Investing.com - Deere & Company reported fiscal fourth quarter earnings that missed analysts' expectations on Wednesday and revenue that fell short of forecasts.
The firm reported earnings per share of $2.30 on revenue of $8.34 billion. Analysts polled by Investing.com forecast EPS of $2.44 on revenue of $8.61 billion.
“The company has continued to face cost pressures for raw materials such as steel, which are being addressed through pricing actions and ongoing cost management,” Samuel R. Allen, chairman and chief executive officer, explained.
Looking ahead, Allen indicated that net sales and revenues are expected to increase by about 7% for fiscal 2019 and forecast net income to be about $3.6 billion.
“The replacement cycle for farm machinery is very much alive, despite tensions over global trade and other geopolitical issues,” Allen said.
At 6:59 AM ET (11:59 GMT), Deere & Company (NYSE:DE) stock fell 2.54% to $135.00 in pre-market trade. Shares are down 11.49% so far this year, under-performing the S&P 500 which is down 1.56% year to date.
Deere&Company follows other major Capital Goods sector earnings this month
On October 24, Boeing reported third quarter EPS of $3.58 on revenue of $25.15 billion, compared to forecasts of EPS of $3.47 on revenue of $23.89 billion.
3M earnings matched analyst's expectations on October 23, with third quarter EPS of $2.58 on revenue of $8.15 billion. Investing.com analysts expected EPS of $2.58 on revenue of $8.41 billion.
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