(By Balaseshan) Deere & Co. (NYSE:DE) reported a 11% increase in quarterly earnings on higher sales of construction equipment and agriculture machines. However, earnings missed consensus and the company cut its fiscal 2012 growth outlook, sending its shares down 5.65% in premarket.
Earnings for the third quarter were $788.0 million or $1.98 per share, up from $712.3 million or $1.69 per share last year.
Worldwide net sales and revenues grew 15% to $9.59 billion. Net sales of the equipment operations climbed 16% to $8.93 billion from $7.72 billion. Sales included price realization of 5% and an unfavorable currency-translation effect of 5%.
Analysts, on average, polled by Thomson Reuters had expected a profit of $2.31 per share on revenue of $9.53 billion for the third quarter.
Equipment net sales in the United States and Canada jumped 28%, while sales outside the U.S. and Canada were essentially unchanged for the quarter with unfavorable currency-translation effects of 11%.
Agriculture & Turf sales grew 14%, largely due to higher shipment volumes and price realization, partially offset by the unfavorable effects of currency translation. Construction and forestry sales soared 23% mainly due to higher shipment volumes and price realization.
Looking ahead into the fourth quarter, the company anticipates Agriculture & Turf sales growth of about 13% over last year. Street analysts predict a revenue growth of 13.80%.
For the fiscal 2012, the company lowered its Agriculture & Turf sales growth outlook to about 13% from previous forecast of about 15% and its construction and forestry sales growth estimate to about 17% from prior guidance of about 20%. Deere also cut its earnings guidance to about $3.1 billion from previous estimate of $3.35 billion. Street analysts predict revenue growth of 16.50%.
DE closed Tuesday's regular session up 0.46% at $80.13. The stock has been trading between $59.92 and $89.70 for the past 52 weeks.