NEW YORK (TheStreet) -- Shares of Deere & Co. (DE) are down -0.79% to $85.80 after the company reported a lower quarterly profit and cut its full-year forecast as farmers facing a bumper crop and declining grain prices continued to pull back on purchases of the company's tractors, harvesters and other machinery, Reuters reports.
The posted a net profit of $850.7 million, or $2.33 per share, for the third quarter ended July 31, compared with $996.5 million, or $2.56 per share, a year ago.
Sales slid 5% to $9.5 billion.
Analysts on average expected Deere to post a profit of $2.22 per share on sales of $8.75 billion, according to Thomson Reuters I/B/E/S.
Deere expects to earn $3.1 billion in fiscal 2014, down from its previous forecast of $3.3 billion, because of falling farm income in the U.S., among other factors.
TheStreet Ratings team rates DEERE & CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DEERE & CO (DE) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."