The 10-second takeaway
For the quarter ended March 31 (Q1), CNH Global beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved significantly.
Margins expanded across the board.
CNH Global reported revenue of $4.64 billion. The seven analysts polled by S&P Capital IQ looked for a top line of $4.20 billion on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $4.08 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.11. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.72 per share. GAAP EPS of $1.11 for Q1 were 76% higher than the prior-year quarter's $0.63 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.0%, 30 basis points better than the prior-year quarter. Operating margin was 11.1%, 40 basis points better than the prior-year quarter. Net margin was 5.5%, 180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $5.34 billion. On the bottom line, the average EPS estimate is $1.49.
Next year's average estimate for revenue is $19.46 billion. The average EPS estimate is $4.55.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 298 members rating the stock outperform and 27 members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 84 give CNH Global a green thumbs-up, and four 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 $50.40.
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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. 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.