Shares of farm equipment maker John Deere (DE) are falling after the company gave a gloomy outlook, despite delivering an earnings beat for the fourth quarter. Deere posted adjusted earnings per share of $2.14, ahead of analysts’ estimates of $ 2.13, on revenue of $9.89B, eclipsing Wall Street expectations of $8.43B. CEO COMMENTARY: “John Deere’s performance reflected continued uncertainties in the agricultural sector,” said Deere CEO John May. “Lingering trade tensions coupled with a year of difficult growing and harvesting conditions have caused many farmers to become cautious about making major investments in new equipment. Additionally, financial services results have come under pressure due to operating-lease losses. At the same time, general economic conditions have remained favorable. This has supported demand for smaller equipment and led to solid results for Deere’s construction and forestry business, which had a record year for sales and operating profit.” MARKET CONDITIONS AND OUTLOOK: The company said it sees sales pressured from all business sectors in 2020, especially Construction & Forestry. Deere’s worldwide sales of construction and forestry equipment are anticipated to be down 10%-15% for FY20. Deere sees FY20 net income of $2.7B-$3.1B. “Despite present challenges, the longer-term outlook for our businesses remains healthy and points to a promising future for Deere,” CEO John May said. “We are particularly encouraged by the adoption of precision technologies and believe we are well-positioned to be a leader in the delivery of smarter, more efficient and sustainable solutions to our customers.” PRICE ACTION: Shares of Deere & Company are down 4.7%, or $8.24 per share, to $168.50 in afternoon trading. Other Construction/Farm Equipment shares are also lower, including Agco (AGCO), Caterpillar (CAT), Cummins (CMI), Chicago Rivet (CVR), CNH Industrial (CNHI), Titan Machinery (TITN), and Lindsay (LNN).