CNH Industrial (CNHI - Free Report) posted third-quarter 2022 adjusted earnings per share of 41 cents, which increased from 36 cents in the prior-year quarter and topped the Zacks Consensus Estimate of 32 cents. Higher-than-anticipated revenues across the Agricultural and the Financial Services segments resulted in this outperformance.
In the third quarter, consolidated revenues rose 23.9% from the year-ago level to $5,881 million and topped the consensus mark of $5,327 million. The company’s net sales from industrial activities came in at $5,396 million, up 24.4%, led by favorable pricing.
Segmental Performance
In the September quarter, net sales in the Agricultural segment grew 26% year over year to $4,501 million due to a favorable price realization and improved mix, mainly driven by the North America and South America regions. The metric also topped the Zacks Consensus Estimate of $4,060 million. The segment’s adjusted EBIT came in at $666 million, jumping 60.4% year over year and topping the consensus mark of $529 million. The adjusted EBIT margin increased to 14.8% from 11.6%.
The Construction segment’s sales grew 16% year over year to $895 million in the quarter, led by price realization and contribution from the Sampierana business. But revenues beat the Zacks Consensus Estimate of $844 million. Adjusted EBIT came in at $24 million, gaining 14.3% on the back of favorable volume and a positive price realization. Nonetheless, the figure lagged the consensus mark of $35 million. The adjusted EBIT margin was the same as the prior-year level of 2.7%.
The Financial Services segment revenues went up 19% to $482 million and topped the consensus mark of $460 million on higher used equipment sales, improved volumes and better base rates across all regions, especially in South America. Net income from the segment declined 10.4% to $86 million in the quarter under review.
Financial Details
CNH Industrial had cash and cash equivalents of $3,154 million as of Sep 30, 2022, down from $5,044 million as of Dec 31, 2021. The company’s debt totaled $20,922 million at the end of the third quarter of 2022, up from $20,897 million as of Dec 31, 2021. The firm had available liquidity of $8,645 million as of Sep 30, 2022.
CNH Industrial’s net cash provided by operating activities was $272 million, down from $673 million in the year-ago period. Free cash flow from industrial activities was $202 million in the quarter versus negative FCF of $70 million in the third quarter of 2021.
CNH Industrial currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2022 Guidance
CNH Industrial revised its estimates for net sales from industrial activities (including currency-translation effects) for 2022. Sales are now expected to increase year over year in the band of 16-18% instead of 12-14% guided earlier. Its projections for free cash flow remain unchanged. The company continues to expect to generate more than $1 billion in free cash flow from industrial activities in 2022. R&D expenses and capex projections also remain the same at around $1.4 billion. SG&A expenses continue to be projected at lower than 7.5% of net sales.
Peer Releases
Lindsay Corporation (LNN - Free Report) : Lindsay reported fourth-quarter fiscal 2022 results on Oct 20. The company came out with quarterly earnings of $1.62 per share, missing the Zacks Consensus Estimate of $1.67 per share. This compares to earnings of 94 cents per share recorded in the year-ago period. LNN posted revenues of $190.2 million for the quarter ended August 2022, surpassing the Zacks Consensus Estimate by 3.35%. This compares to year-ago revenues of $153.65 million.
The Zacks Consensus Estimate for fiscal 2023 sales and earnings per share implies year-over-year growth of 3.8% and 9.3%, respectively. The company pulled off earnings beat in three out of four trailing quarters, and missed on the other, the average surprise being 21.5%.
AGCO Corp (AGCO - Free Report) : AGCO reported third-quarter 2022 results on Nov 1. The company came out with quarterly earnings of $3.18 per share, beating the Zacks Consensus Estimate of $3.12 per share. This compares to earnings of $2.41 per share recorded a year ago. It posted revenues of $3.12 billion for the quarter ended September 2022, missing the Zacks Consensus Estimate by 4.89%. This compares to the year-ago revenues of $2.73 billion.
The Zacks Consensus Estimate for AGCO’s 2022 sales and earnings per share implies year-over-year growth of 12.3% and 14.3%, respectively. The company pulled off an earnings beat in the trailing four quarters, the average surprise being 29.3%.
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CNH Industrial (CNHI - Free Report) posted third-quarter 2022 adjusted earnings per share of 41 cents, which increased from 36 cents in the prior-year quarter and topped the Zacks Consensus Estimate of 32 cents. Higher-than-anticipated revenues across the Agricultural and the Financial Services segments resulted in this outperformance.
In the third quarter, consolidated revenues rose 23.9% from the year-ago level to $5,881 million and topped the consensus mark of $5,327 million. The company’s net sales from industrial activities came in at $5,396 million, up 24.4%, led by favorable pricing.
Segmental Performance
In the September quarter, net sales in the Agricultural segment grew 26% year over year to $4,501 million due to a favorable price realization and improved mix, mainly driven by the North America and South America regions. The metric also topped the Zacks Consensus Estimate of $4,060 million. The segment’s adjusted EBIT came in at $666 million, jumping 60.4% year over year and topping the consensus mark of $529 million. The adjusted EBIT margin increased to 14.8% from 11.6%.
The Construction segment’s sales grew 16% year over year to $895 million in the quarter, led by price realization and contribution from the Sampierana business. But revenues beat the Zacks Consensus Estimate of $844 million. Adjusted EBIT came in at $24 million, gaining 14.3% on the back of favorable volume and a positive price realization. Nonetheless, the figure lagged the consensus mark of $35 million. The adjusted EBIT margin was the same as the prior-year level of 2.7%.
The Financial Services segment revenues went up 19% to $482 million and topped the consensus mark of $460 million on higher used equipment sales, improved volumes and better base rates across all regions, especially in South America. Net income from the segment declined 10.4% to $86 million in the quarter under review.
Financial Details
CNH Industrial had cash and cash equivalents of $3,154 million as of Sep 30, 2022, down from $5,044 million as of Dec 31, 2021. The company’s debt totaled $20,922 million at the end of the third quarter of 2022, up from $20,897 million as of Dec 31, 2021. The firm had available liquidity of $8,645 million as of Sep 30, 2022.
CNH Industrial’s net cash provided by operating activities was $272 million, down from $673 million in the year-ago period. Free cash flow from industrial activities was $202 million in the quarter versus negative FCF of $70 million in the third quarter of 2021.
CNH Industrial currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2022 Guidance
CNH Industrial revised its estimates for net sales from industrial activities (including currency-translation effects) for 2022. Sales are now expected to increase year over year in the band of 16-18% instead of 12-14% guided earlier. Its projections for free cash flow remain unchanged. The company continues to expect to generate more than $1 billion in free cash flow from industrial activities in 2022. R&D expenses and capex projections also remain the same at around $1.4 billion. SG&A expenses continue to be projected at lower than 7.5% of net sales.
Peer Releases
Lindsay Corporation (LNN - Free Report) : Lindsay reported fourth-quarter fiscal 2022 results on Oct 20. The company came out with quarterly earnings of $1.62 per share, missing the Zacks Consensus Estimate of $1.67 per share. This compares to earnings of 94 cents per share recorded in the year-ago period. LNN posted revenues of $190.2 million for the quarter ended August 2022, surpassing the Zacks Consensus Estimate by 3.35%. This compares to year-ago revenues of $153.65 million.
The Zacks Consensus Estimate for fiscal 2023 sales and earnings per share implies year-over-year growth of 3.8% and 9.3%, respectively. The company pulled off earnings beat in three out of four trailing quarters, and missed on the other, the average surprise being 21.5%.
AGCO Corp (AGCO - Free Report) : AGCO reported third-quarter 2022 results on Nov 1. The company came out with quarterly earnings of $3.18 per share, beating the Zacks Consensus Estimate of $3.12 per share. This compares to earnings of $2.41 per share recorded a year ago. It posted revenues of $3.12 billion for the quarter ended September 2022, missing the Zacks Consensus Estimate by 4.89%. This compares to the year-ago revenues of $2.73 billion.
The Zacks Consensus Estimate for AGCO’s 2022 sales and earnings per share implies year-over-year growth of 12.3% and 14.3%, respectively. The company pulled off an earnings beat in the trailing four quarters, the average surprise being 29.3%.
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Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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