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Deere Tops Second-Quarter Estimates, Affirms Soft Full-Year Forecast Amid Farm-Sector Strains

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Deere Tops Second-Quarter Estimates, Affirms Soft Full-Year Forecast Amid Farm-Sector Strains

Deere's (DE) fiscal second-quarter results exceeded Wall Street's expectations, and the company on Thursday reaffirmed its soft full-year earnings outlook amid continued pressure in global agricultural markets.

In the three months ended May 3, the agricultural and construction equipment maker's per-share earnings fell to $6.55 from $6.64 a year earlier, and net sales rose 5% to $11.78 billion. Analysts polled by FactSet expected EPS of $5.78 and sales of $11.55 billion.

Deere continues to expect fiscal 2026 net income of $4.5 billion to $5 billion, or $4.75 billion at the midpoint, while analysts project $4.79 billion. The company reported $5.03 billion in fiscal 2025 net income.

"Our performance in the current market environment demonstrates the strength of our diversified portfolio," CEO John May said in a statement. "As we address ongoing challenges within global agricultural markets, our comprehensive portfolio continues to drive market share expansion and support our targets for sustained growth."

The guidance implies full-year EPS of about $17.55 at the midpoint, compared with the Wall Street consensus at $17.87, Truist Securities said in a report.

Deere shares fell 7.6% in Thursday trading. They have gained 12% this year.

Second-quarter sales in the production and precision agriculture business, a segment focused on large-scale farming, fell 14% to $4.5 billion. Analysts polled by FactSet expected $4.6 billion.

Revenue from the small agriculture and turf division jumped 16% to $3.49 billion, topping the consensus of $3.37 billion.

The construction and forestry segment's sales surged 29% to $3.79 billion. Analysts projected $3.46 billion.

Price: $518.00, Change: $-42.46, Percent Change: -7.58%

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