Shares of Deere & Co. DE, +0.79% sank 4% toward a 5-month low in premarket trade Friday, after the agriculture, construction and turf care equipment maker reported fiscal second-quarter earnings that missed expectations and provided a downbeat outlook. Net income for the quarter to April 29 fell to $1.13 billion, or $3.52 a share, from $1.21 billion, or $3.67 a share, in the year-ago period. The FactSet consensus for net EPS was $3.60. Total revenue grew 5.8% to $11.34 billion, just shy of the FactSet consensus of $11.36 billion. Agriculture and turf revenue rose 3% to $7.28 billion, compared with the FactSet consensus of $7.32 billion; construction and forestry revenue rose 11% to $2.99 billion, topping expectations of $2.97 billion; financial services revenue increased 11% to $886 million, beating the FactSet consensus of $852 million. For fiscal 2019, Deere expects sales to increase 5%, while the FactSet consensus of $35.69 billion implies 7% growth. “Ongoing concerns about export-market access, near-term demand for commodities such as soybeans, and a delayed planting season in much of North America are causing farmers to become much more cautious about making major purchases,” said Chief Executive Samuel Allen. The stock has lost 2.1% year to date through Thursday, while the Dow Jones Industrial Average DJIA, +0.84% has gained 11%.
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