Deere 4th-quarter results surpass estimates, but shares skid on farm equipment maker's outlook

MarketsAssociated Press

Deere's fourth-quarter results were stronger than Wall Street expected but it says its farm equipment sales and profits will keep falling in its new fiscal year as the sector remains weak.

Its shares fell more than 2 percent in premarket trading on Wednesday.

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Deere & Co. says its annual net income will drop about 40 percent and revenue from agricultural and turf equipment will fall further than it did in fiscal 2014.

In August the Moline, Illinois, company lowered its outlook and said it would cut production in response to weak sales.

Deere says it earned $649.2 million, or $1.83 per share, in the fourth quarter on $8.97 billion in revenue.

FactSet says analysts expected a profit of $1.57 per share and $7.73 billion in revenue.

The company's shares are down $2.03, or 2.3 percent, to $85.76 in premarket trading.