Deere reports a strong Q2 but trims guidance

Deere & Co (NYSE: DE) is trading down in premarket on Thursday even though it reported better-than-expected financial results for its second quarter. 

Why is Deere stock down on Thursday?

The stock is being hit primarily because the agricultural equipment manufacturer trimmed its guidance for the future. $DE now forecasts its net income to print at about $7.0 billion. 

Analysts, in comparison, were at $7.5 billion instead. John C. May - the chief executive of Deere & Co said in a press release today:

Except for financial services, the New York listed firm took a hit to sales in all of its business segments in Q2. Deere stock is still up nearly 10% versus its year-to-date low. 

Notable figures in Deere Q2 earnings release

• Earned $2.37 billion versus the year-ago $2.86 billion
• Per-share earnings also declined from $9.65 to $8.53
• Net sales tanked 12% year-over-year to $15.23 billion
• Consensus was $7.86 a share on $13.29 billion of net sales

Deere & Co paid a quarterly dividend of $1.47 per share, as per its earnings report on Thursday. According to CEO May:

Wall Street currently has a consensus "overweight" rating on Deere stock.