Shares of Deere & Company (NYSE:DE) tumbled in premarket trade Friday after the agricultural machinery company posted fiscal third quarter earnings that missed Wall Street estimates despite strong revenues.
The Moline, Illinois-based company posted earnings of US$2.59 per share on revenue of US$10.3bn. The consensus earnings estimate was US$2.77 per share on revenue of US$9.2bn. Revenue grew 32% on a year-over-year basis.
Deere stock fell 5.8% to US$129.48 before the opening bell.
Tariffs, higher material and transportation costs are likely to weigh on profits but management still remained pretty optimistic about the overall farming outlook.
"We continue to believe Deere is well-positioned to capitalize on growth in the world's agricultural and construction equipment markets," said Deere & Company CEO Samuel R Allen.
"Replacement demand for large agricultural equipment is driving sales even in the face of tensions over global trade and other geopolitical issues. We are heartened by our customers' enthusiastic response to the advanced features and technology found on our new products," he added.
Contact Uttara Choudhury at [email protected]