NYSE$CNH

CNH Industrial NV · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

CNH Industrial reported record results driven by strong demand for agriculture equipment and improved construction performance.

CNH Industrial reported strong Q1 2023 results, with consolidated revenues up 15% to $5,342 million and net income reaching $486 million. The company benefited from robust demand in the agriculture sector and improved performance in construction, particularly in North America. Strategic acquisitions and lean enterprise programs are contributing to a simpler and more effective company.

  • Consolidated revenues increased by 15% compared to Q1 2022, reaching $5,342 million.
  • Net income was $486 million, with diluted EPS of $0.35.
  • Net sales for Industrial Activities increased by 14% compared to Q1 2022, totaling $4,776 million.
  • Net sales guidance for FY 2023 was updated to an increase of 8-11% vs 2022.

Headline financials

Total Revenue

$5.34B

Previous: $4.65B+15.0%
EPS (adj)

$0.35

Previous: $0.28+25.0%
Retail Loan Originations

$2.25B

No prior period
Free Cash Flow

$482M

No prior period
Net Income

$482M

Previous: $333M+44.7%
Operating Income

$1.03B

No prior period
Gross Profit

$1.73B

Previous: $1.36B+27.4%
Cash & Equivalents

$3.21B

Previous: $3.22B-0.2%
Total Assets

$40.6B

Previous: $36.5B+11.2%

Revenue & EPS history

CNH Industrial · Revenue · Quarterly

$5.34B

Q1 2023+15%vs Q1 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

CNH Industrial · $5.33B total across 3 segments · Q1 2023

  • Agriculture
    $3.93B
  • Construction
    $849M
  • Financial Services
    $549M

Forward guidance

CNH Industrial updated the 2023 outlook for its Industrial Activities.

Tailwinds

  • Net sales up between 8% and 11% year on year including currency translation effects
  • North American demand for row crop products is strong.
  • Globally, pricing continues to be resilient.
  • Order backlog remains solid and well above 2019 levels.

Headwinds

  • SG&A up, no more than 5% vs 2022
  • The Company is unable to provide this reconciliation without unreasonable effort due to the uncertainty and inherent difficulty of predicting the occurrence, the financial impact, and the periods in which the adjustments may be recognized.
  • For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.2%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+2.0%

Avg return

30 days after

50%

27 / 54 earnings

Positive

+8.6%

Q4 2021

Best reaction

-10.0%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.3%+2.4%+1.3%
Q4 2025+2.7%+2.4%-20.9%
Q3 2025-5.9%+0.7%-8.0%
Q1 2025+7.4%+7.0%+8.1%
Q3 2024-7.9%-11.4%+3.5%
Q2 2024-0.6%-4.1%+1.7%
Q1 2024+1.3%+5.0%-6.8%
Q4 2023+4.5%+2.8%+4.4%
Q3 2023-9.6%-12.2%-3.7%
Q2 2023-6.0%-5.7%-14.9%
Q1 2023+5.9%+4.3%+0.0%
Q4 2022-10.0%-10.1%-4.9%
Q3 2022+6.5%+14.7%+20.5%
Q2 2022+2.5%+1.9%+1.6%
Q1 2022+3.4%-0.3%+5.5%
Q4 2021+8.6%+8.8%-0.3%
Q3 2021-1.0%-2.4%-6.2%
Q2 2021+0.1%-0.5%+1.1%
Q1 2021+7.9%+11.1%+18.3%
Q4 2020+2.9%+4.6%+9.5%
Q3 2020+8.6%+10.8%+33.2%
Q2 2020-9.7%-2.7%+6.0%
Q1 2020-6.9%-3.3%+30.8%
Q4 2019-7.2%-3.1%-11.0%
Q3 2019-4.7%-2.9%-9.0%
Q2 2019-4.8%-8.9%+1.5%
Q1 2019-5.5%-6.6%-13.4%
Q4 2018+2.3%+4.4%+2.3%
Q3 2018-3.8%-8.8%-10.2%
Q2 2018+8.6%+10.2%+10.6%
Q4 2017-2.4%-0.5%-6.1%
Q1 2018+4.6%+4.2%+5.4%
Q3 2017+8.0%+7.6%+7.4%
Q2 2017-1.0%-0.6%-4.4%
Q1 2017+2.8%+2.4%+5.8%
Q4 2016-2.0%+2.0%+3.4%
Q3 2016-3.9%-6.9%+10.8%
Q2 2016-0.8%+0.9%+4.7%
Q1 2016+3.7%
Q4 2015+6.2%
Q3 2015+2.0%
Q2 2015-1.9%
Q1 2015-0.4%
Q4 2014+3.9%
Q3 2014+0.4%
Q2 2014-1.3%
Q4 2011+0.6%
Q1 2014-5.9%
Q4 2013-5.7%
Q3 2013-7.6%
Q2 2013+2.1%
Q1 2013-9.4%
Q4 2012-0.7%
Q3 2012+0.3%

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