Deere & Co. missed earnings expectations amidst rising costs, notwithstanding strong revenue growth. It also lowered its full-year profit outlook.
The agricultural equipment maker’s sales of $13.0 billion for the quarter ended July 31 beat analysts’ expectations of $12.78 billion.
However, earnings came in at $6.16 per share, below analysts’ estimates of $6.69 per share (based on Refinitiv IBES data).
The earnings miss could be to some extent attributed to total costs and expenses surging +24.4% year over year.
Deere indicated that it expedited shipping to get tractors and combines on dealer showroom floors, in response to increased demand for new equipment amidst record high commodity prices.
Deere lowered its full-year net income outlook to the range of $7.0 billion to $7.2 billion, vs. prior guidance of $7.0 billion to $7.4 billion.