NYSE$CNH

CNH Industrial NV · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

CNH Industrial's Q3 2023 results saw increased revenue and net income amid softer demand, with segments improving profitability through cost containment.

CNH Industrial reported a 2% year-over-year increase in both consolidated revenue and net income for Q3 2023. Despite softer demand in certain product categories and South America, segments improved profitability by executing cost containment actions. The company is initiating a restructuring program and expects a run rate reduction of 10-15% on total labor and non-labor SG&A expenses.

  • Q3 consolidated revenue and net income both increased by 2% year-over-year.
  • Agriculture segment adjusted EBIT margin up 50 bps year-over-year to 15.3%, despite net sales declining by 3%.
  • Construction segment adjusted EBIT margin up 360 bps year-over-year to 6.3%, with net sales increasing by 6%.
  • Announcing immediate restructuring program to be followed by a thorough review of SG&A cost structure.

Headline financials

Total Revenue

$5.99B

Previous: $5.88B+1.8%
EPS (adj)

$0.42

Previous: $0.41+2.4%
Capital Expenditures

-$324M

No prior period
Free Cash Flow

$567M

Previous: $556M+2.0%
Net Income

$567M

Previous: $556M+2.0%
Operating Income

$1.17B

Previous: $1.07B+9.9%
Gross Profit

$1.93B

Previous: $1.73B+11.7%
Cash & Equivalents

$2.98B

Previous: $3.15B-5.5%
Total Assets

$43B

Previous: $35.8B+20.1%

Revenue & EPS history

CNH Industrial · Revenue · Quarterly

$5.99B

Q3 2023+1.8%vs Q3 2022
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

Given the softening of end market conditions, predominantly in South America, the Company is modifying the 2023 outlook for its Industrial Activities.

Tailwinds

  • Net sales up between 3% and 6% year on year including currency translation effects
  • SG&A up no more than 5% vs 2022
  • Free Cash Flow of Industrial Activities between $1.0bn and $1.2bn
  • R&D expenses and capital expenditures at around $1.6bn
  • Adjusted diluted EPS is targeted at about $1.70.

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 Q3 2023

Historical avgQ3 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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