Deere (DE) reported earnings on Fri 19 May 17 (b/o)

** charts before earnings **

 

** charts after earnings **

 

Deere beats EPS, reports revs in-line; guides Q3 revs above consensus; raises FY17 above consensus:

• Reports Q2 (Apr) earnings of $2.14 per share, excluding $111 mln after tax gain from SitoOne sale, non-recurring items, $0.45 better than the Capital IQ Consensus of $1.69; revenues rose 2.2% year/year to $7.26 bln vs the $7.27 bln Capital IQ Consensus. Sales included price realization of 2 percent for both periods. Foreign-currency rates did not have a material translation effect on net sales for either the quarter or first six months compared with the same periods in the prior year. Equipment net sales in the United States and Canada decreased 5 percent for the quarter and were down 6 percent for the first six months. Outside the U.S. and Canada, net sales increased 14 percent for the quarter and 13 percent for the first six months, with no material effect of currency translation in either period. Improving demand for farm and construction equipment leads to higher second-quarter results. Key markets show signs of further stabilization. The improvement for the quarter was primarily driven by price realization, the impact of a favorable sales mix, favorable effects of foreign-currency exchange and higher shipment volumes, partially offset by higher warranty costs.
• Co issues upside guidance for Q3, sees Q3 revs +18% to ~$6.92 bln vs. $6.24 bln Capital IQ Consensus Estimate.
• Co issues upside guidance for FY17, raises FY17 revs to +9% to ~$25.5 bln from +4% vs. $24.16 bln Capital IQ Consensus Estimate; raises net income to $2 bln from $1.5 bln.