CNH Global NV Fourth Quarter Earnings Sneak Peek

CNH Global NV (ADR) (NYSE:CNH) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. 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.

CNH Global NV (ADR) Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 71 cents per share, a decline of 9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 72 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 20.9% versus last year to $4.63.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the third quarter, it reported net income of $1.34 per share against a mean estimate of profit of $1.16 per share. In the second quarter, it missed forecasts by one cent.

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Stock Price Performance: From December 26, 2012 to January 25, 2013, the stock price rose $7.42 (18.5%), from $40.10 to $47.52. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 9, 2012, when shares rose for six straight days, increasing 9.3% (+$3.52) over that span. It saw one of its worst periods between February 21, 2012 and February 29, 2012 when shares fell for seven straight days, dropping 3.9% (-$1.74) over that span.

A Look Back: In the third quarter, profit rose 17.9% to $323 million ($1.34 a share) from $274 million ($1.14 a share) the year earlier, exceeding analyst expectations. Revenue rose 10.2% to $5.08 billion from $4.61 billion.

Here’s how CNH Global NV traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

cnh

Wall St. Revenue Expectations: On average, analysts predict $4.61 billion in revenue this quarter, a decline of 3.4% from the year-ago quarter. Analysts are forecasting total revenue of $19.16 billion for the year, a rise of 6.1% from last year’s revenue of $18.06 billion.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 77% in the first quarter and 10.9% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 17.6% in the fourth quarter of the last fiscal year, 20% in the first quarter and 8.2% in the second quarter before increasing again in the third quarter.

Analyst Ratings: There are mostly holds on the stock with four of five analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.31 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 3.29 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 3.8% to $26.14 billion while liabilities rose by 3.3% to $7.9 billion.

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