The Rising Influence of Rising Affluence

[DewDiligence]

DE reports FY3Q24 results—reiterates_FY2024*_guidance:

https://s22.q4cdn.com/253594569/files/doc_financials/2024/q3/DE-3Q24-News-Release.pdf

• FY2023 was a peak-cycle year in the agriculture-equipment market (which comprises ~70% of DE’s profits), and hence FY2024 is a down year, although still the second-best earnings year in the company's history, based on current guidance.

• FY3Q24 product sales (excluding revenue from DE’s finance unit) were $11.39B, -20% YoY, but above the Wall Street consensus figure of $10.9B.

• FY3Q24 GAAP EPS was $6.29, down from $10.10 in FY3Q23, but above the Wall Street consensus figure of $5.68.

• DE reiterated full-year FY2024 guidance of $7.0B net income. Based on ~275M diluted shares, the FY2024 net-income guidance equates to FY2024 GAAP EPS of $25.45, down from the actual $34.63 in FY2023.

At the current share price (~$377, +7%, as I’m typing), the FY2024 EPS guidance of $25.18 equates to a FY2024 P/E ratio of ~15.0x.


CC slides:
https://s22.q4cdn.com/253594569/files/doc_financials/2024/q3/DE-3Q24-Earnings-Call-Presentation.pdf

*DE’s fiscal years end on Oct 31; FY3Q24 spanned the period from 5/1/24 to 7/31/24.