The stock of Deere & Co. (DE) is down 5% after the maker of farm equipment and lawnmowers lowered its guidance for the remainder of this year.
Deere managed to beat Wall Street forecasts with its latest financial report.
The company reported earnings per share (EPS) of $8.53 U.S. compared to analyst estimates of $7.86 U.S.
Deere’s revenue in what was its fiscal second quarter came in at $13.60 billion U.S., topping Wall Street expectations for $13.20 billion U.S. of sales.
While the latest results were strong, Deere’s stock is dropping due to lowered guidance provided by the Moline, Illinois-based company.
Deere dropped its full-year guidance for net income to $7 billion U.S. from a previous range of $7.5 billion U.S. to $7.75 billion U.S.
Management at the company said they are struggling with falling agricultural prices.
Corn prices have declined 22% over the last 12 months, while soybean prices have decreased 13%.
Lower crop prices mean less revenue for farmers and less money for machinery purchases such as tractors and hay balers.
Before today (May 16), the stock of Deere had risen 14% over the past 12 months to trade at $414.02 U.S. per share.
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