CNH Industrial Shares Plummet After Q3 Profit Miss and Guidance Cut

CNH Industrial (NYSE: CNH) shares took a significant hit on Friday, following the company's third-quarter earnings report that missed analyst estimates and a subsequent cut in its 2024 profit forecast. The farm and construction equipment maker's stock fell more than 10% in premarket trading, reflecting investor concerns about weak demand and reduced dealer inventory requirements.

CNH Industrial reported a net income of $310 million and diluted earnings per share (EPS) of $0.24 for the three months ended September 30, 2024, compared to $540 million and $0.40 in the same period last year. Consolidated revenues declined by 22% to $4.65 billion, driven by lower industry demand and reduced dealer inventory requirements. The company's adjusted net income was $304 million, with adjusted diluted EPS of $0.24, falling short of the estimates of $27 cents.

The agriculture segment, which accounts for a significant portion of CNH Industrial's revenue, saw a 24% decline in net sales to $3.31 billion. This was primarily due to lower shipment volumes, decreased industry demand, and unfavorable net price realization. The construction segment also experienced a 21% to 22% decline in net sales, reflecting the weak industry retail demand and elevated dealer inventories.

CNH Industrial revised its 2024 outlook, with Agriculture segment net sales expected to decline between 22% and 23% year-over-year, and adjusted EBIT margin projected to be between 10.5% and 11.5%. The company also lowered its forecast for adjusted diluted EPS to the range of $1.05 to $1.15, down from the previous guidance of $1.30 to $1.40.

The company's CEO, Gerrit Marx, acknowledged the challenging market conditions and emphasized the need to align production levels with retail demand. CNH Industrial is focusing on making its operations more efficient and responsive to customers' needs while investing in technology and quality-improving processes.



The decline in industry demand and dealer inventory requirements significantly impacted CNH Industrial's third-quarter performance. The company's revenue and profit missed analyst estimates, leading to a cut in its 2024 profit forecast. Despite the challenges, CNH Industrial remains focused on long-term positioning and is investing in technology and quality-improving processes to align production levels with retail demand and reduce dealer inventories.



In conclusion, CNH Industrial's shares fell after the company missed third-quarter profit estimates and cut its 2024 profit forecast due to weak demand and reduced dealer inventory requirements. The agriculture and construction segments experienced significant declines in net sales, reflecting the challenging market conditions. Despite the setbacks, CNH Industrial is committed to long-term positioning and is investing in technology and quality-improving processes to maintain its leading position in the industry.