The farm-equipment giant Deere announced better-than-expected fiscal third-quarter earnings, but the stock is lower as margins disappointed.
Before Wednesday’s opening bell, Deere (ticker: DE) said that it earned $712 million, or $1.69 a share, up from $1.44 a share, in the year-ago period, and two cents ahead of analysts’ estimates. Revenue grew to $8.37 billion, also coming in stronger than the consensus $7.5 billion. (Third quarter ended July 31.)
For the full fiscal year, ending Oct. 31, Deere upped its profit guidance by $50 million, to $2.7 billion, ahead of the $2.65 billion it forecast in May, but slightly below expectations.
Shares were recently down 1% to $74.38. Yet we think they may weaken further