The Rising Influence of Rising Affluence

[DewDiligence]

DE FY4Q22* results…

In FQ4Q22, DE logged impressive volume and pricing gains in all three operating segments. The strong US dollar crimped ex-US sales, but this was scarcely noticeable in the overall picture.

PR:
https://www.sec.gov/Archives/edgar/data/315189/000155837022018162/de-20221123xex99d1.htm

CC slides:
https://investor.deere.com/files/doc_financials/2022/q4/DE-4Q22-Earnings-Call-Presentation.pdf


FY4Q22: Sales $15.5B, +37% YoY; GAAP EPS $7.44, +81% YoY.

FY2022 (12m): Sales $52.6B, +19% YoY; GAAP EPS $23.28, +23% YoY.

DE is today issusing guidance for FY2023* of $26.67-28.33 (based on 300M diluted shares), representing a YoY increase of 15-21%.

At the current share price (~$430), the above EPS range represents a FY2023 P/E ratio of 15-16.

*DE’s fiscal years end on Oct 31.