CNH has entered into an agreement with Starlink, a SpaceX subsidiary, to deliver satellite internet services to the agricultural sector. This partnership aims to equip customers of CNH brands such as Case IH, New Holland, and Steyr with high-speed internet connectivity, enhancing their farming operations. By integrating Starlink's satellite technology, CNH seeks to revolutionize the connectivity experience for its users, facilitating improved communication and efficiency in farming practices.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for CNH Industrial NV (CNH, Financial) is $14.96 with a high estimate of $17.80 and a low estimate of $12.00. The average target implies an upside of 11.68% from the current price of $13.40. More detailed estimate data can be found on the CNH Industrial NV (CNH) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, CNH Industrial NV's (CNH, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CNH Industrial NV (CNH, Financial) in one year is $12.75, suggesting a downside of 4.85% from the current price of $13.4. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CNH Industrial NV (CNH) Summary page.
CNH Key Business Developments
Release Date: May 01, 2025
- Consolidated Revenue: $3.8 billion, down 21% year-over-year.
- Industrial Adjusted EBIT: $101 million, down 73% compared to last year.
- EPS: $0.10 for the quarter.
- Industrial Net Sales: Just below $3.2 billion, down 23% year-over-year.
- Free Cash Flow for Industrial Activities: $567 million outflow.
- Agriculture Net Sales: Decreased 23% in the quarter.
- Gross Margin: 20%, down 380 basis points year-over-year.
- Adjusted EBIT Margin for Agriculture: 5.4%.
- Construction Net Sales: $591 million, down 22% year-over-year.
- Gross Margin for Construction: 14.9%, down 250 basis points year-over-year.
- Adjusted EBIT Margin for Construction: 2.4%.
- Financial Services Net Income: $90 million.
- Retail Originations: $2.4 billion.
- Managed Portfolio: $28 billion.
- Dividend Proposal: $0.25 per share, over $300 million.
- Production Hours: Down 26% compared to Q1 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CNH Industrial NV (CNH, Financial) successfully reduced dealer inventories by $100 million in Q1, aligning with their goal of a $1 billion reduction by year-end.
- The company launched a new automated spraying solution using vision technology from Augmenta, enhancing their product offerings without additional subscription costs for farmers.
- CNH Industrial NV (CNH) maintained a favorable price-cost relationship despite lower pricing in agriculture, with expectations for better pricing comparisons in the second half of the year.
- The financial services segment performed well, providing competitive financing options despite market slowdowns and higher risk provisioning needs.
- CNH Industrial NV (CNH) is strategically positioned to benefit from potential shifts in global commodity demand, particularly in regions like Brazil.
Negative Points
- Consolidated revenues for the first quarter were down 21% to $3.8 billion, reflecting a challenging market environment.
- Industrial adjusted EBIT decreased by 73% compared to the previous year, indicating significant profitability challenges.
- The company faced a 26% reduction in production hours compared to Q1 2024, with agriculture and construction segments both experiencing declines.
- Higher expected risk costs and increased taxes negatively impacted the financial services segment's net income.
- The ongoing tariff discussions and global trade uncertainties pose significant risks to CNH Industrial NV (CNH)'s operations and financial performance.
