Deere (DE) reported earnings on Wed 27 Nov 2018 (b/o)

** charts after earnings **

 

Deere reports EPS in-line, beats on revs; guides FY20 below consensus 

Reports Q4 (Oct) earnings of $2.14 per share, excluding non-recurring items, in-line with the S&P Capital IQ Consensus of $2.14; revenues (equipment sales) rose 4.3% year/year to $8.7 bln vs the $8.41 bln S&P Capital IQ Consensus.

Guidance: Agriculture & Turf. Deere's worldwide sales of agriculture and turf equipment are forecast to decline 5 to 10 percent for fiscal-year 2020, including a negative currency-translation effect of 1 percent. Industry sales of agricultural equipment in the U.S. and Canada are forecast to be down about 5 percent, driven by lower demand for large equipment. Full-year industry sales in the EU28 member nations are forecast to be approximately flat as are South American industry sales of tractors and combines. Construction & Forestry. Deere's worldwide sales of construction and forestry equipment are anticipated to be down 10 to 15 percent for 2020, with foreign-currency rates having an unfavorable translation effect of 1 percent. Co sees FY20 net income of $2.7-3.1 bln.

• FY20 Capital IQ consensus calls for net equipment sales growth of +1.6%, so this guidance would translate to below consensus.