Deere & Company (NYSE:DE, ETR:DCO) stock was up 1.2% premarket after the tractor maker reported better quarterly earnings but delivered guidance that was not as much as had been forecast, due to ongoing investment in the business.
The Illinois-based group posted results showing net income of $1.245 billion for its fiscal fourth quarter, down 47% from a year earlier.
This amounted to earnings per share of $4.55, whereas Wall Street analysts had been predicting EPS of $3.87.
This was as revenues decreased 28% to $11.1 billion, well above forecast sales of $9.2 billion per FactSet.
Looking ahead, Deere gave guidance for net income in between $5 billion and $5.5 billion, which was all below the Street's $5.8 billion average forecast.
"Amid significant market challenges this year, we proactively adjusted our business operations to better align with the current environment," said chairman and CEO John May.
He said the group was "committed to making meaningful investments in our future" as it navigates ongoing headwinds.