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CNH Industrial N.V. (CNHI - Free Report) reported adjusted earnings per share of 31 cents in second-quarter 2019, which rose 11% from the year-ago quarter’s figure. Moreover, the bottom line surpassed the Zacks Consensus Estimate of 29 cents.
Reportedly, adjusted net income rose to $430 million from $397 million recorded in second-quarter 2018.
Consolidated revenues declined 5.9% from the year-ago quarter’s level to $7.57 billion. The figure missed the Zacks Consensus Estimate of $7.83 billion. The company’s net sales for Industrial Activities were $7.1 billion and adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $527 million.
Segmental Performances
Net sales in the Agricultural Equipment segment declined 7% year over year to $3.1 billion. Moreover, the segment’s adjusted EBIT was $341 million, down $55 million from the year-ago quarter’s tally.
Construction Equipment segment’s sales declined 5.3% year over year to $757 million. The adjusted EBIT was $25 million from $33 million recorded in the year-ago quarter.
Revenues in the Commercial and Specialty vehicles slumped 6.6% year over year to $2.7 billion. The segment’s adjusted EBIT was $100 million, up from $92 million recorded in the prior-year quarter.
The Powertrain segment’s revenues declined 7% year over year to $1.1 billion. The segment’s adjusted EBIT was $102 million compared with $108 million in the second quarter of 2018.
Revenues from the Financial Services segment declined 4.2% year over year to $519 million. Adjusted EBIT was $124 million, down $17 million from the prior-year quarter’s figure.
CNH Industrial N.V. Price, Consensus and EPS Surprise
CNH Industrial had cash and cash equivalents of $3.7 billion as of Jun 30, 2019 compared with $5 billion as of Dec 31, 2018. The company’s debt was $24.4 billion as of Jun 30 compared with $24 billion as of Dec 31, 2018.
At the end of the second quarter, CNH Industrial’s net cash outflow from operations was $503 million compared with cash inflow of $727 million in the prior-year quarter.
Outlook
The company reiterated its projection for 2019. For the current year, it projects roughly $27-$27.5 billion in Industrial Activities’ net sales and adjusted earnings per share are expected in the range of 84-88 cents. Net debt of Industrial Activities at the end of 2019 is expected between $200 million and $400 million.
Zacks Rank & Stocks to Consider
Currently, CNH Industrial has a Zacks Rank #5 (Strong Sell).
Copart has an expected long-term growth rate of 20%. In the past year, shares of the company have rallied 33.3%.
CarMax has an expected long-term growth rate of 12.6%. In the past year, shares of the company have moved up 17.9%.
Gentex has an expected long-term growth rate of 5%. In the past year, shares of the company have returned 18.7%.
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CNH Industrial's (CNHI) Q2 Earnings Beat Estimates, Rise Y/Y
CNH Industrial N.V. (CNHI - Free Report) reported adjusted earnings per share of 31 cents in second-quarter 2019, which rose 11% from the year-ago quarter’s figure. Moreover, the bottom line surpassed the Zacks Consensus Estimate of 29 cents.
Reportedly, adjusted net income rose to $430 million from $397 million recorded in second-quarter 2018.
Consolidated revenues declined 5.9% from the year-ago quarter’s level to $7.57 billion. The figure missed the Zacks Consensus Estimate of $7.83 billion. The company’s net sales for Industrial Activities were $7.1 billion and adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $527 million.
Segmental Performances
Net sales in the Agricultural Equipment segment declined 7% year over year to $3.1 billion. Moreover, the segment’s adjusted EBIT was $341 million, down $55 million from the year-ago quarter’s tally.
Construction Equipment segment’s sales declined 5.3% year over year to $757 million. The adjusted EBIT was $25 million from $33 million recorded in the year-ago quarter.
Revenues in the Commercial and Specialty vehicles slumped 6.6% year over year to $2.7 billion. The segment’s adjusted EBIT was $100 million, up from $92 million recorded in the prior-year quarter.
The Powertrain segment’s revenues declined 7% year over year to $1.1 billion. The segment’s adjusted EBIT was $102 million compared with $108 million in the second quarter of 2018.
Revenues from the Financial Services segment declined 4.2% year over year to $519 million. Adjusted EBIT was $124 million, down $17 million from the prior-year quarter’s figure.
CNH Industrial N.V. Price, Consensus and EPS Surprise
CNH Industrial N.V. price-consensus-eps-surprise-chart | CNH Industrial N.V. Quote
Financial Details
CNH Industrial had cash and cash equivalents of $3.7 billion as of Jun 30, 2019 compared with $5 billion as of Dec 31, 2018. The company’s debt was $24.4 billion as of Jun 30 compared with $24 billion as of Dec 31, 2018.
At the end of the second quarter, CNH Industrial’s net cash outflow from operations was $503 million compared with cash inflow of $727 million in the prior-year quarter.
Outlook
The company reiterated its projection for 2019. For the current year, it projects roughly $27-$27.5 billion in Industrial Activities’ net sales and adjusted earnings per share are expected in the range of 84-88 cents. Net debt of Industrial Activities at the end of 2019 is expected between $200 million and $400 million.
Zacks Rank & Stocks to Consider
Currently, CNH Industrial has a Zacks Rank #5 (Strong Sell).
Some top-ranked stocks in the auto space worth considering are Copart, Inc (CPRT - Free Report) , CarMax, Inc (KMX - Free Report) and Gentex Corporation (GNTX - Free Report) . While Copart sports a Zacks Rank #1 (Strong Buy), CarMax and Gentex carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copart has an expected long-term growth rate of 20%. In the past year, shares of the company have rallied 33.3%.
CarMax has an expected long-term growth rate of 12.6%. In the past year, shares of the company have moved up 17.9%.
Gentex has an expected long-term growth rate of 5%. In the past year, shares of the company have returned 18.7%.
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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