Earlier this morning, Deere & Co. (NYSE: DE) reported third-quarter earnings that dropped 27% as a result of falling sales during the past quarter. The farming equipment firm reported quarterly earnings of 99 cents per share, easily topping the consensus estimate of 57 cents per share. While the results crushed the Street's estimate, it fell short of DE's year-ago performance. Quarterly revenue fell 24% compared to a year ago to $5.89 billion -- which again easily bested the consensus estimate for $5.25 billion.
Understandably, farmers were hesitant to spend a lot of money during the economic downturn. The question is, will they be willing to ramp up their spending in the current quarter? I'm guessing that will not be the case, so we could see another quarter where DE has sluggish sales, which would impact the company's bottom line yet again.
Poor sales aren't exactly what DE stock needs right now, as it has struggled of late. On a monthly basis, the equity faces resistance from its 20- and 50-month moving averages, which both loom overhead slightly below the $50 level. The good news is that the stock is in the $44 region, so there is a chance for the stock to react positively to today's news.
For more information about DE, check out Beth Gaston Moon's comments on the stock.
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