The Rising Influence of Rising Affluence

[DewDiligence]

DE reports FY1Q24* results—reduces FY2024* guidance:

https://s22.q4cdn.com/253594569/files/doc_financials/2024/q1/DE-1Q24-News-Release.pdf

• FY2023* was a peak-cycle year for DE, so FY2024 is a down year, although still the second-best earnings year in the company's history, based on current guidance.

• FY1Q24 product sales (excluding revenue from DE’s finance unit) were $10.5B -24% YoY, but above the consensus figure of $10.3B.

• FY1Q24 GAAP EPS was $6.23, -5% YoY and below the consensus figure of $6.55.

• DE lowered guidance for FY2024 net income to $7.50-7.75 (from the prior range of $7.75-8.25B). Based on 281M diluted shares @1/31/24, DE’s FY2024 net-income guidance equates to FY2024 GAAP EPS of $26.70-27.20. At the midpoint of the range ($26.95), the FY2024 EPS guidance is -22% YoY relative to $34.63 in FY2023.

At the current share price (~$367 as I’m typing), the FY2024 EPS guidance equates to a FY2024 P/E ratio of 13.6x.


CC slides:
https://s22.q4cdn.com/253594569/files/doc_financials/2024/q1/DE-1Q24-Earnings-Call-Presentation.pdf

*DE’s fiscal years end on Oct 31; FY1Q24 spanned the period from 11/1/23 to 1/31/24.