The Rising Influence of Rising Affluence

[DewDiligence]

DE’s outlook for FY2014 (ending 10/31/14)

Revenue: -3% YoY as reported; flat YoY on an organic basis (i.e. excluding the partial divestiture of the landscaping business [#msg-93456219]).

GAAP EPS: $8.64, -5% YoY (assuming 380M diluted shares).

Comments: The USDA has been predicting for some time that US gross farm income would peak in 2013 and be down slightly in 2014. Under the circumstances, investors consider it bullish that DE's forecasts for FY2014 are as strong as they are. Based on the guidance for $8.64 of FY2014 GAAP EPS, the current share price represents a P/E of <10x.