NYSE$CNH

CNH Industrial NV · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

CNH Industrial's financial performance reflected mixed results with net income increasing despite a revenue decline. Agriculture segment's EBIT margin improved, and the company announced a share buyback program.

CNH Industrial reported a 4% increase in fourth-quarter net income despite a 2% decline in consolidated revenue. The Agriculture segment saw an adjusted EBIT margin increase of 40 bps, while the Construction segment's EBIT margin rose by 230 bps. The company announced an additional $500 million share buyback program.

  • Q4 2023 net income increased by 4% year-over-year.
  • Consolidated revenue decreased by 2% compared to Q4 2022.
  • Agriculture segment adjusted EBIT margin increased by 40 bps year-over-year.
  • Construction segment adjusted EBIT margin increased by 230 bps year-over-year.

Headline financials

Total Revenue

$6.79B

Previous: $6.94B-2.2%
EPS (adj)

$0.42

Previous: $0.36+16.7%
Retail Loan Originations

$3.41B

Previous: $9.96B-65.7%
Capital Expenditures

-$410M

No prior period
Net Income

$617M

Previous: $592M+4.2%
Operating Income

$577M

Previous: $725M-20.4%
Gross Profit

$2.09B

Previous: $1.97B+6.2%
R&D Expense

$275M

No prior period
Stock-Based Comp

$99M

Previous: $87M+13.8%

Revenue & EPS history

CNH Industrial · Revenue · Quarterly

$6.79B

Q4 2023-2.2%vs Q4 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

The Company forecasts that 2024 global industry retail sales will be lower in both the agriculture and construction equipment markets when compared to 2023.

Tailwinds

  • Agriculture segment adjusted EBIT margin between 14.0% and 15.0%
  • Construction segment adjusted EBIT margin between 5.0% and 6.0%
  • Free Cash Flow of Industrial Activities between $1.2bn and $1.4bn
  • Adjusted diluted EPS between $1.50 to $1.60
  • Company is continuing its efforts to improve through-cycle margins with its two previously announced cost reduction programs.

Headwinds

  • Agriculture segment net sales down between 8% and 12% year-over-year including currency translation effects
  • Construction segment net sales down between 7% and 11% year-over-year including currency translation effects
  • Global industry retail sales will be lower in both the agriculture and construction equipment markets when compared to 2023.
  • Agriculture industry retail sales will be down 10-15%
  • Construction equipment industry retail sales will be down around 10%

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 Q4 2023

Historical avgQ4 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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