Deere and Co (DE): DE -4%/PM on soft FY2020* outlook… FY...

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DewDiligence

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Wednesday, 11/27/2019 8:40:07 AM

Wednesday, November 27, 2019 8:40:07 AM

DE -4%/PM on soft FY2020* outlook…

FY4Q19 PR:
https://s22.q4cdn.com/253594569/files/doc_financials/2019/q4/4Q_2019_News-Release-and-Financials.pdf

FY4Q19 CC slides:
https://s22.q4cdn.com/253594569/files/doc_financials/2019/q4/4Q_2019_Earnings-Call-Presentation.pdf

FY2019 full-year GAAP EPS was $10.15, slightly beating the (twice-lowered) guidance of $10.00 (#msg-150576031). In FY4Q19, agriculture-equipment comprised 66% of DE’s product sales, and construction/forestry equipment comprised 34%. (DE’s wholly-owned finance subsidiary is not consolidated for reporting sales.)

FY2020 guidance is for GAAP earnings of $2.7-3.1B, which equates to an (unusually wide) EPS range of $8.57-9.84 (based on 315 million diluted shares). This range is -16% to -3% relative to FY2019 GAAP EPS.

p.s. DE recently took advantage of ultra-low interest rates by raising $500M in 30-year debt at a rate of 2.875% (#msg-150925290)!

*Ending 10/31/20.

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