CNH Global N.V. Earnings: Margins Expand For Fifth Straight Quarter, but Net Income Falls

Rising costs hurt CNH Global N.V. (NYSE:CNH) in the fourth quarter as profit dropped from a year earlier. CNH Global is a global, full-line company in both the agricultural and construction equipment industries with positions in many significant geographic and product categories in both agricultural and construction equipment.

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CNH Global Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for CNH Global N.V. fell to $193 million (80 cents per share) vs. $209 million (87 cents per share) a year earlier. This is a decline of 7.7% from the year earlier quarter.

Revenue: Rose 26.8% to $4.77 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CNH beat the mean analyst estimate of 72 cents per share. It beat the average revenue estimate of $4.41 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 23.1%, with the biggest boost coming in the third quarter when revenue rose 30.3% from the year earlier quarter.

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the third quarter, net income rose more than threefold from the year earlier, while the figure increased more than twofold in the second quarter, 850% in the first quarter and more than sevenfold in the fourth quarter of the last fiscal year.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 31 cents in the third quarter, by 34 cents in the second quarter, and by 14 cents in the first quarter.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for first quarter of the next fiscal year has fallen from 71 cents per share to 69 cents. The average estimate for the fiscal year is $3.75 per share, a rise from $3.66 ninety days ago.

Competitors to Watch: AGCO Corporation (NYSE:AGCO), Arts-Way Manufacturing Co. Inc. (NASDAQ:ARTW), Deere & Company (NYSE:DE), Caterpillar Inc. (NYSE:CAT), Lindsay Corporation (NYSE:LNN), Alamo Group, Inc. (NYSE:ALG), Kubota Corporation (NYSE:KUB), Manitowoc Company, Inc. (NYSE:MTW), and Columbus McKinnon Corp. (NASDAQ:CMCO).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com