Replies to post #25330 on The Rising Influence of Rising Affluence

[DewDiligence]

DE +4% on (frivolous, IMO) Barron’s plug:

https://www.barrons.com/articles/6-safe-stocks-usa-51645840741

[DewDiligence]

DE sets all-time intraday and closing highs (eom).

[DewDiligence]

BofA analyst lowers DE price target $475—>$450 (LOL):

https://www.barrons.com/articles/deere-stock-downgraded-fertilizer-supplies-51650893988

[DewDiligence]

DE raises FY2022* EPS guidance again…

FY2Q22 PR:
https://s22.q4cdn.com/253594569/files/doc_financials/2022/q2/DE-2Q22-News-Release-and-Financials.pdf

CC slides:
https://s22.q4cdn.com/253594569/files/doc_financials/2022/q2/DE-2Q22-Earnings-Call-Presentation.pdf


New FY2022 GAAP EPS guidance is $22.73-24.03 (based on 308M diluted shares), up from the prior guidance of $21.30-22.60 three months ago and up further from the prior guidance $20.70-22.30 six months ago.

DE’s FY2022 GAAP guidance includes a $220M ($0.71/sh) non-recurring gain in FY2Q22; without the non-recurring item, FY2022 EPS guidance would be $22.02-23.32. At the current share price (~$337), the above EPS range represents a FY2022 P/E ratio of 14.5-15.3.

Despite all of the above, the stock is down ~7% as I’m typing. Some investors may think that FY022 represents the top of the cycle and that things can’t get any better.

*DE’s fiscal year ends on Oct 31.