CNH Industrial N.V. (CNHI - Free Report) reported adjusted earnings per share of 16 cents in third-quarter 2018, increasing from 4 cents in the prior-year quarter. Moreover, the bottom line surpassed the Zacks Consensus Estimate of 13 cents.
Reportedly, adjusted net income rose to $222 million from $151 million recorded in third-quarter 2017.
Consolidated revenues were almost flat year over year to $6.69 billion. However, the figure missed the Zacks Consensus Estimate of $6.9 billion. The company’s net sales in Industrial Activities were $6.2 billion while adjusted EBITDA (earnings before interest, tax, depreciation and amortization) of Industrial Activities increased 13% to $591 million.
CNH Industrial N.V. Price, Consensus and EPS Surprise
Segmental Performances
Net revenues from the Agricultural Equipment segment rose 3.5% year over year to $2.6 billion. The rise was due to positive price across all regions and higher sales in NAFTA. Moreover, the segment’s adjusted EBIT was $196 million, marking a $23 million increase compared with the third quarter of 2017.
Construction Equipment segment’s revenues increased 17.5% to $726 million compared with the prior-year quarter. The gain was primarily due to favorable demand, majorly in NAFTA and APAC. Adjusted EBIT was $26 million, marking a $24 million gain compared with the prior-year quarter.
Revenues from the Commercial Vehicles slumped 6.6% to $2.4 billion compared with the prior-year quarter. Waning demand, primarily for heavy vehicle trucks in EMEA, led to this decline. The segment’s adjusted EBIT was $68 million, witnessing an increase of $25 million from third-quarter 2017.
Powertrain segment’s revenues declined 9.5% year over year to $972 million. The segment’s adjusted EBIT was $82 million, marking a $6 million decline compared with the second quarter of 2017.
Revenues from the Financial Services segment declined 1.9% year over year to $469 million. This decline was majorly due to a lower average portfolio balance in NAFTA. Adjusted EBIT was $123 million, a decline of $3 million from the prior-year quarter.
Financial Details
CNH Industrial had cash and cash equivalents of $4.1 billion as of Sep 30, 2018, compared with $5.4 billion as of Dec 31, 2017. The company’s debt was $24 billion as of Sep 30, 2018, recording a decline from $25.9 billion as of Dec 31, 2017.
In third-quarter 2018, CNH Industrial’s net cash outflow from operations was $620 million compared with an outflow of $152 million a year ago.
Outlook
For 2018, the company reaffirmed its net sales anticipation of Industrial Activities to be approximately $28 billion. Adjusted earnings per share are expected to be 67-71 cents. Also, net industrial debt is anticipated between $0.7 billion and 0.9 billion.
Zacks Rank & Key Picks
CNH Industrial currently carries a Zacks Rank #5 (Strong Sell). A few better-ranked stocks in the auto space are AutoZone, Inc. (AZO - Free Report) , General Motors Company (GM - Free Report) and Tesla, Inc. (TSLA - Free Report) . AutoZone and General Motors currently carry a Zacks Rank #2 (Buy) while Tesla sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AutoZone has an expected long-term growth rate of 12.2%. Over the past month, shares of the company have gained 1%.
General Motors has an expected long-term growth rate of 8.5%. Shares of the company have increased 13% over the past month.
Tesla has an expected long-term growth rate of 10%. Shares of the company have rallied 32.5% over the past month.
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CNH Industrial N.V. (CNHI - Free Report) reported adjusted earnings per share of 16 cents in third-quarter 2018, increasing from 4 cents in the prior-year quarter. Moreover, the bottom line surpassed the Zacks Consensus Estimate of 13 cents.
Reportedly, adjusted net income rose to $222 million from $151 million recorded in third-quarter 2017.
Consolidated revenues were almost flat year over year to $6.69 billion. However, the figure missed the Zacks Consensus Estimate of $6.9 billion. The company’s net sales in Industrial Activities were $6.2 billion while adjusted EBITDA (earnings before interest, tax, depreciation and amortization) of Industrial Activities increased 13% to $591 million.
CNH Industrial N.V. Price, Consensus and EPS Surprise
Segmental Performances
Net revenues from the Agricultural Equipment segment rose 3.5% year over year to $2.6 billion. The rise was due to positive price across all regions and higher sales in NAFTA. Moreover, the segment’s adjusted EBIT was $196 million, marking a $23 million increase compared with the third quarter of 2017.
Construction Equipment segment’s revenues increased 17.5% to $726 million compared with the prior-year quarter. The gain was primarily due to favorable demand, majorly in NAFTA and APAC. Adjusted EBIT was $26 million, marking a $24 million gain compared with the prior-year quarter.
Revenues from the Commercial Vehicles slumped 6.6% to $2.4 billion compared with the prior-year quarter. Waning demand, primarily for heavy vehicle trucks in EMEA, led to this decline. The segment’s adjusted EBIT was $68 million, witnessing an increase of $25 million from third-quarter 2017.
Powertrain segment’s revenues declined 9.5% year over year to $972 million. The segment’s adjusted EBIT was $82 million, marking a $6 million decline compared with the second quarter of 2017.
Revenues from the Financial Services segment declined 1.9% year over year to $469 million. This decline was majorly due to a lower average portfolio balance in NAFTA. Adjusted EBIT was $123 million, a decline of $3 million from the prior-year quarter.
Financial Details
CNH Industrial had cash and cash equivalents of $4.1 billion as of Sep 30, 2018, compared with $5.4 billion as of Dec 31, 2017. The company’s debt was $24 billion as of Sep 30, 2018, recording a decline from $25.9 billion as of Dec 31, 2017.
In third-quarter 2018, CNH Industrial’s net cash outflow from operations was $620 million compared with an outflow of $152 million a year ago.
Outlook
For 2018, the company reaffirmed its net sales anticipation of Industrial Activities to be approximately $28 billion. Adjusted earnings per share are expected to be 67-71 cents. Also, net industrial debt is anticipated between $0.7 billion and 0.9 billion.
Zacks Rank & Key Picks
CNH Industrial currently carries a Zacks Rank #5 (Strong Sell). A few better-ranked stocks in the auto space are AutoZone, Inc. (AZO - Free Report) , General Motors Company (GM - Free Report) and Tesla, Inc. (TSLA - Free Report) . AutoZone and General Motors currently carry a Zacks Rank #2 (Buy) while Tesla sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AutoZone has an expected long-term growth rate of 12.2%. Over the past month, shares of the company have gained 1%.
General Motors has an expected long-term growth rate of 8.5%. Shares of the company have increased 13% over the past month.
Tesla has an expected long-term growth rate of 10%. Shares of the company have rallied 32.5% over the past month.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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