CNH Posts Solid Report, Shares Drop on Outlook (CNH, DE, CAT)

Ag and construction machinery maker CNH Global N.V. (NYSE: CNH) reported fourth quarter and full-year earnings this morning, beating EPS and revenue estimates for the year and for the quarter. The company’s report focused on full-year numbers, which show a 25% jump in total sales, led by a 32% rise in construction equipment sales. CNH, makers of Case and New Holland equipment, competes with Deere & Co. (NYSE: DE) and Caterpillar Inc. (NYSE: CAT).

Full-year adjusted EPS came in at $3.82, compared with a consensus estimate of $3.67. Full-year revenues totaled $18.1 billion against an estimate of $17.66 billion. For the quarter, adjusted EPS and total revenues equaled $0.79 and $5.04 billion, respectively. Estimates called for EPS of $0.72 on revenues of $4.41 billion.

CNH’s share price is down sharply today because the limited outlook that the company provided is not terribly encouraging. CNH estimates that ag equipment demand will rise just 5%, and construction equipment demand will be stronger, up 15%-20%. Those numbers are considerably below 2011 performance, which could be leading investors to assume that there’s no place to go but down.

Shares are currently trading nearly -9.5% at $42.11 in a 52-week range of $22.19-$54.45.

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