Replies to post #18739 on The Rising Influence of Rising Affluence

[DewDiligence]

DE/Addendum re trade/tariffs—Investors should be on the lookout for companies who excuse weak financial results by citing “trade tensions.”

DE itself is pretty honest, in my experience, but I can’t say the same for all export-oriented US multinationals. Moreover, there’s a direct line between China’s tariffs on US agriculture and the profitability of DE’s US farmer customers, so DE investors don’t need a deeper explanation for soft results and lowered guidance.

[DewDiligence]

DE +4% despite lowering 2019 profit guidance for the second time in three months. You can call today a “relief rally” insofar as DE’s shares have been hit pretty hard lately on trade/ag-industry tensions. (Ag-equipment comprises ~70% of DE’s product sales, and construction/forestry equipment comprises ~30%.)

DE’s FY2019 non-GAAP EPS guidance is now ~$10.00, down from $10.24 three months ago and $11.17 six months ago (#msg-148884335).

The commentary in #msg-148885017 still holds.

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FY3Q19 items…

PR:
https://www.deere.com/assets/pdfs/common/our-company/news/deere-3q19-news-release.pdf

CC slides:
https://s22.q4cdn.com/253594569/files/images/DE-3Q19-Earnings-Call-Slides-Cover-Page-1.png