Deere Ag Sales Not Enough

Though agricultural equipment sales for Deere & Co. (DE) were up 35 percent in the quarter based on a strong domestic ag industry, the company reported earnings for its July-ended Q308 5 cents lower than its estimate per share: $1.32, whereas the Zacks consensus was $1.37.  This number had not been augmented by analysts in any significant way in the past quarter, but marks the second-consecutive earnings miss for the company.

Shares were punished on the news this morning.  As of mid-day, DE is off over 7 percent, or roughly $5 per share.  Before the announcement, Deere held a Zacks Rank #3 (Hold) with a target price just over $74.  Currently, the shares are trading in the $64 range.

Analysts are expecting fiscal Q4 earnings of $1.15 per share and fiscal 2008 (ending October) earnings of $5.08.  Though the shares have succumbed to near-term pressure in today's market, it remains to be seen if analysts will aggressively ramp down expectations for the rest of the fiscal year.

Read the full analyst report on DE