Deere (DE) reported earnings on Fri 18 August 17 (b/o)

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** charts after earnings **

 

Deere beats by $0.02, misses on revs; provides Q4 equip sales guidance including F/X

• Reports Q3 (Jul) earnings of $1.97 per share, $0.02 better than the Capital IQ Consensus of $1.95; revenues rose 16.6% year/year to $6.83 bln vs the $6.92 bln Capital IQ Consensus.
• Agriculture & Turf. Deere's worldwide sales of agriculture and turf equipment are forecast to increase by about 9 percent for fiscal-year 2017, including a positive currency-translation effect of about 1 percent. Industry sales for agricultural equipment in the U.S. and Canada are forecast to be down about 5 percent for 2017, reflecting weakness in the livestock sector and the continuing impact of low crop prices. The decline is affecting both large and small equipment.
• Co issuesguidancefor Q4, sees Q4 revs of equip sales +24% to ~$7.01 bln, may not be comparable to $6.58 bln Capital IQ Consensus Estimate.
• Guidance Details: Company equipment sales are projected to increase about 10 percent for fiscal 2017 and be up about 24 percent for the fourth quarter compared with the same periods of 2016. Included in the forecast is a positive foreign-currency translation effect of about 1 percent for the full year and about 2 percent in the fourth quarter. Net sales and revenues are projected to increase about 11 percent for fiscal 2017 with net income attributable to Deere & Company of about $2.075 billion.