Deere & Co Stock In Focus After Significant Decline In Earnings And Downbeat Guidance: Retail’s Disappointed

Agriculture equipment maker Deere & Co (DE) shares were in focus on Thursday morning after the company’s fourth-quarter-earnings came in higher than estimates but its full-year 2025 guidance fell short of Wall Street expectations.  

Worldwide net sales and revenues decreased 28% to $11.143 billion compared to an estimate of $9.27 billion.

Earnings per share came in at $4.55 versus an analyst estimate of $3.87. Net income fell 47% year-over-year (YoY) to $1.245 billion.

Segment-wise, production and precision agriculture sales decreased 38% YoY to $4.31 billion for the quarter due to lower shipment volumes.

Small agriculture and turf sales fell 25% YoY due to lower shipment volumes, partially offset by price realization.

At the same time, construction and forestry sales decreased 29% due to lower shipment volumes.

The firm expects fiscal 2025 net income to be in a range of $5.0 billion to $5.5 billion.

CEO John May said amid significant market challenges this year, the company proactively adjusted its business operations to better align with the current environment.

"Together with the structural improvements made over the past several years, these adjustments enable us to serve our customers more effectively and achieve strong results across the business cycle.”

Following the announcement, retail sentiment on Stocktwits dipped into the ‘bearish’ territory (39/100) from ‘neutral’ a day ago. The move was accompanied by ‘extremely high’ message volume.

Deere & Co’s Sentiment Meter and Message Volume as of 7:30 a.m. ET on Nov. 21, 2024 | Source: Stocktwits

Shares of Deere & Co were trading nearly 1% higher in Friday’s pre-market session. The stock has gained over 1% on a year-to-date-basis.