Gabelli Increases EPS Estimates On CNH

Gabelli is increasing its EPS estimates on CNH Global N.V.

to $2.70 and $3.20 for 2011 and 2012, respectively, after the company reported its 4Q10 results yesterday. “Sales increased 17.0% YoY to $3.8B, with agricultural equipment sales up 13.7% from 4Q09 to $3.0B and construction equipment sales increased 31.9% to $774mm,” Gabelli writes. “We continue to believe that CNH can earn more than $4 per share at the peak of the next cycle. CNH shares trade at 17.8x 2011 and 15.0x 2012 earnings; a 32.9% discount to our 2012P PMV of $72.” CNH Global currently trades at $47.87.