Deere Net Sales Drop by 25% for Fourth Quarter

The Illinois-based company said sales next year are likely to drop 7%, signaling a prolonged slump for the sector hurt by weakening demand and lower grain prices that are pinning down farmers’ profits. Analysts were expecting earnings of $0.75 per share on revenue of $6.12 billion. After $1.53 actual earnings per share reported by Deere & Company for the previous quarter, Wall Street now forecasts -51.63% negative EPS growth. The company has beaten analysts’ estimates for earnings in each of the past five quarters, and this most recent beat of 5.9% is identical to that in the third quarter of 2014. For the next year, analysts forecast that the company will report earnings of $4.35 per share, with EPS estimates ranging from $3.50 to $5.50.

Deere & Company (DE) saw its price target lowered to $70 from $73 by UBS, while the firm retained its sell rating on the stock. Citigroup Inc. reduced their target price on Deere & Company from $100.00 to $90.00 in a report on Friday. Finally, BMO Capital Markets decreased their price objective on shares of Deere & Company from $80.00 to $77.00 and set a “market perform” rating for the company in a report on Monday, August 24th.

Separately, TheStreet Ratings team rates DEERE & CO as a Hold with a ratings score of C+. The stock has an average rating of “Hold” and a consensus price target of $81.18. Shares, down 14% this year through Tuesday’s close, rose 6% in premarket trading. It has 11.45 P/E ratio. Revenue was reported as $25.78 billion. The Company’s agriculture and turf segment primarily makes and distributes a full line of agriculture and turf equipment and related service parts.

Deere & Company (NYSE:DE), together with its auxiliaries, manufactures and distributes agriculture and turf, and construction and forestry equipment worldwide. In addition, the financial services segment provides wholesale financing to dealers of the foregoing equipment, finances retail revolving charge accounts and operating loans and offers crop risk mitigation products and extended equipment warranties.