** charts before earnings **
** charts after earnings **
Deere beats by $0.61, misses on revs; guides Q4 revs in-line; raises FY16 net income guidance :
- Reports Q3 (Jul) earnings of $1.55 per share, $0.61 better than the Capital IQ Consensus of $0.94; net slaes of equipment operations fell 14.3% year/year to $5.86 bln vs the $6.03 bln Capital IQ Consensus.
- Sales included price realization of 2% for the quarter and year to date. Additionally, sales included an unfavorable FX effect of 2% for both the quarter and nine months. Equipment net sales in the United States and Canada decreased 16% for the quarter and 13% year to date. Outside the U.S. and Canada, net sales decreased 12% for the quarter and 7% for the first nine months, with unfavorable currency-translation effects of 4% and 6% for the respective periods.
- Operating profit improvement for the quarter was primarily driven by price realization, lower (+4% to $625 mln) production costs and a decrease in selling, administrative and general expenses, partially offset by reduced shipment volumes and the unfavorable effects of foreign-currency exchange.
- Co issues in-line guidance for Q4, sees Q4 revs of -8% to $5.46 bln vs. $5.44 bln Capital IQ Consensus Estimate.
- Co raises FY16 net income to $1.35 bln from $1.2 bln; lowers sales to down 10% from down 9%.
- "John Deere's performance in the third quarter reflected the continuing impact of the global farm recession as well as difficult conditions in construction equipment markets," said Samuel R. Allen, chairman and chief executive officer. "All of Deere's businesses remained profitable with the Agriculture & Turf division reporting higher operating profit than last year.
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