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 reported first-quarter 2024 adjusted earnings per share (EPS) of 33 cents, down from 35 cents in the prior-year quarter. The figure, however, beat the Zacks Consensus Estimate of 26 cents.
In the first quarter, consolidated revenues declined nearly 10% from the year-ago level to $4.82 billion and beat the consensus mark of $4.64 billion. The company’s net sales from industrial activities came in at $4.13 billion, down 14% due to lower industry demand and dealer inventory management.
CNH Industrial N.V. Price, Consensus and EPS Surprise
In the first quarter, net sales in the Agriculture segment fell 14% year over year to $3.37 billion, due to lower industry volume and dealer inventory management. The metric also missed our estimate of $3.39 billion. The segment’s adjusted EBIT came in at $421 million, down 26.1% year over year due to lower volumes. The figure also missed our estimate of $465.9 million. The adjusted EBIT margin decreased to 12.5% from 14.5%.
The Construction segment’s sales declined 11% year over year to $758 million as a result of lower volume across all regions. However, the metric beat our estimate of $755.7 million. Adjusted EBIT came in at $51 million, up 15.9% year over year, driven by improved product costs and lower SG&A expenses. The figure also outpaced our estimate of $37.3 million. The adjusted EBIT margin increased to 6.7% from 5.2%.
The Financial Services segment’s revenues went up 25% to $685 million, surpassing our estimate of $491 million on improved volumes and yields across all regions. Net income from the segment rose to $118 million from $78 million reported in the year-ago quarter.
Financial Details
CNH Industrial had cash and cash equivalents of $3.24 billion as of Mar 31, 2024, down from $4.32 billion as of Dec 31, 2023.
The company’s debt totaled $27.78 billion as of Mar 31, 2024, up from $27.33 billion as of Dec 31, 2023.
The company’s net cash used by operating activities was $894 million compared with $701 million reported in the year-ago period.
Negative free cash flow from industrial activities was $1.21 billion in the quarter compared with negative free cash flow of $673 million in the first quarter of 2023.
Updated Guidance 2024
For full-year 2024, Agriculture sales are now expected to decrease 11-15% compared with the earlier projected decline of 8-12%. Adjusted EBIT margin for the Agriculture segment is now expected in the band of 13.5-14.5% compared with the previous estimate of 14-15%. For the Construction segment, sales are expected to decline 7-11% year over year. Adjusted EBIT margin for the Construction segment is projected in the range of 5-6%.
The company’s free cash flow from industrial activities is anticipated in the range of $1.1-$1.3 billion, down from the previous guidance of $1.2-$1.4 billion. Adjusted EPS is now expected between $1.45 and $1.55, down from the previous estimate of $1.50-$1.60.
The Zacks Consensus Estimate for REZI’s 2024 sales and earnings suggests year-over-year growth of 0.94% and 22.15%, respectively. The EPS estimates for 2024 and 2025 have moved up 26 cents and $1.05, respectively, in the past seven days.
The Zacks Consensus Estimate for NWPX’s 2024 sales and earnings suggests year-over-year growth of 3.18% and 17.7%, respectively. The EPS estimates for 2024 and 2025 have improved 15 cents and 6 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for VMI’s 2024 earnings suggests year-over-year growth of 5.34%. The EPS estimates for 2024 and 2025 have improved 88 cents and 66 cents, respectively, in the past seven days.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
CNH Industrial (CNHI) Q1 Earnings Beat Estimates, Decline Y/Y
CNH Industrial reported first-quarter 2024 adjusted earnings per share (EPS) of 33 cents, down from 35 cents in the prior-year quarter. The figure, however, beat the Zacks Consensus Estimate of 26 cents.
In the first quarter, consolidated revenues declined nearly 10% from the year-ago level to $4.82 billion and beat the consensus mark of $4.64 billion. The company’s net sales from industrial activities came in at $4.13 billion, down 14% due to lower industry demand and dealer inventory management.
CNH Industrial N.V. Price, Consensus and EPS Surprise
CNH Industrial N.V. price-consensus-eps-surprise-chart | CNH Industrial N.V. Quote
Segmental Performance
In the first quarter, net sales in the Agriculture segment fell 14% year over year to $3.37 billion, due to lower industry volume and dealer inventory management. The metric also missed our estimate of $3.39 billion. The segment’s adjusted EBIT came in at $421 million, down 26.1% year over year due to lower volumes. The figure also missed our estimate of $465.9 million. The adjusted EBIT margin decreased to 12.5% from 14.5%.
The Construction segment’s sales declined 11% year over year to $758 million as a result of lower volume across all regions. However, the metric beat our estimate of $755.7 million. Adjusted EBIT came in at $51 million, up 15.9% year over year, driven by improved product costs and lower SG&A expenses. The figure also outpaced our estimate of $37.3 million. The adjusted EBIT margin increased to 6.7% from 5.2%.
The Financial Services segment’s revenues went up 25% to $685 million, surpassing our estimate of $491 million on improved volumes and yields across all regions. Net income from the segment rose to $118 million from $78 million reported in the year-ago quarter.
Financial Details
CNH Industrial had cash and cash equivalents of $3.24 billion as of Mar 31, 2024, down from $4.32 billion as of Dec 31, 2023.
The company’s debt totaled $27.78 billion as of Mar 31, 2024, up from $27.33 billion as of Dec 31, 2023.
The company’s net cash used by operating activities was $894 million compared with $701 million reported in the year-ago period.
Negative free cash flow from industrial activities was $1.21 billion in the quarter compared with negative free cash flow of $673 million in the first quarter of 2023.
Updated Guidance 2024
For full-year 2024, Agriculture sales are now expected to decrease 11-15% compared with the earlier projected decline of 8-12%. Adjusted EBIT margin for the Agriculture segment is now expected in the band of 13.5-14.5% compared with the previous estimate of 14-15%. For the Construction segment, sales are expected to decline 7-11% year over year. Adjusted EBIT margin for the Construction segment is projected in the range of 5-6%.
The company’s free cash flow from industrial activities is anticipated in the range of $1.1-$1.3 billion, down from the previous guidance of $1.2-$1.4 billion. Adjusted EPS is now expected between $1.45 and $1.55, down from the previous estimate of $1.50-$1.60.
Zacks Rank & Key Picks
CNHI currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the Industrial Products sector are Resideo Technologies, Inc. (REZI - Free Report) , Northwest Pipe Company (NWPX - Free Report) and Valmont Industries, Inc. (VMI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for REZI’s 2024 sales and earnings suggests year-over-year growth of 0.94% and 22.15%, respectively. The EPS estimates for 2024 and 2025 have moved up 26 cents and $1.05, respectively, in the past seven days.
The Zacks Consensus Estimate for NWPX’s 2024 sales and earnings suggests year-over-year growth of 3.18% and 17.7%, respectively. The EPS estimates for 2024 and 2025 have improved 15 cents and 6 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for VMI’s 2024 earnings suggests year-over-year growth of 5.34%. The EPS estimates for 2024 and 2025 have improved 88 cents and 66 cents, respectively, in the past seven days.