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• Revenue came in at $12.02 billion compared to the estimated $13.2 billion
Shares of Deere and Co (NYSE: DE) fell nearly 14% on Friday after the agricultural equipment maker missed Wall Street’s revenue expectations for its fiscal second quarter.
The company was expected to post net sales of $13.2 billion, but revenue came in at $12.02 billion. It reported earnings per share of $6.81, as compared to the estimated EPS of $6.69 apiece.
A year earlier, Deere earned $5.68 a share from $12 billion in sales.
Net income rose to $2.098 billion for the quarter ended May, compared with net income of $1.790 billion, for the same period, a year ago.
The company has weathered the storm of supply-chain bottlenecks but the 9% drop in revenue compared to analysts’ consensus indicates that raw material shortages, compounded by inflationary pressures, have started to weigh on it.
Earnings in Deere’s lending unit are expected to decline a little in 2022 because of higher provision for credit losses and higher expenses.
Source: Deere and Co
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