Replies to post #443 on Deere and Co (DE)

[DewDiligence]

FY2023 was a peak-cycle year for DE, so FY2024 is a down year, although still the second-best earnings year in the company's history, based on current guidance.

[DewDiligence]

DE FY1Q24 CC slides:

https://s22.q4cdn.com/253594569/files/doc_financials/2024/q1/DE-1Q24-Earnings-Call-Presentation.pdf

[DewDiligence]

At the current share price (~$367 as I’m typing), the DE's FY2024 EPS guidance equates to a FY2024 P/E ratio of 13.6x.

[DewDiligence]

DE FY1Q24 CC transcript:

https://finance.yahoo.com/news/q1-2024-deere-co-earnings-075048457.html

[DewDiligence]

DE reports FY2Q24* results—reduces FY2024* guidance again:

https://s22.q4cdn.com/253594569/files/doc_financials/2024/q2/DE-2Q24-News-Release.pdf

• FY2023* was a peak-cycle year for DE, so FY2024 is a down year, although still the second-best earnings year in the company's history, based on current guidance.

• FY2Q24 product sales (excluding revenue from DE’s finance unit) were $13.6B, -16% YoY, but above the Wall Street consensus figure of $1326B.

• FY1Q24 GAAP EPS was $8.53, -12% YoY, but above the Wall Street consensus figure of $7.86.

• DE lowered guidance for FY2024 net income to $7.0B (from the prior range of $7.50-7.75B three months ago and $7.75-8.25B six months ago). Based on 278M diluted shares @4/30/24, DE’s FY2024 net-income guidance equates to FY2024 GAAP EPS of $25.18, -27% relative to the actual $34.63 in FY2023.

*DE’s fiscal years end on Oct 31; FY2Q24 spanned the period from 2/1/24 to 4/30/24.

[DewDiligence]

Addendum—DE is +1,300% during the past 15 years, not counting reinvested dividends.