Deere Reports Q1 Beat But Guides Equipment Sales Lower In Q2 & Full Year 2016

Shares of Deere & Company DE were trading lower by more than 1.25 percent after the company reported its first quarter results. Deere said that it earned $0.80 per share in the first quarter on revenue of $5.525 billion. Wall Street analysts were expecting the company to earn $0.70 per share on revenue of $4.94 billion. Deere note that total net sales of worldwide equipment operations fell 15 percent in the quarter while equipment sales in the U.S. and Canada fell 18 percent. Net income for the quarter fell to $254.4 million from $386.8 million. Deere cited lower shipment volumes, unfavorable currency exchange rates and a less favorable product mix in its results. Deere expects its equipment sales to fall 8 percent in the second quarter and decrease about 10 percent for the fiscal year. Net income for the full year is expected to be around $1.3 billion. "Although Deere expects another challenging year in 2016, our forecast represents a level of performance much better than we have experienced in previous downturns," said Samuel R. Allen, chairman and chief executive officer. "This illustrates the impact of our efforts to establish a more durable business model and a wider range of revenue sources. As a result, the company's financial condition remains strong and we are well-positioned to continue investing in innovative products, advanced technology and new markets. These actions, we're confident, will provide significant value to our customers and investors in the years ahead."