Deere beats by $0.22, reports revs in-line; guides Q1 sales above consensus; guides FY14 net income above consensus, sales below consensus
Reports Q4 (Oct) earnings of $2.11 per share, $0.22 better than the Capital IQ Consensus Estimate of $1.89; total net sales fell 4.7% year/year to $8.62 bln vs the $8.68 bln consensus. The profit improvement for the quarter was due primarily to the impact of price realization [lower effective tax rate also helped EPS), partially offset by the unfavorable effects of FX, lower shipment volumes and a less favorable product mix.
Sales included price realization of 4% for the quarter and 3% for the year and an unfavorable currency-translation effect of 2% for the quarter and 1% for the year. Equipment net sales in the United States and Canada decreased 6% for the quarter and increased 5% for the year. Outside the U.S. and Canada, net sales decreased 2% for the quarter and increased 4% for the year, with unfavorable currency-translation effects of 4% and 3% for these periods.
Co issues upside guidance for Q1, sees Q1 equipment sales -2% to ~$6.66 bln vs. $6.53 bln Capital IQ Consensus.
Co issues guidance for FY14, sees FY14 net income ~$3.3 bln vs. the $3.08 bln consensus; sees equipment sales -3% to ~$33.95 bln vs. $34.29 bln Capital IQ Consensus. For fiscal 2014, net income attributable to Deere & Company is anticipated to be about $3.3 billion. The outlook contemplates the sale of 60% of John Deere Landscapes operations, as previously announced. Supported by record 2013 performance, John Deere remains in a prime position to carry out its wide-ranging growth plans and attract new customers throughout the world.