CNH Industrial Reports Disappointing Earnings Amid Market Challenges
Quarterly Results Fall Short of Expectations
CNH Industrial (CNH) reported quarterly earnings of $0.24 per share, falling short of the Zacks Consensus Estimate of $0.28 per share. This marks a decrease from earnings of $0.42 per share in the same quarter last year, adjusted for non-recurring items.
The earnings surprise of -14.29% highlights ongoing challenges for the company. Last quarter, CNH had met expectations by posting earnings of $0.38 per share without any surprises.
Revenue Decline and Industry Position
For the quarter ending September 2024, CNH generated revenues of $4.65 billion, which missed the Zacks Consensus Estimate by 2.61%. This is a significant drop from the previous year’s revenues of $5.99 billion. Over the past four quarters, CNH has exceeded revenue estimates just once.
The upcoming earnings call will be crucial for assessing future earnings expectations and management’s insights. So far this year, CNH shares have declined by about 4.9%, while the S&P 500 has seen a 24.3% increase.
Future Outlook and Analyst Ratings
Investors are keen to understand what lies ahead for CNH. One approach to gauge future performance is to analyze earnings outlook changes, including current expectations and recent revisions.
Data shows that there’s a strong link between short-term stock movements and earnings estimate trends. Currently, the estimate revisions trend for CNH is unfavorable. This has resulted in a Zacks Rank of #5 (Strong Sell), indicating that shares may underperform the market soon. The consensus EPS estimate for the next quarter stands at $0.34, with expected revenues of $5.55 billion, and for the current fiscal year, it is $1.33 with revenues of $20.63 billion.
It’s also important to consider the overall industry outlook, as the Manufacturing – Farm Equipment sector currently ranks in the bottom 7% of over 250 Zacks industries. Historically, the top half of Zacks-ranked industries has outperformed the bottom half by a ratio of more than 2 to 1.
Comparative Analysis with Deere
Deere (DE), another player in this industry, has not yet released its quarterly results for the period ending October 2024. Analysts predict that Deere will report earnings of $3.90 per share, reflecting a significant year-over-year decline of 52.8%. The revenue forecast for Deere is set at $9.34 billion, down 32.4% from the previous year.
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CNH Industrial N.V. (CNH): Free Stock Analysis Report
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