12:53 PM EST, 11/21/2024 (MT Newswires) -- Shares of Deere (DE) soared intraday Thursday as the agricultural and construction equipment maker reported higher-than-expected fiscal fourth-quarter results despite industry headwinds that it suggested will persist through fiscal 2025.

Net sales fell to $9.28 billion for the three months ended Oct. 27 from $13.8 billion the year earlier but topped the $9.1 billion average analyst estimate on FactSet. Earnings per share tumbled to $4.55 from $8.26 year over year but beat Wall Street's $3.86 view. Shares of Deere gained 8.2% in midday trade.

"Amid significant market challenges this year, we proactively adjusted our business operations to better align with the current environment," Chief Executive John May said in a statement. "Together with the structural improvements made over the past several years, these adjustments enable us to serve our customers more effectively and achieve strong results across the business cycle."

In Deere's production and precision agriculture segment, sales plunged 38% to $4.31 billion amid lower shipment volumes. Small agriculture and turf sales fell 25% year over year to $2.31 billion while construction and forestry sales declined 29% to $2.66 billion.

For fiscal 2025, Deere is projecting net income between $5 billion and $5.5 billion, implying a decline from the $7.1 billion it reported for the year just ended.

The heavy equipment maker expects production and precision agriculture sales to decline 15% in the ongoing year, compared with the segment's 22% decline in fiscal 2024. It is guiding for a 10% sales decline in small agriculture and turf following last year's 22% fall.

A continued contraction of agricultural markets globally in 2025 will result in agriculture and turf equipment demand "at or below trough levels," Joshua Rohleder, Deere's manager of investor communications, told analysts on an earnings call, according to a FactSet transcript.

Construction and forestry revenue is expected to fall between 10% and 15% in fiscal 2025 following a 12% decline in the year that ended last month. "Healthy end markets" in this segment will be offset by ongoing equipment purchase uncertainty, which will impact market demand, he said.

Price: 436.83, Change: +31.87, Percent Change: +7.87