WEB Pricing Helps Deere Maintain Earnings Despite Weakened Sales
Deere Beats Earnings Expectations Following Layoffs
Company Raises Full-Year Guidance
Deere & Company (DE) reported third-quarter earnings that beat analysts' expectations, despite a decline in sales. The company's strong pricing helped offset the impact of lower volumes, leading to a 12% increase in net income from the same period last year.
Deere's net income for the quarter was $2.34 billion, or $6.72 per share, compared to $2.09 billion, or $5.99 per share, a year ago. Revenue declined by 4% to $11.2 billion from $11.7 billion in Q3 2022.
The company's agricultural equipment sales fell by 7%, while construction and forestry equipment sales decreased by 2%. However, Deere's strong pricing helped to mitigate the impact of the sales decline. The company was able to increase prices by an average of 8% in the quarter.
- Deere & Company (DE) beat analysts' expectations for third-quarter profit.
- The company's strong pricing helped offset the impact of lower sales volumes.
- Deere raised its full-year guidance for net income.
Based on the strong results, Deere raised its full-year guidance for net income. The company now expects to earn between $7.00 and $7.20 per share for the year, up from its previous guidance of $6.70 to $7.00 per share.
Deere's stock price rose by 2% in premarket trading on Friday following the release of the earnings report.
Despite the strong earnings report, Deere is facing some challenges. The company announced in August that it would lay off about 600 employees across three US factories as part of a cost-cutting plan. The layoffs are expected to save the company about $50 million per year.
Overall, Deere's third-quarter results were positive. The company's strong pricing helped to offset the impact of lower sales volumes, and the company raised its full-year guidance. However, Deere is facing some challenges, including the need to cut costs.
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