Deere Stock Plummets on Disappointing Sales and Profit Outlook
Deere's stock tumbled after the company reported better-than-expected earnings for the fiscal fourth quarter but warned of a double-digit drop in sales in the new fiscal year. The company's guidance, which anticipates a return to "mid-cycle" sales levels, dragged down stocks of other machinery giants like Caterpillar and AGCO. Deere's outlook reflects the impact of higher interest rates on the agricultural sector and a decrease in order backlog as equipment dealers no longer need to build up inventories. The company expects a decline in sales for both large and smaller agricultural equipment, as well as a pullback in the construction sector.
