Why Deere (DE) Shares Are Sliding Today - Deere (NYSE:DE)

Deere & Company DE reported third-quarter FY22 net sales and revenue growth of 22% year-over-year to $14.1 billion, beating the consensus of $12.78 billion.
EPS increased to $6.16, missing the consensus of $6.69.
Sales by segments: Production & Precision Agriculture $6.1 billion (+43% Y/Y), Small Agriculture & Turf $3.64 billion (+16% Y/Y), and Construction & Forestry $3.27 billion (+8% Y/Y).
The operating profit increased by 18% Y/Y to $2.65 billion, and the margin contracted by 70 bps to 18.8%.
Deere's net cash provided by operating activities in the nine months totaled $418 million, compared to $4.31 billion a year ago. It held cash and cash equivalents of $5 billion as of July 31, 2022.
John C. May, chairman and CEO, said, "our results reflected higher costs and production inefficiencies driven by the difficult supply-chain situation."
FY22 Outlook: Deere expects a net income of $7.0 billion - $7.2 billion. (prior view $7.0 billion - $7.4 billion).
For Production & Precision Ag, the company expects sales to grow by 25% - 30%, Small Ag & Turf sales to expand by 10%-15%, and Construction & Forestry segment sales to increase by ~10%.
It expects Financial Services results to be slightly lower than FY21 due to a higher provision for credit losses and higher selling, administrative, and general expenses.
"Looking ahead, we believe favorable conditions will continue into 2023 based on the strong response we have experienced to early-order programs," added May.
Price Action: DE shares are trading lower by 2.94% at $356.56 during the market session on the last check Friday.
Photo Via Company

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