Deere & Company (NYSE:DE, ETR:DCO) shares fell on Thursday after the farm machinery manufacturer reported significant year-over-year declines in sales and profits for the fiscal first quarter.
Revenue for the three month period ending in January was $8.5 billion, down 30% from $10.5 billion in the year-ago quarter. Analysts had expected $7.7 billion.
Earnings per share fell to $3.19 from $6.23, missing estimates of $3.26.
"Deere's performance in the first quarter highlights our continued focus on optimizing inventory levels of both new and used equipment amidst the uncertain market conditions our customers are facing," Deere CEO John May said in a statement.
For 2025, the company said it continues to expect income in the range of $5 billion to $5.5 billion.
The company anticipates continued declines in various sectors, projecting a decrease of approximately 30% in US & Canada Large Agriculture equipment sales, and about a 10% drop in Construction Equipment sales.
"The stability of our net income guidance not only reflects our resilience in a challenging market but also enables our sustained strategic investments to provide better outcomes for our customers," May added.
Shares of Deere fell 2% to about $469 late morning on Thursday.