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CNH Industrial Q4 Earnings Miss Expectations, Revenues Fall Y/Y
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CNH Industrial (CNH - Free Report) reported fourth-quarter 2024 adjusted earnings per share (EPS) of 15 cents, which declined from 42 cents in the prior-year quarter. The figure also missed the Zacks Consensus Estimate of 19 cents.
In the fourth quarter, consolidated revenues declined nearly 28% from the year-ago level to $4.88 billion and missed the consensus mark of $4.89 billion. The company’s net sales from industrial activities came in at $4.13 billion, down 31% due to lower shipment volumes.
In the fourth quarter, net sales in the Agriculture segment fell 31% year over year to $3.41 billion due to lower shipment volume. The metric also missed our estimate of $3.43 billion. The segment’s adjusted EBIT came in at $244 million, down 62% year over year due to lower volumes. The figure also missed our estimate of $307.2 million. The adjusted EBIT margin decreased to 7.2% from 12.8%.
The Construction segment’s sales declined 33% year over year to $718 million as a result of lower volume across all regions. The metric also missed our estimate of $756 million. Adjusted EBIT came in at $18 million, down 71% year over year due to lower volume and unfavorable net price realization. The figure marginally missed our estimate of $18.3 million. The adjusted EBIT margin decreased to 2.5% from 5.8%.
The Financial Services segment’s revenues fell 3% to $743 million due to lower equipment sales and the unfavorable impact of currency translation. However, the metric surpassed our estimate of $648.8 million. Net income from the segment fell to $92 million from $113 million reported in the year-ago quarter.
Financial Details
CNH Industrial had cash and cash equivalents of $3.19 billion as of Dec. 31, 2024, down from $4.32 billion as of Dec. 31, 2023.
The company’s debt totaled $26.88 billion as of Dec. 31, 2024, down from $27.33 billion as of Dec. 31, 2023.
The company’s net cash provided by operating activities was $1.69 billion compared with $1.51 billion reported in the year-ago period.
CNH reported a free cash flow from industrial activities of $848 million in the quarter compared with a free cash flow of $1.63 billion in the fourth quarter of 2023.
CNH Provides Guidance for 2025
In 2025, Agriculture sales are expected to decrease 13-18% compared with a 23% decline in 2024. Adjusted EBIT margin for the Agriculture segment is expected in the band of 8.5-9.5% compared with 10.5% in 2024. For the Construction segment, sales are expected to decrease 5-10% year over year compared with a decline of 22% in 2024.
The company expects free cash flow from industrial activities in the range of $200-$500 million against the free cash outflow of $401 million in 2024. Adjusted EPS is expected between 65 cents and 75 cents compared with 99 cents in 2024.
The Zacks Consensus Estimate for RBC’s 2025 sales and earnings suggests year-over-year growth of 5.05% and 13.23%, respectively. EPS estimates for 2025 have improved 6 cents in the past seven days.
The Zacks Consensus Estimate for MWA’s 2025 sales and earnings suggests year-over-year growth of 3.46% and 21.88, respectively. EPS estimates for 2025 have improved 9 cents in the past 90 days.
The Zacks Consensus Estimate for ENS’ 2025 sales and earnings suggests year-over-year growth of 3.25% and 17.13, respectively. EPS estimates for 2025 and 2026 have improved 45 cents and 15 cents, respectively, in the past 30 days.
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CNH Industrial Q4 Earnings Miss Expectations, Revenues Fall Y/Y
CNH Industrial (CNH - Free Report) reported fourth-quarter 2024 adjusted earnings per share (EPS) of 15 cents, which declined from 42 cents in the prior-year quarter. The figure also missed the Zacks Consensus Estimate of 19 cents.
In the fourth quarter, consolidated revenues declined nearly 28% from the year-ago level to $4.88 billion and missed the consensus mark of $4.89 billion. The company’s net sales from industrial activities came in at $4.13 billion, down 31% due to lower shipment volumes.
See the Zacks Earnings Calendar to stay ahead of market-making news.
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 fourth quarter, net sales in the Agriculture segment fell 31% year over year to $3.41 billion due to lower shipment volume. The metric also missed our estimate of $3.43 billion. The segment’s adjusted EBIT came in at $244 million, down 62% year over year due to lower volumes. The figure also missed our estimate of $307.2 million. The adjusted EBIT margin decreased to 7.2% from 12.8%.
The Construction segment’s sales declined 33% year over year to $718 million as a result of lower volume across all regions. The metric also missed our estimate of $756 million. Adjusted EBIT came in at $18 million, down 71% year over year due to lower volume and unfavorable net price realization. The figure marginally missed our estimate of $18.3 million. The adjusted EBIT margin decreased to 2.5% from 5.8%.
The Financial Services segment’s revenues fell 3% to $743 million due to lower equipment sales and the unfavorable impact of currency translation. However, the metric surpassed our estimate of $648.8 million. Net income from the segment fell to $92 million from $113 million reported in the year-ago quarter.
Financial Details
CNH Industrial had cash and cash equivalents of $3.19 billion as of Dec. 31, 2024, down from $4.32 billion as of Dec. 31, 2023.
The company’s debt totaled $26.88 billion as of Dec. 31, 2024, down from $27.33 billion as of Dec. 31, 2023.
The company’s net cash provided by operating activities was $1.69 billion compared with $1.51 billion reported in the year-ago period.
CNH reported a free cash flow from industrial activities of $848 million in the quarter compared with a free cash flow of $1.63 billion in the fourth quarter of 2023.
CNH Provides Guidance for 2025
In 2025, Agriculture sales are expected to decrease 13-18% compared with a 23% decline in 2024. Adjusted EBIT margin for the Agriculture segment is expected in the band of 8.5-9.5% compared with 10.5% in 2024. For the Construction segment, sales are expected to decrease 5-10% year over year compared with a decline of 22% in 2024.
The company expects free cash flow from industrial activities in the range of $200-$500 million against the free cash outflow of $401 million in 2024. Adjusted EPS is expected between 65 cents and 75 cents compared with 99 cents in 2024.
Zacks Rank & Key Picks
CNH carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the Industrial Products sector are RBC Bearings Incorporated (RBC - Free Report) , Mueller Water Products, Inc. (MWA - Free Report) and EnerSys (ENS - 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 RBC’s 2025 sales and earnings suggests year-over-year growth of 5.05% and 13.23%, respectively. EPS estimates for 2025 have improved 6 cents in the past seven days.
The Zacks Consensus Estimate for MWA’s 2025 sales and earnings suggests year-over-year growth of 3.46% and 21.88, respectively. EPS estimates for 2025 have improved 9 cents in the past 90 days.
The Zacks Consensus Estimate for ENS’ 2025 sales and earnings suggests year-over-year growth of 3.25% and 17.13, respectively. EPS estimates for 2025 and 2026 have improved 45 cents and 15 cents, respectively, in the past 30 days.