NYSE$CNH

CNH Industrial NV · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

CNH Industrial's first quarter results were reported, showing a revenue decline due to lower industry demand, but cost reduction programs helped mitigate the impact.

CNH Industrial reported a decrease in consolidated revenue by 10% to $4.82 billion due to lower industry demand. Net income was $402 million, with diluted EPS at $0.31. The company is navigating a declining market by focusing on production efficiency, commercial execution, and cost reductions.

  • Consolidated revenue decreased by 10% due to lower industry demand.
  • Diluted EPS was $0.31, and adjusted diluted EPS was $0.33.
  • Agriculture segment's adjusted EBIT margin decreased, while Construction segment's increased.
  • Cost reduction programs are on track to mitigate slowing markets impact.

Headline financials

Total Revenue

$4.82B

Previous: $5.34B-9.8%
EPS

$0.31

Previous: $0.35-11.4%
Industrial Net Sales

$4.13B

No prior period
Adj EBIT Industrial

$372M

No prior period
Adj EBIT Margin Ind.

9.0%

No prior period
Adjusted Net Income

$388M

No prior period
Industrial Free Cash Flow

-$1.21B

No prior period
Agri Adj EBIT Margin

11.5%

No prior period
Constr Adj EBIT Margin

6.7%

No prior period
Retail Loan Originations

$2.5B

Previous: $2.25B+11.3%
Free Cash Flow

$401M

Previous: $482M-16.8%
Net Income

$401M

Previous: $482M-16.8%
Operating Income

$908M

Previous: $1.03B-11.8%
Gross Profit

$1.62B

Previous: $1.73B-6.2%

Revenue & EPS history

CNH Industrial · Revenue · Quarterly

$4.82B

Q1 2024-9.8%vs Q1 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

CNH Industrial · $5.99B total across 3 segments · Q3 2023

  • Agriculture
    $4.38B-2.6%
  • Construction
    $948M+5.9%
  • Financial Services
    $653M+35.5%

Forward guidance

The Company forecasts that 2024 global industry retail sales will be lower in both the agriculture and construction equipment markets when compared to 2023. Agriculture industry retail sales are projected to be down approximately 15%, and construction equipment industry retail sales are expected to be down around 10%.

Tailwinds

  • Continuing efforts to improve through-cycle margins.
  • Cost reduction programs focused on product costs.
  • Cost reduction programs focused on SG&A expenses.
  • Restructuring actions to optimize cost structure.
  • Improve the efficiency of operations.

Headwinds

  • Agriculture segment net sales down between 11% and 15% year-over-year.
  • Agriculture segment adjusted EBIT margin between 13.5% and 14.5%.
  • Construction segment net sales down between 7% and 11% year-over-year.
  • Construction segment adjusted EBIT margin between 5.0% and 6.0%.
  • Free Cash Flow of Industrial Activities between $1.1 and $1.3 billion.

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 2024

Historical avgQ1 2024

-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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