Replies to post #27329 on The Rising Influence of Rising Affluence

[DewDiligence]

(DE)—WSJ non sequitur:

https://www.wsj.com/articles/deere-de-q1-earnings-report-2023-18226f1d

The manufacturer, based in Moline, Ill., said higher prices accounted for about two-thirds of the $1.2 billion in profit from its large-farm-equipment business during the three months ended Jan. 29.

Huh? That is most definitely not what DE said, LOL. The WSJ needs a better proofreader.

[DewDiligence]

DE reports FY2Q23* results—raises fiscal-year guidance again:

https://s22.q4cdn.com/253594569/files/doc_financials/2023/q2/DE-2Q23-News-Release-and-Financials.pdf

FQ2Q23 was another superb quarter with volume and pricing gains in all three operating segments. Price increases more than offset increased production costs, and DE expects this to be true during all of FY2023.

• FY2Q23 product sales (excluding revenue from DE’s finance unit) were $16.1B, +34% YoY.

• FY2Q23 GAAP EPS was $9.65, +42% YoY.

DE again raised FY2023 net-income guidance to a range of $9.25-9.50B (up from $8.75-9.25B three months ago and $8.0-8.5B six months ago).

Based on 297M diluted shares @4/30/23, DE’s FY2023 net-income guidance equates to FY2023 GAAP EPS of $31.10-32.00, +34-37%(!) relative to $23.28 in FY2022, and +64-69%(!!) relative to $18.99 in FY2021.

At the current share price ($385.50 as I’m typing), the FY2023 EPS guidance equates to a FY2023 P/E ratio of 12.


CC slides:
https://s22.q4cdn.com/253594569/files/doc_financials/2023/q2/DE-2Q23-Earnings-Call-Presentation.pdf

*DE’s fiscal years end on Oct 31; FY2Q23 spanned the period from 2/1/23 to 4/30/23.