The 10-second takeaway
For the quarter ended Sep. 30 (Q3), CNH Global beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins were steady, net margins expanded.
CNH Global chalked up revenue of $4.83 billion. The six analysts polled by S&P Capital IQ expected a top line of $4.65 billion on the same basis. GAAP reported sales were 3.8% higher than the prior-year quarter's $4.90 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 $1.34. The 10 earnings estimates compiled by S&P Capital IQ forecast $1.19 per share. GAAP EPS of $1.34 for Q3 were 18% higher than the prior-year quarter's $1.14 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 24.3%, 80 basis points worse than the prior-year quarter. Operating margin was 12.8%, about the same as the prior-year quarter. Net margin was 6.4%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.69 billion. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $19.09 billion. The average EPS estimate is $4.64.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 292 members out of 320 rating the stock outperform, and 28 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give CNH Global a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CNH Global is hold, with an average price target of $44.18.
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