Tags: CNH Global | CNH | Caterpillar | CAT | John Deere | DE

CNH Global Rides Agriculture Surge

By    |   Tuesday, 26 Jul 2011 02:17 PM

CNH Global (CNH) manufacturers agricultural and construction equipment under the New Holland, Steyr, Nobelco, and Case IH brand names. CNH Global is headquartered in Amsterdam, and the company is 89 percent owned by Fiat of Italy. The company has 40 manufacturing facilities on four continents and sales operations in 170 countries.

CNH coverage of both construction and agriculture equipment production allows the company to continue selling equipment is differing economic conditions and to ride the waves of either agriculture or construction growth. CNH provides investors with more agriculture exposure than Caterpillar (CAT) and more construction equipment exposure than John Deere (DE).

For the first quarter of 2010, CHN handily exceeded Wall Street expectations by reporting net income of 57 cents per share on revenues of $3.8 billion up from same quarter in 2010, when the net was 16 cents. Sales were 17 percent higher than the year-earlier period. The consensus earnings estimate was 43 cents per share for the quarter.

Over the last four quarters, the CNH earnings results have handily exceeded the consensus estimates, beating the Wall Street number by at least 25 percent each quarter and doubling the estimate in the fourth quarter or 2010. It appears the analysts are catching on to the strong results CHN Global is putting up.

The consensus earnings estimate for the second quarter is 98 cents per share, compared to earnings of 59 cents in 2010. Sales are forecast to be $4.45 billion, up from $3.94 billion.

Entry point

Noting the CNH share price has lagged the S&P 500 by about 20 percent this year, UBS analyst Henry Kirn has put a buy rating on the stock. The low current share price is viewed as an attractive entry point for the stock and strong corn prices in North America have the company's dealers reporting excellent sales.

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CNH Global (CNH) manufacturers agricultural and construction equipment under the New Holland, Steyr, Nobelco, and Case IH brand names. CNH Global is headquartered in Amsterdam, and the company is 89 percent owned by Fiat of Italy. The company has 40 manufacturing facilities...
CNH Global,CNH,Caterpillar,CAT,John Deere,DE
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2011-17-26
Tuesday, 26 Jul 2011 02:17 PM
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