The Rising Influence of Rising Affluence

[DewDiligence]

DE FY3Q22* results—lowers FY2022* EPS guidance slightly…

FY3Q22 PR:
https://s22.q4cdn.com/253594569/files/doc_financials/2022/q3/DE-3Q22-News-Release-and-Financials.pdf

CC slides:
https://s22.q4cdn.com/253594569/files/doc_financials/2022/q3/DE-3Q22-Earnings-Call-Presentation.pdf


DE experienced high-single-digit YoY inflation in raw materials and other cost-of-sales inputs, but more than offset these increases with ~10% price YoY increases.

New FY2022 GAAP EPS guidance is $22.95-23.60 (based on 305M diluted shares), down about $0.25 from the guidance three months ago at both the lower and higher bounds of the guidance range, but still up sharply from the guidance $20.70-22.30 nine months ago.

DE’s FY2022 GAAP guidance includes a $220M ($0.71/sh) non-recurring gain in FY2Q22; without thise non-recurring item, FY2022 EPS guidance would be $22.24-22.89. At the current share price (~$364), the above EPS range represents a FY2022 P/E ratio of 15.9-16.4.

*DE’s fiscal year ends on Oct 31.