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.

  • Corn prices rally to new record high

    Corn prices climbed to a record high Thursday, staging a fresh rally as investor gear up for the U.S. government's latest snapshot on corn production due Friday morning.

    "Analysts are making some pretty dire predictions," said Sal Gilbertie, chief investment of Teucrium Trading, which runs the Teucrium Corn ETF (CORN).

    Corn prices are up more than 60% over the last seven weeks as the worst drought in more than half a century blankets the MORE

    - Aug 9, 2012 2:03 PM ET
  • Pizza party! Papa John's is a hot stock

    Who doesn't like pizza? Whether it's hot out of the oven or cold leftovers from the fridge the morning after some late-night reveling, pizza is a go-to meal for many Americans. And that's been great news for Papa John's (PZZA). The company reported earnings that topped forecasts Wednesday morning, sparking a nice pop in the stock.

    Traders on StockTwits debated the merits of Papa John's food (and stock) versus its key MORE

    - Aug 1, 2012 11:44 AM ET
  • Corn prices hit record as crops shrivel

    Corn prices surged to a new record high Tuesday, as the worst drought in more than 50 years continues to plague more than half the country.

    Almost 90% of the United States' corn crops are in drought ravaged areas, according to the U.S. Department of Agriculture, and nearly 40% are situated in the hardest hit spots.

    Corn prices have soared more than 50% during the past six weeks as the crops continue MORE

    - Jul 31, 2012 9:55 AM ET
  • Corn prices spike amid Midwest drought

    Corn prices have soared more than 40% in recent weeks as the scorching, dry heat wreaks havoc on crops in the Midwest.

    Prices went as high as $7.33 per bushel of corn on the Chicago Board of Trade Monday, not far from the record high of $7.9975 hit last June, amid worries about flood damage. Prices eased slightly Tuesday, as investors await the U.S. Department of Agriculture's updated forecast for harvest yields, which is due MORE

    - Jul 10, 2012 11:52 AM ET
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
Strong $GPRO policy. Treasury should put Hero4 on dollar bill. In GoPro We Trust? Crazy. Up 7%. Once again, my #StupidStock Move of the day!
Powered by WordPress.com VIP.
Follow

Get every new post delivered to your Inbox.

Join 240 other followers