The Rising Influence of Rising Affluence

[DewDiligence]

DE logs solid FY3Q14, but cuts GAAP EPS guidance for FY2014 (ending 10/25/14) from $8.64 (based on 380M diluted shares—see #msg-102378717) to $8.49 (based on 365 diluted shares, the share count used for the FY3Q14 calculation). By comparison, DE’s GAAP EPS in FY2013 was $9.09 based on 382M diluted shares.

Despite the lowered guidance, DE is trading flattish today because: i) the lowered guidance was widely expected based on the low spot prices of corn and soybeans; and ii) DE’s valuation is very low in the first place.

Note from the above how aggressively DE has been buying back its shares.

FY3Q14 detailed financial results:
http://www.sec.gov/Archives/edgar/data/315189/000110465914060196/a14-18750_1ex99d1.htm

FY3Q14 CC slides:
http://www.deere.com/en_US/docs/Corporate/investor_relations/pdf/financialdata/reports/2014/2014_thirdquarter_confcallslides.pdf