{"id":31197,"date":"2016-02-19T16:05:45","date_gmt":"2016-02-19T22:05:45","guid":{"rendered":"http:\/\/news.medill.northwestern.edu\/chicago\/?p=31197"},"modified":"2016-02-23T14:12:28","modified_gmt":"2016-02-23T20:12:28","slug":"deere-beats-analyst-expectations-stock-slides-on-soft-forecast","status":"publish","type":"post","link":"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/","title":{"rendered":"Deere profit tops expectations, stock slides on soft forecast"},"content":{"rendered":"

By Alison Martin<\/strong><\/p>\n

Deere and Co.\u2019s first quarter earnings handily beat analyst expectations Friday, but Deere shares came under pressure after the agricultural-equipment giant dismayed investors with a downbeat full-year forecast.<\/p>\n

In the quarter ended. Jan. 31, the maker of iconic green-and-yellow tractors reported its net income of $254.4 million, or 80 cents per diluted share, a 34 percent decline from 2015\u2019s first quarter net income of $386.8 million, or $1.12 per share.<\/p>\n

Revenues fell by 13 percent to $5.525 billion from $6.38 billion in last year\u2019s quarter.<\/p>\n

Deere\u2019s per-share earnings topped by 9 cents the 71 cents analysts had been expecting.<\/p>\n

“John Deere’s first-quarter results reflected the continuing impact of the downturn in the global farm economy as well as weakness in construction equipment markets,” said chairman and CEO Samuel R. Allen said in a company press release.<\/p>\n

“At the same time, all of Deere’s businesses remained solidly profitable,\u201d he said, \u201cbenefiting from the sound execution of our business plans and the success of actions to develop a more responsive cost structure.”<\/p>\n

With commodity grain prices dropping and farm incomes across the globe remaining stagnant, the company expects a lesser demand for new equipment, especially its higher-horsepower models.<\/p>\n

Deere also warned investors that it now expects full-year 2016 sales to decline by 10 percent, a deeper falloff than the 7 percent decline officials had projected in late autumn.<\/p>\n

Investors didn\u2019t like the news: In mid-afternoon New York Stock Exchange trading Friday, Deere shares were down $2.95, or 3.7 percent, at $77.38. Analyst Kwame Webb of Morningstar, Inc., however, isn\u2019t worried just yet.<\/p>\n

\u201cWe continue to have a high degree of confidence in Deere\u2019s longer-term prospects,\u201d Webb said, \u201cbut shares would have to trade below $73 before beginning to look undervalued in our opinion.\u201d<\/p>\n

Unfavorable currency-exchange rates are also playing a role. In the U.S. and Canada, Deere saw an 18 percent decrease in sales, but in international markets the company saw a 9 percent decrease in net sales, due in part to the dollar\u2019s strengthening over the last year.<\/p>\n

Deere & Co\u2019s EPS by Quarter<\/h2>\n

[field name=”chart”]<\/p>\n

Planting season in Q2 favorably affects Deere\u2019s EPS. (Alison Martin\/MEDILL)<\/div>\n

Deere did manage to cut its costs and expenses compared to this time last year. Its costs and expenses totaled $5.17 billion, down from 2015\u2019s $5.82 billion.<\/p>\n

Strong planting and harvesting seasons, favorable weather and a higher demand for agricultural products could positively impact Deere\u2019s financial outlook over the course of the year.<\/p>\n

Deere\u2019s stock has yet to recover from its painful drop in August 2015, when its shares plunged from $97.14 to $79.09 over a span of 15 days, during which the company announced it would be cutting workers at plants in Illinois, Iowa and Kansas.<\/p>\n

Photo at the top: Deere & Co.’s EPS came in at 80 cents, 9 cents above analyst expectations.<\/div>\n","protected":false},"excerpt":{"rendered":"

By Alison Martin Deere and Co.\u2019s first quarter earnings handily beat analyst expectations Friday, but Deere shares came under pressure after the agricultural-equipment giant dismayed investors with a downbeat full-year forecast. In the quarter ended. Jan. 31, the maker of iconic green-and-yellow tractors reported its net income of $254.4 million, or 80 cents per diluted […]<\/p>\n","protected":false},"author":201,"featured_media":31202,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27,585],"tags":[1549,1547,1548,1550],"class_list":["post-31197","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-winter-2016","tag-agricultural-equipment-market","tag-deere-co","tag-farm-economy","tag-grain-prices"],"yoast_head":"\nDeere profit tops expectations, stock slides on soft forecast - Medill Reports Chicago<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Deere profit tops expectations, stock slides on soft forecast - Medill Reports Chicago\" \/>\n<meta property=\"og:description\" content=\"By Alison Martin Deere and Co.\u2019s first quarter earnings handily beat analyst expectations Friday, but Deere shares came under pressure after the agricultural-equipment giant dismayed investors with a downbeat full-year forecast. In the quarter ended. Jan. 31, the maker of iconic green-and-yellow tractors reported its net income of $254.4 million, or 80 cents per diluted […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/\" \/>\n<meta property=\"og:site_name\" content=\"Medill Reports Chicago\" \/>\n<meta property=\"article:published_time\" content=\"2016-02-19T22:05:45+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2016-02-23T20:12:28+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/news.medill.northwestern.edu\/chicago\/wp-content\/uploads\/sites\/3\/2016\/02\/jd.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"526\" \/>\n\t<meta property=\"og:image:height\" content=\"550\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"alisonmartin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"alisonmartin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/\",\"url\":\"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/\",\"name\":\"Deere profit tops expectations, stock slides on soft forecast - Medill Reports Chicago\",\"isPartOf\":{\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/news.medill.northwestern.edu\/chicago\/wp-content\/uploads\/sites\/3\/2016\/02\/jd.jpg\",\"datePublished\":\"2016-02-19T22:05:45+00:00\",\"dateModified\":\"2016-02-23T20:12:28+00:00\",\"author\":{\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/#\/schema\/person\/b6d8b8efab1cb1b1ae38f8d83c771a1b\"},\"breadcrumb\":{\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/#primaryimage\",\"url\":\"https:\/\/news.medill.northwestern.edu\/chicago\/wp-content\/uploads\/sites\/3\/2016\/02\/jd.jpg\",\"contentUrl\":\"https:\/\/news.medill.northwestern.edu\/chicago\/wp-content\/uploads\/sites\/3\/2016\/02\/jd.jpg\",\"width\":526,\"height\":550,\"caption\":\"Deere & Co.'s EPS currently sits at 80 cents, 9 cents above analysts' expectations.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/news.medill.northwestern.edu\/chicago\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Deere profit tops expectations, stock slides on soft forecast\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/#website\",\"url\":\"https:\/\/news.medill.northwestern.edu\/chicago\/\",\"name\":\"Medill Reports Chicago\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/news.medill.northwestern.edu\/chicago\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/#\/schema\/person\/b6d8b8efab1cb1b1ae38f8d83c771a1b\",\"name\":\"alisonmartin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/news.medill.northwestern.edu\/chicago\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/943dbbdfe8582962490ddb378bd125698ec437cddec377906d0507e155f7b894?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/943dbbdfe8582962490ddb378bd125698ec437cddec377906d0507e155f7b894?s=96&d=mm&r=g\",\"caption\":\"alisonmartin\"},\"url\":\"https:\/\/news.medill.northwestern.edu\/chicago\/author\/alisonmartin\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Deere profit tops expectations, stock slides on soft forecast - Medill Reports Chicago","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/","og_locale":"en_US","og_type":"article","og_title":"Deere profit tops expectations, stock slides on soft forecast - Medill Reports Chicago","og_description":"By Alison Martin Deere and Co.\u2019s first quarter earnings handily beat analyst expectations Friday, but Deere shares came under pressure after the agricultural-equipment giant dismayed investors with a downbeat full-year forecast. In the quarter ended. Jan. 31, the maker of iconic green-and-yellow tractors reported its net income of $254.4 million, or 80 cents per diluted […]","og_url":"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/","og_site_name":"Medill Reports Chicago","article_published_time":"2016-02-19T22:05:45+00:00","article_modified_time":"2016-02-23T20:12:28+00:00","og_image":[{"width":526,"height":550,"url":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-content\/uploads\/sites\/3\/2016\/02\/jd.jpg","type":"image\/jpeg"}],"author":"alisonmartin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"alisonmartin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/","url":"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/","name":"Deere profit tops expectations, stock slides on soft forecast - Medill Reports Chicago","isPartOf":{"@id":"https:\/\/news.medill.northwestern.edu\/chicago\/#website"},"primaryImageOfPage":{"@id":"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/#primaryimage"},"image":{"@id":"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/#primaryimage"},"thumbnailUrl":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-content\/uploads\/sites\/3\/2016\/02\/jd.jpg","datePublished":"2016-02-19T22:05:45+00:00","dateModified":"2016-02-23T20:12:28+00:00","author":{"@id":"https:\/\/news.medill.northwestern.edu\/chicago\/#\/schema\/person\/b6d8b8efab1cb1b1ae38f8d83c771a1b"},"breadcrumb":{"@id":"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/#primaryimage","url":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-content\/uploads\/sites\/3\/2016\/02\/jd.jpg","contentUrl":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-content\/uploads\/sites\/3\/2016\/02\/jd.jpg","width":526,"height":550,"caption":"Deere & Co.'s EPS currently sits at 80 cents, 9 cents above analysts' expectations."},{"@type":"BreadcrumbList","@id":"https:\/\/news.medill.northwestern.edu\/chicago\/deere-beats-analyst-expectations-stock-slides-on-soft-forecast\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/news.medill.northwestern.edu\/chicago\/"},{"@type":"ListItem","position":2,"name":"Deere profit tops expectations, stock slides on soft forecast"}]},{"@type":"WebSite","@id":"https:\/\/news.medill.northwestern.edu\/chicago\/#website","url":"https:\/\/news.medill.northwestern.edu\/chicago\/","name":"Medill Reports Chicago","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/news.medill.northwestern.edu\/chicago\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/news.medill.northwestern.edu\/chicago\/#\/schema\/person\/b6d8b8efab1cb1b1ae38f8d83c771a1b","name":"alisonmartin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/news.medill.northwestern.edu\/chicago\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/943dbbdfe8582962490ddb378bd125698ec437cddec377906d0507e155f7b894?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/943dbbdfe8582962490ddb378bd125698ec437cddec377906d0507e155f7b894?s=96&d=mm&r=g","caption":"alisonmartin"},"url":"https:\/\/news.medill.northwestern.edu\/chicago\/author\/alisonmartin\/"}]}},"_links":{"self":[{"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/posts\/31197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/users\/201"}],"replies":[{"embeddable":true,"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/comments?post=31197"}],"version-history":[{"count":0,"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/posts\/31197\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/media\/31202"}],"wp:attachment":[{"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/media?parent=31197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/categories?post=31197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.medill.northwestern.edu\/chicago\/wp-json\/wp\/v2\/tags?post=31197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}