Replies to post #22283 on The Rising Influence of Rising Affluence

[DewDiligence]

DE FY2Q20 items…

PR:
https://www.deere.com/assets/pdfs/common/our-company/news/deere-2q20-news-release.pdf

CC slides:
https://s22.q4cdn.com/253594569/files/doc_financials/2020/q2/2Q_2020_Earnings-Call-Presentation.pdf FY2Q20

FY2Q20 sales were -18% YoY in the ag segment (73% of equipment sales) and -25% YoY in the construction segment (27% of equipment sales), but these results were somewhat better than consensus estimates.

DE’s reinstated guidance for the full fiscal year (ending 10/31/20) is sharply down from the original guidance that was issued in Nov 2019 and then retracted due to COVID-19. Specifically, the new FY2020 guidance calls for $1.6-2.0B of net income (EPS of $5.05-6.31, based on 317M diluted shares), down from the $2.9B guidance given in Nov 2019 and the $3.2B net income actually achieved in FY2019.

The stock is +1% as I’m typing.

[DewDiligence]

Deere said it expects global equipment sales to fall 30% to 40% this year as the Covid-19 pandemic weighs on demand.

No—that guidance is for the construction segment specifically, which comprises 27% of total sales. DE’s FY2020 guidance for the much larger ag segment is a YoY sales reduction of 10-15%.