Deere & Co. slashed its guidance for fiscal 2019 as it reported third-quarter earnings that missed analysts' expectations.
The farm equipment maker lowered its full-year net income guidance to $3.2 billion from its previous outlook of $3.3 billion.
Adjusted EPS for the quarter ended July 28 rose to $2.71 from $2.59 in the year-ago period, missing the S&P Global Market Intelligence consensus estimate for normalized EPS of $2.84.
Non-GAAP net income increased to $867 million from $849 million in the prior-year period.
On a GAAP basis, net income came in at $899 million, or $2.81 per share, compared with $910 million, or $2.78 per share in the year-ago quarter.
Net sales for the quarter fell to $8.97 billion from $9.29 billion in the year-ago period, with sales at the company's equipment operations segment falling 3%, and sales at agriculture and turf segment dropping 6%. The Market Intelligence consensus estimate for revenue was $9.38 billion.
Deere Chairman and CEO Samuel Allen said the company's third-quarter results reflected the "high degree of uncertainty that continues to overshadow the agricultural sector."
"Concerns about export-market access, near-term demand for commodities such as soybeans, and overall crop conditions, have caused many farmers to postpone major equipment purchases," Allen said.