Shares of Deere & Co. (DE) plunged 8.05% in pre-market trading on Thursday following the release of its disappointing third-quarter earnings report. The farm equipment manufacturer reported a significant decline in profit and lowered its full-year guidance, citing muted demand and headwinds from U.S. tariffs as key factors impacting its performance.

For the third quarter, Deere's net income fell to $1.29 billion, or $4.75 per share, compared to $1.73 billion, or $6.29 per share, in the same period last year. While the earnings per share surpassed analysts' expectations of $4.63, the overall financial picture remained gloomy. The company's revenue dropped 9% to $12.018 billion, reflecting the challenging market conditions faced by the agricultural sector.

Adding to investors' concerns, Deere narrowed its full-year net income guidance to a range of $4.75 billion to $5.25 billion, down from its previous upper-end forecast of $5.50 billion. The revised outlook takes into account ongoing challenges such as low crop prices, which have been dampening farmers' willingness to invest in new equipment. Furthermore, a trend towards machinery rental instead of purchasing has been observed, further impacting Deere's sales of big-ticket items like tractors and combines. As the company grapples with these headwinds, it remains focused on advancing productivity through technologies and aligning production with retail demand to promote a healthier market environment.