NEW YORK - CNH Industrial N.V. (NYSE:CNH) shares fell 11% after the agricultural and construction equipment maker reported third-quarter earnings that missed estimates and lowered its full-year outlook, citing weak demand and high dealer inventories.
The company reported adjusted earnings per share of $0.24 for the third quarter, falling short of analyst expectations of $0.27. Revenue came in at $4.65 billion, surpassing the consensus estimate of $4.4 billion but declining 22% YoY.
CNH Industrial lowered its full-year 2024 adjusted EPS guidance to a range of $1.05 to $1.15, well below the previous forecast of $1.30 to $1.40 and analyst expectations of $1.23. The company cited continued weak end markets and elevated channel inventory levels as reasons for the reduced outlook.
"With the current challenging market conditions facing farmers across the globe, CNH is implementing decisions to advance our transformation journey," said CEO Gerrit Marx. "We have focused on making the Company's operations more efficient and on being more responsive to our customers' needs. But dealer inventories remain elevated and will require additional efforts to align with retail demand."
The company now expects Agriculture segment net sales to decline between 22% and 23% YoY, compared to its previous forecast of a 15% to 20% drop. Construction segment net sales are projected to fall 21% to 22%, also worse than earlier estimates.
CNH Industrial also reversed its free cash flow guidance, now projecting an outflow of $100 million to $300 million for 2024, compared to its previous outlook for an inflow of $700 million to $900 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.