CNH Global Hits Estimates in Solid Quarter

CNH Global (NYSE: CNH  ) reported earnings Wednesday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), CNH Global met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share improved.

Gross margins improved, operating margins shrank, and net margins grew.

Revenue details
CNH Global tallied revenue of $5.28 billion. The seven analysts polled by S&P Capital IQ hoped for sales of $5.32 billion on the same basis. GAAP reported sales were 2.2% higher than the prior-year quarter's $5.17 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.47. The 10 earnings estimates compiled by S&P Capital IQ anticipated $1.49 per share. GAAP EPS of $1.47 for Q2 were 11% higher than the prior-year quarter's $1.33 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 24.7%, 10 basis points better than the prior-year quarter. Operating margin was 12.3%, 110 basis points worse than the prior-year quarter. Net margin was 6.7%, 50 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $4.94 billion. On the bottom line, the average EPS estimate is $1.23.

Next year's average estimate for revenue is $19.76 billion. The average EPS estimate is $4.58.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 293 members rating the stock outperform and 27 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give CNH Global a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CNH Global is outperform, with an average price target of $51.27.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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