Deere beats by $1.32, beats on revs; provides FY20 guidance (191.10)
- Reports Q3 (Jul) earnings of $2.57 per share, excluding non-recurring items, $1.32 better than the S&P Capital IQ Consensus of $1.25; revenues (equipment operations) fell 12.4% year/year to $7.86 bln vs the $6.7 bln S&P Capital IQ Consensus.
- Agriculture & Turf sales decreased for the quarter due to lower shipment volumes and the unfavorable effects of currency translation, partially offset by price realization. Operating profit increased primarily due to price realization, and lower selling, administrative, and general expenses.
- Net income attributable to Deere & Company is forecast to be about $2.25 bln for the full year. However, many uncertainties remain regarding the effects of the global pandemic that could negatively affect the company's results and financial position in the future. In addition, the company has announced broad employee-separation programs that will be completed during the fourth quarter in support of its strategy to create a leaner, more agile organization. The programs' total pretax expense included in the forecast is about $175 mln with estimated annual savings of $175 mln.