The Buzz

All markets and investing news all the time

Oh, Deere. Stock tumbles on earnings miss

August 15, 2012: 12:16 PM ET

Deere & Co's stock tumbled after the tractor maker slashed its 2012 forecast

Farm equipment maker Deere & Co. (DE) is taking a beating from the markets after a lousy earnings report on Wednesday.

The company cited an international slowdown in business as one reason it fell short of its third-quarter earnings forecast and had to slash its outlook for the rest of the year.

Investors were not happy and sent the stock more than 7% lower by midday.

Deere's numbers, particularly the company's expenses, drew questions, skepticism and sarcasm from the traders on StockTwits:

stephanie_link: $DE misses on lower Europe/Asia & prod start up costs. A&T in NA x 10%+ and C&F x 17% = solid NA. ROW softer. Still cant manage expenses...

OptionsHawk: $DE Deere does the opposite of most and misses big on EPS but beats on sales - weird

BryanMortenson: $DE 2mo ago expected large harvest and declining prices, now the opposite. Believe should translate to "a very positive year" in 2013. $$

BryanMortenson: $DE Projecting R&D spend up 15% and SGA spend up 9% in 2012. In a slowing growth environment, this could pressure margins further.

The drought was one odd bright spot. Deere said it could actually drive demand for its tractors and other products.

BryanMortenson: $DE Drought had minimal impact on results, don't think it will impact rest of year's results either. Tailwind for 2013? $$

Chase03670: Cash Receipts for farms will STILL be larger in 2012 than in 2011, despite impact of the drought $DE http://stks.co/l8jU

LukeKramer: $DE No need to panic here. Still very strong company. It's just weather played havoc. And no matter how good co u r, cant control weather.

Investors might not be panicked but the stock is down more than 4% this year.

Fear & Greed
Sponsored by

To view my watchlist

Not a member yet?

Sign up now for a free account
Stupid Stock Move of the Day
#StupidStock Moves of the Day! $CAT $JOY up 4%? China rate cut may eventually help. But it's also reflection of weaker Chinese economy now.
Powered by WordPress.com VIP.
Follow

Get every new post delivered to your Inbox.

Join 242 other followers