Deere & Co reported last Friday with the shares falling despite an earnings beat, third quarter EPS at $10.20, driven by equipment sales of $US14.3bn which was way ahead of analyst expectations of EPS of $8.22 and sales of $US14.1bn. FY 2023 guidance was also raised ~5%, to $9.75-$10bn but the stock fell almost -4% on the day due to investor concerns that the agricultural equipment boom is set to end – a surprising reaction in our opinion considering the “fresh news” was all positive.
- We believe the markets applying the same conservative outlook to FY24/5 that has weighed a number of stocks through this reporting season. – MM is holding Deere & Co (DE US) in our International Equities Portfolio
MM remains long and bullish towards Deere
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