![Deere Q2 results are Top Street, but lower 2024 profit outlook again as farmers buy fewer tractors 1 Deere Q2 results are Top Street, but lower 2024 profit outlook again as farmers buy fewer tractors](https://www.trendfeedworld.com/wp-content/uploads/2024/05/Deere-Q2-results-are-Top-Street-but-lower-2024-profit.jpg)
Deere's second-quarter results beat Wall Street expectations, but the company lowered its full-year profit forecast for a second time as farmers buy fewer tractors and other equipment as they face falling prices for their crops.
Deere, a company that makes agricultural equipment, lowered its profit forecast to $7 billion from $7.50 billion. Previously, the company forecast 2024 earnings of between $7.75 billion and $8.25 billion.
Shares fell more than 5% before the market opened Thursday.
The U.S. Department of Agriculture expects net farm income, which is a broad measure of profits, to total $116.1 billion by 2024. That is 25.5% less than a year earlier. Adjusted for inflation, net farm income is expected to decline 27.1% this year as farmers struggle with lower soybean and corn prices. The USDA said lower direct government payments and higher production costs are also weighing on farmers.
For the three months ending April 28, Deere & Co. earned $2.37 billion, or $8.53 per share. A year earlier, the company earned $2.86 billion, or $9.65 per share.
The performance easily exceeded the $7.86 per share that analysts surveyed by Zacks Investment Research had hoped for.
The Moline, Ill.-based company's revenue fell 12% to $15.24 billion. Adjusted revenue – excluding finance and interest income – was $13.61 billion, higher than Wall Street's estimate of $13.26 billion.
Sales for the small farm and turf division, which includes certain medium and small tractors and other equipment, fell 23% to $3.19 billion. Revenues for the manufacturing and precision agriculture unit, which includes large and certain medium tractors, combines and other equipment, fell 16% to $6.58 billion.