Deere (DE) Stumped in Q4; Key Segment Margins Compress, Modest Growth Expected
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Price: $86.97 -2.71%
EPS Growth %: +5.7%
Financial Fact:
Income of Consolidated Group: 657.1M
Today's EPS Names:
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EPS Growth %: +5.7%
Financial Fact:
Income of Consolidated Group: 657.1M
Today's EPS Names:
LBIX, ESEA, ISS, More
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Deere & Co. (NYSE: DE) is caught in the headlights today following fourth-quarter results issued earlier.
Sales for the company rose 14.5 percent to $9.05 billion, from $7.90 billion in the same period last year. Deere slightly improved its net income from $670 million up to $688 million, or $1.75 per share.
The Street was modeling revs of $8.85 billion and EPS of $1.88.
Operating margins moved from 14.6 percent down to 13.7 percent.
The Agriculture & Turf segment reported a strong 16 percent gain in sales, though operating profit rose just 7 percent. Conversely, Construction & Forestry revs rose just 7 percent while operating profit improved 38 percent.
Deere sees sales in the 27-member European Union flat to down five percent in its Agriculture & Turf unit. Total agricultural machinery sales are expected to be mostly flat as well.
Looking ahead, Deere sees sales rising 5 percent for fiscal 2013 and up 10 percent for its first quarter. Net income for FY13 is expected to be about $3.2 billion, up 4.4 percent from FY12 net income of $3.07 billion.
Shares of Deere are indicated for a lower open Wednesday.
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Sales for the company rose 14.5 percent to $9.05 billion, from $7.90 billion in the same period last year. Deere slightly improved its net income from $670 million up to $688 million, or $1.75 per share.
The Street was modeling revs of $8.85 billion and EPS of $1.88.
Operating margins moved from 14.6 percent down to 13.7 percent.
The Agriculture & Turf segment reported a strong 16 percent gain in sales, though operating profit rose just 7 percent. Conversely, Construction & Forestry revs rose just 7 percent while operating profit improved 38 percent.
Deere sees sales in the 27-member European Union flat to down five percent in its Agriculture & Turf unit. Total agricultural machinery sales are expected to be mostly flat as well.
Looking ahead, Deere sees sales rising 5 percent for fiscal 2013 and up 10 percent for its first quarter. Net income for FY13 is expected to be about $3.2 billion, up 4.4 percent from FY12 net income of $3.07 billion.
Shares of Deere are indicated for a lower open Wednesday.
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