Deere failed to meet expected revenue targets on Wall Street as it said it was struggling to secure parts for its heavy machinery, sending its shares tumbling 14%, but Deere posted strong earnings forecasts for the full year, but comments about stopping the sale of many of its machines due to chain problems Supply covered the optimistic side of the company’s report.
Only once has the company failed to meet sales expectations in the past 10 quarters, and the agricultural equipment maker was expected to post net sales of $13.2 billion, but revenue of just $12.02 billion, as the agricultural machinery giant’s ability to deal with A storm and supply chain bottlenecks, however, revenue was about 9% lower than the average analyst estimate.
This indicates the increasing severity of the raw materials shortage crisis coupled with inflationary pressures, which pushed the company’s shares to end trading down 14% at $311.84 per share. Read more [Deere Aises Expectations Despite Inflation Pressure].
Deer net income was $2.09 billion, or $6.81 per share, during the quarter ended May 1, just above expectations of $6.71 per share. Its growth has been plagued by supply problems.
Increased expenses have slashed farmers’ profits, but net income remains relatively high, which is a point of optimism for equipment sales, as tractor buying sentiment and farm sales remain positive, and Deere executives believe the old mechanisms will prompt farmers to renew their fleet of machinery.