Deere Drops On Revenue Miss

Deere & Company DE has given up over $745 million in market cap Wednesday morning as shares drop on a weak earnings report.

Second quarter EPS of $2.65 was 7.29 percent higher than predicted, but $9.25 billion is a $400 million miss. These figures are four percent and nine percent lower, respectively, than the same period last year.

Much of this drop can be attributed to weak equipment sales. The division saw North American revenue drop 12 percent this quarter and down six percent for the year. Sales outside of North America dropped six percent this quarter.

John Deere announced a mediocre forward outlook. North American sales for the agriculture & Turf division are supposed to grow from zero to five percent, construction and forestry sales are supposed to increase by ten percent and financial services are supposed to add $600 million of income, a slight increase from 2013.

Chairman and CEO Samuel Allen stated, “We kept costs and assets well under control while successfully managing major new-product transitions associated with more stringent emissions standards. In addition, our construction and forestry and financial services operations delivered improved results, reflecting the power of our broad-based business lineup.

"We're confident our extensive investments in new products and markets, coupled with a tight rein on costs and assets, will keep the company on a sound financial footing and help sustain our growth plans.”

Shares of John Deere are currently down 2.12 percent to $91.63 in Wednesday's trading.