robust response we have experienced to early-order programs," said CEO John May. "We are working closely with our factories and suppliers to meet higher customer demand next year."
"We are confident that Deere's innovative industrial strategy and leap ambitions will continue to bring new value to customers thanks to their advanced technologies and solutions."
Deere shares were marked 6.5 percent lower in pre-market trading immediately following the earnings release, indicating an opening bell price of $344.00 each.