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Market Overview

Preview: CNH Industrial's Earnings


On Wednesday, February 03, CNH Industrial (NYSE:CNHI) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

CNH Industrial EPS is expected to be around $0.14, according to sell-side analysts. Sales will likely be near $7.28 billion. In the same quarter last year, CNH Industrial announced EPS of $0.2 on revenue of $7.70 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Wednesday, EPS would be down 30.0%. Sales would be down 5.39% from the same quarter last year. CNH Industrial's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.02 -0.10 0.07 0.19
EPS Actual 0.11 -0.07 -0.06 0.20
Revenue Estimate 5.24 B 4.19 B 5.34 B 7.77 B
Revenue Actual 6.49 B 5.58 B 5.46 B 7.70 B

Stock Performance

Shares of CNH Industrial were trading at $13.12 as of February 01. Over the last 52-week period, shares are up 34.83%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. CNH Industrial is scheduled to hold the call at 09:30:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings