Deere's Earnings Beat Not Enough To Boost Stock

Shares of Deere & Company DE fell more than 4.5 percent Friday morning after the company reported its fiscal third-quarter results.

Deere earned $1.97 per share on revenue of $7.81 billion, while analysts were expecting the company to earn $1.95 per share on revenue of $6.92 billion. Net income for the quarter rose from $488.8 million in the same quarter a year ago to $641.8 million as net sales rose 17 percent in the quarter and by 6 percent for the nine months compared with the same periods a year ago.

Equipment net sales in the U.S. and Canada rose 11 percent, while sales outside of the North American region rose 25 percent.

Deere's equipment operations reported its operating profit rose from $625 million a year ago to $795 million, mostly due to improvements in shipment volumes and price realization and partially offset by increased production and selling costs.

Net income for the equipment operations also improved from $353 million a year ago to $506 million, as did net income for the financial services segment which improved from $125.9 million a year ago to $131.2 million.

Looking forward to the fourth quarter, Deere expects its equipment sales to rise by around 24 percent in the quarter and 10 percent for the full fiscal year. The company also guided its net sales and revenue to rise 11 percent for the full year to around $2.075 billion.

"Deere's ability to deliver consistently strong financial results is proof of our success building a more durable business model," said Samuel R. Allen, chairman and chief executive officer. "We are continuing to find ways to make our operations more efficient and profitable while providing even more value to our global customers. As a result, we're confident Deere is well-positioned to continue its strong performance and to fully capitalize on the world's increasing need for advanced machinery and services in the future."