Deere Forecasts Downbeat Profit As High Borrowing Costs Pinch Demand
Reuters2023-11-22
Deere & Co forecast 2024 profit below analysts' estimates on Wednesday as high borrowing costs and squeezed budgets dented demand for farm equipment.
The world's largest farm equipment maker expects 2024 net income between $7.75 billion and $8.25 billion, compared with analysts' average expectations of $9.33 billion, according to LSEG data.
Rising dealer inventories have investors worried that demand for farming equipment might have peaked.
Net income rose to $2.37 billion, or $8.26 per share, for the quarter through October from $2.25 billion, or $7.44 per share, a year earlier.
Total net sales and revenue fell about 1% to $15.41 billion.
Stocks fell over 6% in premarket trading.
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