Deere stock drops toward longest losing streak in 4 year, as supply chain challenges seen persisting
Shares of Deere & Co.
reversed to a loss of 2.0% in afternoon trading, erasing an earlier intraday gain of as much as 2.3%, after the construction, agriculture and turf care equipment maker reported big fiscal third-quarter profit and sales beats, but said it expected supply chain challenges to last. Deere’s stock was headed for a seventh-straight decline, which would be the longest streak of losses since the seven-day stretch that ended June 27, 2017. Chief Financial Officer Ryan Campbell said on the post-earnings conference call with analysts that in some cases supply chain challenges the company had been experiencing had become more “complicated.” He said one of the challenges, is that the it’s not one select issue, as they include labor and logistics. “At this time, we expect many of these challenges to persist through the end of this year and into next,” Campbell said, according to a FactSet transcript. Deere’s stock has shed 1.0% over the past three months, while the SPDR Industrial Select Sector ETF
has inched up less than 0.1% and the S&P 500
has gained 6.6%.