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CNH Industrial (CNHI) Earnings Beat Estimates in Q1, Rise Y/Y
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CNH Industrial N.V. (CNHI - Free Report) reported adjusted earnings per share of 18 cents in first-quarter 2019, which rose 29% from the year-ago quarter. Moreover, the bottom line surpassed the Zacks Consensus Estimate of 15 cents.
Reportedly, adjusted net income rose to $248 million from $204 million recorded in first-quarter 2018.
Consolidated revenues declined 4.7% from the year-ago quarter to $6.46 billion. The figure missed the Zacks Consensus Estimate of $6.62 billion. The company’s net sales for Industrial Activities were $6 billion while adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $525 million.
CNH Industrial N.V. Price, Consensus and EPS Surprise
Net sales from the Agricultural Equipment segment declined 4% year over year to $2.5 billion. Moreover, the segment’s adjusted EBIT was $168 million, marking an $18-million decrease from the first quarter of 2018.
Construction Equipment segment’s sales declined 6.2% from the prior-year quarter to $640 million. The adjusted EBIT was $13 million.
Revenues from Commercial and Specialty vehicles slumped 3.2% from the prior-year quarter to $2.4 billion. The segment’s adjusted EBIT was $51 million, a slight increase from $49 million recorded in the prior-year quarter.
The Powertrain segment’s revenues declined 12.6% year over year to $1 billion. The segment’s adjusted EBIT was $96 million compared with $95 million in the first quarter of 2018.
Revenues from the Financial Services segment declined 5.6% year over year to $474 million. Adjusted EBIT was $131 million, marking a decline of $12 million from the prior-year quarter.
Financial Details
CNH Industrial had cash and cash equivalents of $3.7 billion as of Mar 31, 2019, compared with $5 billion as of Dec 31, 2018. The company’s debt was $23.8 billion as of Mar 31, 2019, compared with $24 billion as of Dec 31, 2018.
At the end of the first quarter of 2019, CNH Industrial’s net cash outflow from operations was $751 million compared with $74 million recorded a year ago.
Outlook
The company reiterated the projection for 2019. For the current year, it projects roughly $28 billion in Industrial Activities’ net sales and adjusted earnings per share are expected to be 84-88 cents.
Gentex has an expected long-term growth rate of 6%. The stock has gained 18.1% in the past three months.
Oshkosh has an expected long-term growth rate of 11.6%. The stock has gained 3.3% in the past three months.
Ford has an expected long-term growth rate of 8.1%. Over the past three months, shares of the company have gained 23.7%.
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CNH Industrial (CNHI) Earnings Beat Estimates in Q1, Rise Y/Y
CNH Industrial N.V. (CNHI - Free Report) reported adjusted earnings per share of 18 cents in first-quarter 2019, which rose 29% from the year-ago quarter. Moreover, the bottom line surpassed the Zacks Consensus Estimate of 15 cents.
Reportedly, adjusted net income rose to $248 million from $204 million recorded in first-quarter 2018.
Consolidated revenues declined 4.7% from the year-ago quarter to $6.46 billion. The figure missed the Zacks Consensus Estimate of $6.62 billion. The company’s net sales for Industrial Activities were $6 billion while adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $525 million.
CNH Industrial N.V. Price, Consensus and EPS Surprise
CNH Industrial N.V. Price, Consensus and EPS Surprise | CNH Industrial N.V. Quote
Segmental Performances
Net sales from the Agricultural Equipment segment declined 4% year over year to $2.5 billion. Moreover, the segment’s adjusted EBIT was $168 million, marking an $18-million decrease from the first quarter of 2018.
Construction Equipment segment’s sales declined 6.2% from the prior-year quarter to $640 million. The adjusted EBIT was $13 million.
Revenues from Commercial and Specialty vehicles slumped 3.2% from the prior-year quarter to $2.4 billion. The segment’s adjusted EBIT was $51 million, a slight increase from $49 million recorded in the prior-year quarter.
The Powertrain segment’s revenues declined 12.6% year over year to $1 billion. The segment’s adjusted EBIT was $96 million compared with $95 million in the first quarter of 2018.
Revenues from the Financial Services segment declined 5.6% year over year to $474 million. Adjusted EBIT was $131 million, marking a decline of $12 million from the prior-year quarter.
Financial Details
CNH Industrial had cash and cash equivalents of $3.7 billion as of Mar 31, 2019, compared with $5 billion as of Dec 31, 2018. The company’s debt was $23.8 billion as of Mar 31, 2019, compared with $24 billion as of Dec 31, 2018.
At the end of the first quarter of 2019, CNH Industrial’s net cash outflow from operations was $751 million compared with $74 million recorded a year ago.
Outlook
The company reiterated the projection for 2019. For the current year, it projects roughly $28 billion in Industrial Activities’ net sales and adjusted earnings per share are expected to be 84-88 cents.
Zacks Rank & Stocks to Consider
CNH Industrial currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader auto sector are Gentex Corporation (GNTX - Free Report) , Oshkosh Corporation (OSK - Free Report) and Ford Motor Company (F - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Gentex has an expected long-term growth rate of 6%. The stock has gained 18.1% in the past three months.
Oshkosh has an expected long-term growth rate of 11.6%. The stock has gained 3.3% in the past three months.
Ford has an expected long-term growth rate of 8.1%. Over the past three months, shares of the company have gained 23.7%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
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