Though agricultural equipment sales for Deere & Co. (NYSE: DE - News) 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.
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