Deere beats by $0.10, misses on revs; guides Q2 revs just above consensus; lowers FY16 guidance (80.33)
- Reports Q1 (Jan) earnings of $0.80 per share, $0.10 better than the Capital IQ Consensus of $0.70; revenues fell 14.9% year/year to $4.77 bln vs the $4.86 bln Capital IQ Consensus. Sales included price realization of 2 percent and an unfavorable currency-translation effect of 4 percent. Equipment net sales in the United States and Canada decreased 18 percent. Outside the U.S. and Canada, net sales were down 9 percent, with unfavorable currency-translation effects of 11 percent.
- Deere's equipment operations reported operating profit of $214 million for the quarter, compared with $414 million in 2015. The decline for the quarter was due primarily to lower shipment volumes, the unfavorable effects of foreign-currency exchange and the impact of a less favorable product mix.
- Results decline on weakness in global markets for farm and construction equipment -- all businesses remain profitable.
- Co issues upside guidance for Q2, sees Q2 revs of -8% to ~$6.81 bln vs. $6.66 bln Capital IQ Consensus Estimate.
- Co issues downside guidance for FY16, lowers FY16 revs to -10% to ~$23.2 bln (from -7%) vs. $23.56 bln Capital IQ Consensus; lowers net income to $1.3 bln from $1.4 bln.
- Peers: CNHI, AGCO, TWI, CAT.