Deere's (DE) Earnings And Revenues Trump Estimates In Q4
Zacks Investment Research | Nov 26, 2019 10:07PM ET
Deere & Company (NYSE:DE) reported fourth-quarter fiscal 2019 (ended Nov 3, 2019) adjusted earnings of $2.14 per share, beating the Zacks Consensus Estimate of $2.13. However, the reported figure declined 7% from the prior-year quarter’s adjusted earnings per share of $2.30.
The quarterly results reflect lingering uncertainties in the agricultural sector. Prevalent trade tensions, along with poor growing and harvesting conditions, have resulted in farmer’s getting cautious about their equipment purchases. Nevertheless, upbeat economic conditions are contributing to Deere's construction and forestry business’ solid performance.
Including one-time items, the company reported earnings per share of $2.27 in the fiscal fourth quarter compared with the $2.42 recorded in the year-ago quarter.
Net sales of equipment operations (which comprise Agriculture and Turf, Construction and Forestry) came in at $8.70 billion, up 4% year over year. Revenues also surpassed the Zacks Consensus Estimate of $8.45 billion. Total net sales (including financial services and others) came in at around $9.90 billion, up 5% year over year.
Operational Update
Cost of sales in the reported quarter was up 5.5% year over year to $6.7 billion. Gross profit, excluding financial services, in the October-end quarter inched up 0.3% year over year, to $1.97 billion. Selling, administrative and general expenses flared up 5% year over year to $945 million. Equipment operations reported operating profit of $788 million in the quarter compared with the $862 million witnessed in the prior-year quarter. Total operating profit (including financial services) dipped to $916 million from the $1,063 million reported in the year-ago quarter.
Deere & Company Price, Consensus and EPS Surprise
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