Deere & Company (NYSE:DE), doing business as John Deere, has delivered fourth-quarter results that beat expectations but guided investors for lower full-year 2024 earnings, sending its shares lower in Wednesday premarket trading.
The manufacturer of farm equipment and other heavy machinery reported a 1% decline in worldwide net sales and revenue to $15.4 billion for the three months ended October 29, 2023.
Net income jumped 11% to $8.26 per share, surpassing the $7.47 expected by Wall Street analysts.
"Deere's fourth-quarter and full-year results can be attributed to the successful execution of our Smart Industrial Operating Model and the value that customers recognize in our industry-leading products and solutions," chairman and CEO said John May commented in a statement.
The company has guided investors to expect 2024 net income of between $7.75 billion and $8.25 billion as volumes return to mid‑cycle levels, below the $9.33 billion expected by analysts, according to LSEG data.
"While our end markets will fluctuate, we remain focused on disciplined execution and strategically investing in solutions that drive customer value," May said.
"As evidenced by our guidance for 2024, we are demonstrating higher levels of through-cycle structural profitability while making our company more resilient and better equipped for the future.”
The company’s shares fell 6.9% to $354.99 ahead of the opening bell.
Contact the author at stephen.gunnion@proactiveinvestors.com