Stock Monitor: Columbus McKinnon Post Earnings Reporting
LONDON, UK / ACCESSWIRE / June 21, 2018 / If you want access to our free earnings report on Deere & Co. (DE) ("Deere"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=DE. The Company reported its financial results on May 18, 2018, for the second quarter of the fiscal year 2018 (Q2 FY18). The Moline, Illinois-based Company's revenues were in-line with market estimates for Q2 FY18. In addition, the Company provided its guidance for the third quarter fiscal 2018 and for the full fiscal year 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the second quarter ended April 29, 2018, Deere's total revenues advanced 29.4% to $10.72 billion compared to $8.29 billion in the second quarter of 2017. The Company's net sales of the equipment operations surged 34.3% to $9.75 billion in Q2 FY18 compared to $7.26 billion in Q2 FY17, which were in-line with analysts' expectations.
During Q2 FY18, Deere incurred total cost and expenses of $9.34 billion compared to $7.12 billion in Q2 FY17, increasing 31.2% on a y-o-y basis. The Company's selling, general, and administrative expenses (SG&A) rose 19.9% to $939.2 million in the reported quarter compared to $783.6 million in the prior year's same quarter.
For the reported quarter, Deere's net income jumped 49.5% to $1.21 billion versus $808.5 million in the prior year's comparable period. The Company reported a net income of its equipment operations of $1.10 billion in Q2 FY18 compared to $700.0 million in Q2 FY17. For the reported quarter, the Company's posted a net income of $104.1 million from its Financial Services division compared to $103.5 million in Q2 FY17.
Deere's diluted earnings per share (EPS) grew 46.8% to $3.67 in Q2 FY18 compared to $2.50 in Q2 FY17. The Company posted adjusted EPS of $3.14 in the reported quarter, which lagged analysts' estimates of $3.33.
Deere's operating segments consists of: (i) Agriculture and Turf; (ii) Construction and Forestry; and Financial Services.
Deere's Agriculture and Turf segment's revenues grew 22% to $7.05 billion in Q2 FY18 compared to $5.79 billion in Q2 FY17, primarily driven by higher shipment volumes and a positive currency-translation impact. The segment's operating profit climbed 5% to $1.06 billion in the reported quarter compared to $1.01 billion in the corresponding quarter of last year.
For the reported quarter, Deere's Construction and Forestry segment generated revenues of $2.70 billion, up 84% from $1.47 billion in the year ago same period, led by higher shipment volumes and a favorable impact of currency translations. The segment's operating profit zoomed 133% to $259.0 million in Q2 FY18 compared to $111.0 million in Q2 FY17.
Deere's Financial Services segment added revenues of $795.0 million in the reported quarter versus $716.0 million in the year ago comparable period, increasing 11% on a y-o-y basis. The segment's operating profit was up 13% to $179.0 million in Q2 FY18 compared to $158.0 million in Q2 FY17.
As of April 29, 2018, Deere's cash and cash equivalents stood at $4.20 billion compared to $4.53 billion as of April 30, 2017. The Company had a long-term debt balance of $26.28 billion as of April 29, 2018, compared to $23.25 billion as of April 30, 2017. For the six months ended April 29, 2018, the Company used net cash inflow for operating activities of $1.22 billion versus a usage of $163.7 million in the prior year's corresponding period.
Deere expects equipment sales to increase by 30% for the full fiscal year 2018, and by 35% for the third quarter of 2018, compared to the same periods in the year ago. Deere stated that Wirtgen will contribute 12% to total sales for FY18 and about 18% for Q3 FY18. The forecasts also included a positive foreign-currency translation impact of about 1% for Q3 FY18 and FY18.
For FY18, Deere anticipates net sales to grow by 26% on a y-o-y basis, and projects net income of about $2.3 billion.
Deere expects Agriculture and Turf equipment sales to increase by about 14% in FY18, including a positive currency-translation impact of 1%. The Company projects industry sales for agricultural equipment in the United States and Canada to be up by 10% for FY18, led by a higher demand for large equipment.
Deere anticipates sales of construction and forestry equipment to be up by 83% for FY18, including a positive currency-translation effect of about 1%. The Company expects Wirtgen to add about 56% to total sales for the segment.
For FY18, Deere projects net income from its Financial Services division to be $800 million, which includes about $229 million of favorable changes associated with the recent tax reform.
Stock Performance Snapshot
June 20, 2018 - At Wednesday's closing bell, Deere's stock rose 1.45%, ending the trading session at $144.35.
Volume traded for the day: 2.47 million shares.
Stock performance in the past twelve-month period - up 14.53%
After yesterday's close, Deere's market cap was at $47.16 billion.
Price to Earnings (P/E) ratio was at 17.93.
The stock has a dividend yield of 1.91%.
The stock is part of the Industrial Goods sector, categorized under the Farm & Construction Machinery industry. This sector was up 0.1% at the end of the session.
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