Deere beats by $0.16, misses on revs; guides Q3 revs just above consensus; reaffirms FY14 net income guidance, lowers FY14 rev guidance slightly below consensus (93.61)
Reports Q2 (Apr) earnings of $2.65 per share, $0.16 better than the Capital IQ Consensus Estimate of $2.49; revenues fell 9.9% year/year to $9.25 bln vs the $9.58 bln consensus.
Co issues guidance for FY14, reaffirms EPS of net income ~$3.3 bln; lowers FY14 revs to -4% to ~$33.60 bln (from -3%) vs. $33.79 bln Capital IQ Consensus.
"John Deere expects to achieve near-record earnings for the full year and the company is well-positioned to deliver solid financial results throughout the business cycle," Allen said. "We're confident our extensive investments in new products and markets, coupled with a tight rein on costs and assets, will keep the company on a sound financial footing and help sustain our growth plans." These plans are essential to meeting the world's growing need for food, shelter and infrastructure, he added, and they should lead to significant benefits for the company's investors and customers in the years ahead.
- Sales included price realization of 2% and an unfavorable currency-translation effect of 1% for the quarter and six months. Equipment net sales in the United States and Canada decreased 12% for the quarter and 6% year to date. Outside the U.S. and Canada, net sales were down 6% for the quarter and 3% for six months, including unfavorable currency-translation effects of 2% for both periods.
- Deere's equipment operations reported operating profit of $1.361 billion for the quarter and $2.252 billion for six months, compared with $1.663 billion and $2.500 billion last year. The decline for both periods was due primarily to the impact of lower shipment volumes, the unfavorable effects of foreign-currency exchange, and a less favorable product mix, partially offset by price realization.
Co issues guidance for FY14, reaffirms EPS of net income ~$3.3 bln; lowers FY14 revs to -4% to ~$33.60 bln (from -3%) vs. $33.79 bln Capital IQ Consensus.
"John Deere expects to achieve near-record earnings for the full year and the company is well-positioned to deliver solid financial results throughout the business cycle," Allen said. "We're confident our extensive investments in new products and markets, coupled with a tight rein on costs and assets, will keep the company on a sound financial footing and help sustain our growth plans." These plans are essential to meeting the world's growing need for food, shelter and infrastructure, he added, and they should lead to significant benefits for the company's investors and customers in the years ahead.