The 10-second takeaway
For the quarter ended June 30 (Q2), CNH Global beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
CNH Global recorded revenue of $5.73 billion. The six analysts polled by S&P Capital IQ predicted revenue of $5.23 billion on the same basis. GAAP reported sales were 8.5% higher than the prior-year quarter's $5.28 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $1.93. The nine earnings estimates compiled by S&P Capital IQ predicted $1.50 per share. Non-GAAP EPS of $1.93 for Q2 were 31% higher than the prior-year quarter's $1.47 per share. GAAP EPS of $1.92 for Q2 were 31% higher than the prior-year quarter's $1.47 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 25.7%, 100 basis points better than the prior-year quarter. Operating margin was 14.3%, 70 basis points better than the prior-year quarter. Net margin was 8.2%, 150 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $5.08 billion. On the bottom line, the average EPS estimate is $1.36.
Next year's average estimate for revenue is $19.98 billion. The average EPS estimate is $5.00.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 294 members out of 320 rating the stock outperform, and 26 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 69 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 $47.56.
Is CNH Global the right retailer for your portfolio? Learn how to maximize your investment income and ""Secure Your Future With 9 Rock-Solid Dividend Stocks,"" including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add CNH Global to My Watchlist.