CNH Industrial beats by $0.02, misses on revs; reaffirms FY19 EPS guidance, cuts Industrial Activities sales guidance (10.11)
- Reports Q2 (Jun) earnings of $0.31 per share, excluding non-recurring items, $0.02 better than the S&P Capital IQ Consensus of $0.29; revenues fell 5.9% year/year to $7.57 bln vs the $7.8 bln S&P Capital IQ Consensus.
- Co reaffirms guidance for FY19, sees EPS of $0.84-0.88, excluding non-recurring items, vs. $0.86 S&P Capital IQ Consensus; Co now sees FY19 net sales of Industrial Activities between $27-27.5 bln (Prior ~$28 bln).
- Commentary:
- While uncertainties in the agricultural end-markets related to the trade tensions remain unresolved, and negative impacts from recent weather events (in North America, Australia and Northern Europe) are persisting, which has impacted planting and harvesting patterns and market sentiment, cyclical replacement demand remains stable, with used equipment inventories at low levels supporting new equipment sales in North America.
- End-user demand in the construction industry remains healthy, supported by spending for public and infrastructure investments. Despite this strength, conditions in the construction industry are still challenged in the residential sub-segment.
- European demand in the truck and bus industries continues to hold at a high level, supported by a low interest rate environment, and by the transition to lower emission vehicles including full electric and hybrid buses, and LNG and CNG powered trucks