CNH Industrial's stock fell 5.18% during pre-market trading on Tuesday. The sharp decline followed the company's release of its fourth-quarter earnings and forward-looking guidance.
While CNH Industrial reported Q4 adjusted earnings of $0.19 per share, beating the FactSet consensus estimate of $0.11, and revenue of $5.16 billion, surpassing the $4.96 billion estimate, investors focused on a significant drop in net income, which fell 49% to $89 million. More critically, the company's guidance for 2026 disappointed the market. CNH Industrial expects adjusted diluted earnings per share in the range of $0.35 to $0.45, which is below the FactSet consensus estimate of $0.51.
Furthermore, the company highlighted a challenging industry environment. Management indicated that North American demand for agricultural equipment is expected to be weak, with a resumption of growth not anticipated until 2027. Additionally, industry construction equipment demand is forecasted to be flattish in 2026 compared to 2025. This cautious outlook, combined with the below-consensus earnings guidance, drove the negative investor sentiment in the pre-market session.
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