Deere stock sinks toward 15-month low as downbeat industry, supply-chain outlook trumps earnings beat
Shares of Deere & Co. (DE) plunged 14.9% toward a 15-month low in afternoon trading Friday, after the maker of construction, agriculture and forestry equipment beat fiscal second-quarter profit and revenue expectations but warned that headwinds from supply-chain constraints were expected to continue in the coming quarters. While the company affirmed fiscal 2022 sales growth guidance for its business segments, it lowered its outlook for overseas growth in agriculture and turf, and for the forestry and roadbuilding industries. Chief Financial Officer Ryan Campbell said on the post-earnings conference call with analysts that the supply chain related constraints that weighed on its latest quarterly results "will not likely abate during this fiscal year," according to a FactSet transcript. He said the fact that those supply chain constraints come while agriculture demand remains "strong," Campbell added that "we do not see the industry being able to meet all of the demand that exists in 2022." The stock, which was headed for the biggest one-day selloff since it plummeted 19.7% on March 20, 2020, has slipped 9.5% year to date, while the S&P 500 has shed 19.4%.
(END) Dow Jones Newswires
May 20, 2022 15:00 ET (19:00 GMT)
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