CNH Global
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 expanded slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.
Gross margins increased, operating margins were steady, net margins expanded.
Revenue details
CNH Global booked revenue of $4.70 billion. The six analysts polled by S&P Capital IQ predicted sales of $4.58 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $1.33. The eight earnings estimates compiled by S&P Capital IQ forecast $0.97 per share. Non-GAAP EPS of $1.33 for Q1 were 20% higher than the prior-year quarter's $1.11 per share. GAAP EPS of $1.35 for Q1 were 22% higher than the prior-year quarter's $1.11 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%, 70 basis points better than the prior-year quarter. Operating margin was 12.1%, much about the same as the prior-year quarter. Net margin was 6.6%, 110 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter's average estimate for revenue is $5.24 billion. On the bottom line, the average EPS estimate is $1.48.
Next year's average estimate for revenue is $20.01 billion. The average EPS estimate is $5.07.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 289 members out of 316 rating the stock outperform, and 27 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give CNH Global a green thumbs-up, and one 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 $48.78.
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