Deere & Company (NYSE:DE) shares tumbled Thursday after the agricultural equipment giant posted mixed third-quarter results and trimmed its full-year profit forecast, highlighting persistent headwinds from declining sales,

Deere & Co reported a drop in third-quarter profit on Thursday and warned of a bigger tariff hit than previously expected, sending shares of the farm-equipment maker down 7% in morning trade.

Higher tariffs and lower crop prices are dampening demand for John Deere equipment as the company says many of its customers "remain cautious" about the economy. Why it matters: Deere serves as a reflection of the health of the American agricultural sector and construction industry.