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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

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.

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Maureen Farrell
Maureen Farrell
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Maureen Farrell is a staff writer at CNNMoney and covers Wall Street, banking, mergers and the stock and bond markets. Prior to joining CNNMoney, she covered venture capital and entrepreneurs for Forbes, and mergers and bankruptcy for Mergermarket and Debtwire, both divisions of the Financial Times.

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