CNH Global
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.
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