Deere Misses Estimates Amid Tariff Concerns, Trade Woes

The video discusses the challenges faced by Deere due to the global trade war, highlighting a significant drop in their shares. The earnings report met sales expectations but missed profit estimates, largely due to increased input costs from tariffs and reduced spending by farmers. The CFO noted a reduction in margin forecasts, with higher costs for steel and aluminum impacting profitability. A comparison with Caterpillar shows differing market expectations, with Deere's performance surprising Wall Street.

What was the primary reason for the tractor maker's shares falling more than 2%?

• A significant miss on the bottom line

• A successful earnings report

• An increase in sales expectations

• A new competitor entering the market

How did tariffs specifically impact the tractor maker's costs?

• They reduced the cost of steel and aluminum

• They increased the cost of steel and aluminum

• They had no impact on material costs

• They decreased the cost of labor

What was the CFO's observation about farmers' spending habits?

• Farmers are hesitant to spend on large agricultural products

• Farmers are increasing their spending on all products

• Farmers are spending more on large agricultural products

• Farmers are unwilling to spend on small agricultural products

What was the expectation for the tractor maker compared to Caterpillar?

• The tractor maker was expected to perform worse than Caterpillar

• Both companies were expected to perform equally

• Caterpillar was expected to outperform the tractor maker

• The tractor maker was expected to perform better than Caterpillar

How did Wall Street react to the tractor maker's profit miss?

• They were indifferent

• They were pleasantly surprised

• They were disappointed and surprised

• They expected the miss