Why Deere & Co. Shares Traded Down Today

Core Viewpoint - Deere & Co. reported disappointing earnings and provided a subdued forecast, leading to a decline in its stock price [1][2] Financial Performance - In the fiscal first quarter ending January 26, Deere earned $3.19 per share on revenue of$8.51 billion, missing earnings estimates by $0.06 but exceeding revenue expectations by$620 million [2] - Revenue decreased by 30% year over year, indicating weak demand among farmers [2] Market Conditions - The agricultural equipment industry is cyclical, and Deere's performance is affected by fluctuating crop prices and uncertain global demand [2][4] - CEO John C. May emphasized the company's focus on optimizing inventory levels amid challenging market conditions [3] Future Outlook - Management forecasts a decline in precision agriculture sales by 15% to 20% in fiscal 2025, forestry sales down by 10% to 15%, and small equipment and turf sales down by 10% [3] - The current market environment is challenging for selling heavy equipment, as farmers typically purchase when crop prices are high [4]