We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CNH Industrial (CNHI) Q4 Earnings Top Estimates, Down Y/Y
Read MoreHide Full Article
CNH Industrial posted fourth-quarter 2021 adjusted earnings per share of 25 cents. The bottom line decreased from 30 cents in the prior-year quarter but surpassed the Zacks Consensus Estimate of 21 cents. Higher-than-anticipated revenues and EBIT across the Agricultural Equipment and the Construction Equipment segments resulted in this outperformance.
In the fourth quarter, consolidated revenues climbed around 7% from the year-ago level to $9,072 million and topped the consensus mark of $7,983.3 million. The company’s net sales for industrial activities came in at $8,552 million, up 6.4% year on year.
Segmental Performance
In the December quarter, net sales in the Agricultural Equipment segment jumped 21.2% year over year to $4,150 million due to a demand boost and favorable price realization. The metric also surpassed the Zacks Consensus Estimate of $3,083 million. The segment’s adjusted EBIT came in at $414 million, up $35 million year over year and topped the consensus mark of $308 million. The adjusted EBIT margin decreased to 10% from 11.1% amid an unfavorable mix and higher raw material and freight as well as increased selling, general & administrative (SG&A) and research & development (R&D) spend.
The Construction Equipment segment’s sales grew 12.2% year over year to $844 million in fourth-quarter 2021, led by favorable price realization, higher demand and lower destocking by dealers and distributors. Revenues from the unit also outpaced the Zacks Consensus Estimate of $564 million. Adjusted EBIT came in at $20 million, doubling from the prior-year figure and topping the consensus mark of $8 million, on the back of favorable volume and better price realization. The adjusted EBIT margin increased to 2.4% from 1.3% in the year-ago quarter. The performance was aided by positive price realization and favorable volume and mix.
Revenues in Commercial and Specialty vehicles slid down 1% year over year to $3,256 million in the fourth quarter, affected by unfavorable currency translation. The reported figure, however, topped the consensus mark of $3,043 million. Adjusted EBIT came down to $55 million from $110 million reported in the prior-year period and missed the consensus figure of $99 million. The adjusted EBIT margin decreased to 1.7% from 3.3% in the year-ago quarter. This performance primarily stemmed from higher raw material costs and higher freight, rework costs due to component shortages and R&D spending.
The Powertrain segment’s quarterly revenues came down to $945 million, contracting 21.5% year over year due to lower deliveries to external customers. The reported figure also lagged the consensus mark of $1,096 million. Adjusted EBIT from the segment declined to $23 million from $87 million amid high freight, commodity and raw material costs. The figure missed the consensus estimate of $82 million. The adjusted EBIT margin decreased to 2.4% from 9.1% in the year-ago quarter.
The Financial Services segment revenues went up to $533 million, increasing around 10% year over year. The reported figure also topped the consensus mark of $497 million. Net income from the segment jumped 86.6% to $112 million, primarily on lower risk costs and improved pricing on used-equipment sales.
Financial Details
CNH Industrial had cash and cash equivalents of $6,006 million as of Dec 31, 2021. The company’s debt totaled $23,745 million at the end of the fourth quarter of 2021, decreasing around 9% from the year-ago quarter. The firm had available liquidity of $12,149 million as of Dec 31, 2021, compared with $15,871 million at 2020-end.
CNH Industrial’s cash provided by operating activities was $2,190 million during the reported quarter, down from $2,766 in the previous-year quarter. Free cash flow from industrial activities came in at $1,842 million in the fourth quarter.
2022 Guidance
CNH Industrial expects net sales from industrial activities (including currency-translation effects) for 2022 to increase in the band of 10-14% year over year. It expects to generate more than $1 billion in free cash flow from industrial activities in 2022. R&D expenses and capex are projected at around $1.4 billion, rising from $1 billion in 2021.
Zacks Rank & Key Picks
Currently, CNH Industrial has a Zacks Rank #3 (Hold).
Goodyear has an expected earnings growth rate of 51.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1.1% upward over the past 60 days.
Goodyear’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GT pulled off a trailing four-quarter earnings surprise of 228.5%, on average. The stock has also rallied 54.9% over a year.
Tesla has an expected earnings growth rate of 35.21% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward over the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 6.8% over a year.
Genuine Parts has an expected earnings growth rate of 10.03% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward over the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of around 16%, on average. The stock has also rallied 23.6% over a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CNH Industrial (CNHI) Q4 Earnings Top Estimates, Down Y/Y
CNH Industrial posted fourth-quarter 2021 adjusted earnings per share of 25 cents. The bottom line decreased from 30 cents in the prior-year quarter but surpassed the Zacks Consensus Estimate of 21 cents. Higher-than-anticipated revenues and EBIT across the Agricultural Equipment and the Construction Equipment segments resulted in this outperformance.
In the fourth quarter, consolidated revenues climbed around 7% from the year-ago level to $9,072 million and topped the consensus mark of $7,983.3 million. The company’s net sales for industrial activities came in at $8,552 million, up 6.4% year on year.
Segmental Performance
In the December quarter, net sales in the Agricultural Equipment segment jumped 21.2% year over year to $4,150 million due to a demand boost and favorable price realization. The metric also surpassed the Zacks Consensus Estimate of $3,083 million. The segment’s adjusted EBIT came in at $414 million, up $35 million year over year and topped the consensus mark of $308 million. The adjusted EBIT margin decreased to 10% from 11.1% amid an unfavorable mix and higher raw material and freight as well as increased selling, general & administrative (SG&A) and research & development (R&D) spend.
The Construction Equipment segment’s sales grew 12.2% year over year to $844 million in fourth-quarter 2021, led by favorable price realization, higher demand and lower destocking by dealers and distributors. Revenues from the unit also outpaced the Zacks Consensus Estimate of $564 million. Adjusted EBIT came in at $20 million, doubling from the prior-year figure and topping the consensus mark of $8 million, on the back of favorable volume and better price realization. The adjusted EBIT margin increased to 2.4% from 1.3% in the year-ago quarter. The performance was aided by positive price realization and favorable volume and mix.
Revenues in Commercial and Specialty vehicles slid down 1% year over year to $3,256 million in the fourth quarter, affected by unfavorable currency translation. The reported figure, however, topped the consensus mark of $3,043 million. Adjusted EBIT came down to $55 million from $110 million reported in the prior-year period and missed the consensus figure of $99 million. The adjusted EBIT margin decreased to 1.7% from 3.3% in the year-ago quarter. This performance primarily stemmed from higher raw material costs and higher freight, rework costs due to component shortages and R&D spending.
The Powertrain segment’s quarterly revenues came down to $945 million, contracting 21.5% year over year due to lower deliveries to external customers. The reported figure also lagged the consensus mark of $1,096 million. Adjusted EBIT from the segment declined to $23 million from $87 million amid high freight, commodity and raw material costs. The figure missed the consensus estimate of $82 million. The adjusted EBIT margin decreased to 2.4% from 9.1% in the year-ago quarter.
The Financial Services segment revenues went up to $533 million, increasing around 10% year over year. The reported figure also topped the consensus mark of $497 million. Net income from the segment jumped 86.6% to $112 million, primarily on lower risk costs and improved pricing on used-equipment sales.
Financial Details
CNH Industrial had cash and cash equivalents of $6,006 million as of Dec 31, 2021. The company’s debt totaled $23,745 million at the end of the fourth quarter of 2021, decreasing around 9% from the year-ago quarter. The firm had available liquidity of $12,149 million as of Dec 31, 2021, compared with $15,871 million at 2020-end.
CNH Industrial’s cash provided by operating activities was $2,190 million during the reported quarter, down from $2,766 in the previous-year quarter. Free cash flow from industrial activities came in at $1,842 million in the fourth quarter.
2022 Guidance
CNH Industrial expects net sales from industrial activities (including currency-translation effects) for 2022 to increase in the band of 10-14% year over year. It expects to generate more than $1 billion in free cash flow from industrial activities in 2022. R&D expenses and capex are projected at around $1.4 billion, rising from $1 billion in 2021.
Zacks Rank & Key Picks
Currently, CNH Industrial has a Zacks Rank #3 (Hold).
Better-ranked players in the auto space include Goodyear Tire (GT - Free Report) and Tesla (TSLA - Free Report) , each sporting a Zacks Rank #1(Strong Buy) and Genuine Parts (GPC - Free Report) , carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Goodyear has an expected earnings growth rate of 51.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1.1% upward over the past 60 days.
Goodyear’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GT pulled off a trailing four-quarter earnings surprise of 228.5%, on average. The stock has also rallied 54.9% over a year.
Tesla has an expected earnings growth rate of 35.21% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward over the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 6.8% over a year.
Genuine Parts has an expected earnings growth rate of 10.03% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward over the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of around 16%, on average. The stock has also rallied 23.6% over a year.