The farm-equipment maker Deere slumps after missing on earnings and signaling slower sales growth amid the trade war with China (DE)
- The farm-equipment maker Deere missed on both the top and bottom lines.
- The company also guided slower sales growth in the wake of ongoing trade tensions between the US and China.
- Shares tanked by as much as 4% early Wednesday.
- Watch Deere trade live here.
The farm-equipment maker Deere plunged as much as 4% before Wednesday’s opening bell after it reported weaker-than-expected earnings and signaled slower sales growth in the wake of ongoing trade tensions between the US and China.
Deere said it expected sales of agricultural equipment in the US and Canada, where it earns a significant portion of revenues, to be flat to up 5% next year.
Here are the other key numbers compared to Wall Street’s estimates, according to Bloomberg data.
- Q4 earnings per share: $2.42, up 54% year-over-year ($2.37 expected)
- 2018 earnings per share: $7.24, up 8% YoY ($7.72 expected)
- Q4 revenue: $8.34 billion, up 18% YoY ($8.64 billion expected)
- 2018 revenue: $33.35 billion, up 29% YoY ($33.64 billion expected)
- 2019 revenue guidance: up 7% YoY
- 2019 earnings guidance: up 53% YoY
“In our view, the company remains well-positioned to capitalize on growth in the world’s agricultural and construction equipment markets,” said CEO Samuel R. Allen in the press release.
“The replacement cycle for farm machinery is very much alive, despite tensions over global trade and other geopolitical issues. In addition, we are experiencing a strong response to the advanced features and technology found in our new products, which are helping attract customers throughout the world. Based on these factors, we remain confident in the company’s present direction and believe Deere is poised to deliver improved operating performance and significant value to its customers and investors in the future.”
Deere was down 14.6% this year through Tuesday.
Read the full article from it’s original source: http://uk.businessinsider.com/deere-stock-price-q4-earnings-miss-amid-trade-war-2018-11