Deere & Company (NYSE: DE) reported better-than-expected sales for the second quarter of 2019 but missed earnings estimates and lowered full-year guidance, causing the stock to fall over 4% in premarket hours on Friday.
The company reported worldwide net sales and revenue of $11.3 billion, up 6% compared to the prior year. Net sales rose 5% to $10.3 billion, surpassing the consensus estimate of $10.1 billion.

On a GAAP basis, net income fell to $1.13 billion, or $3.52 per share, from $1.20 billion, or $3.67 per share, last year. Adjusted EPS rose 12% to $3.52 but fell short of the forecasts of $3.61.
Net sales for the equipment operations increased 5% year-over-year to $10.2 billion. Deere recorded sales increases in the Agriculture & Turf and Construction & Forestry segments of 3% and 11%, respectively, helped by higher shipment volumes and price realization. Financial Services revenue grew 11% to $886 million.
The company’s financial services subsidiary John Deere Capital Corporation recorded a 14% growth in revenue to $703 million.
The company lowered its guidance for fiscal-year 2019 due to uncertainty in agricultural markets. Net sales and revenue are now forecasted to increase 5% versus the prior target of 7%. Net income attributable to Deere & Company is expected to be around $3.3 billion versus the previous guidance of $3.6 billion. Company equipment sales are expected to increase by about 5% for the year.
Industry sales of agricultural equipment in the US and Canada are forecast to be flat to up 5% for the full year of 2019, while industry sales in the EU28 member nations are forecast to be about flat. Industry sales of turf and utility equipment in the US and Canada are expected to be flat to up 5% for 2019. In forestry, global industry sales are expected to be flat to up 5% mainly due to improved demand in EU28 countries and Russia.
Get access to timely and accurate verbatim transcripts that are published within hours of the event.
Most Popular
Earnings Preview: FedEx looks set to report mixed results for Q4 2025
FedEx Corp. (NYSE: FDX) is preparing to report fourth-quarter earnings on Tuesday, June 24, at 4:00 pm ET. Recently, the management lowered its full-year earnings and revenue guidance for the
How Ulta Beauty’s (ULTA) new strategy is fueling growth
Shares of Ulta Beauty, Inc. (NASDAQ: ULTA) were up over 1% on Monday. The stock has gained 31% over the past three months. The beauty retailer started fiscal year 2025
Earnings Preview: What to look for when Kroger (KR) reports Q1 2025 results
The Kroger Co. (NYSE: KR) is expected to report its first-quarter financial results next week. Customer engagement remained stable last year, driven by high-quality products and tailored promotional offers. Recently,