Deere & Co. (DE) Tops Q4 EPS Views; Sees FY16 Sales Down ~7%

Deere & Co. (NYSE: DE) reported Q4 EPS of $1.08, $0.33 better than the analyst estimate of $0.75. Revenue for the quarter came in at $5.93 billion versus the consensus estimate of $6.13 billion.

"John Deere has completed a successful year in the face of further weakness in the global agricultural sector and a slowdown in construction-equipment markets," said Samuel R. Allen, chairman and chief executive officer. "Sales and earnings for the year were the sixth-highest in company history, a notable achievement in light of the challenging market conditions we experienced. The company's performance benefited from the adept execution of our business plans and disciplined cost management. As a result, Deere remains well-positioned to serve its customers while continuing to make investments in quality and innovation that are designed to drive growth in the future."

2016 forecast calls for sales decline of about 7% and earnings of approximately $1.4 billion.

Company equipment sales are projected to decrease about 7 percent for fiscal 2016 and to be down about 11 percent for the first quarter compared with year-ago periods. Included in the forecast is a negative foreign-currency translation effect of about 2 percent for the full year and 4 percent for the first quarter. For fiscal 2016, net income attributable to Deere & Company is anticipated to be about $1.4 billion.

"Although our forecast calls for lower results in the year ahead, the outlook represents a level of performance that is considerably better than we have experienced in previous downturns," Allen said. "This shows the continuing success of our efforts to establish a more durable business model and a wider range of revenue sources."

Longer term, Allen reaffirmed his belief the future holds great promise for the company. "John Deere remains in a strong position to carry out its growth plans and attract new customers throughout the world," he said. "Thanks to the commitment of our employees, dealers and suppliers, our plans for helping meet the world's increasing need for food, shelter and infrastructure are continuing to move ahead. These trends in our view remain quite compelling and have ample staying power. All in all, we have confidence in the company's present direction and firmly believe it is on track to deliver significant value to our customers and investors in the years to come."

For earnings history and earnings-related data on Deere & Co. (DE) click here.

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