CNH

It has been about a month since the last earnings report for CNH Industrial (CNH). Shares have added about 11.4% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is CNH due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. CNH Industrial reported second-quarter 2026 adjusted earnings of 13 cents per share, down 23.5% year over year but above the Zacks Consensus Estimate of 11 cents by 18.2%. Positive pricing and cost-saving actions partly offset lower industry demand and tariff pressure.Consolidated revenues rose 2% year over year to $4.80 billion and beat the consensus estimate by 0.8%. Net sales of Industrial Activities increased 3% to $4.14 billion, with Construction growth helping offset a still-weak agricultural equipment cycle. Agriculture net sales increased 0.9% year over year to $3.28 billion. Favorable price realization supported the top line, while lower volumes remained a drag. North America sales rose 9.9%, EMEA gained 0.8% and Asia Pacific advanced 11.3%, while South America declined 27.0%.Adjusted EBIT fell to $170 million from $263 million, with the margin contracting to 5.2% from 8.1%. Lower South America volumes, unfavorable mix in North America and EMEA, tariffs, higher SG&A and R&D expenses, and weaker joint venture results weighed on profitability. Favorable pricing provided a partial offset. Adjusted gross margin declined to 19.7% from 21.8%. Construction net sales climbed 12.0% year over year to $866 million, led by higher shipment volumes in North America. The quarter also included machines whose shipments were delayed in the first quarter because of a supplier quality issue. North America sales increased 23.5%.Profitability did not keep pace with sales. Adjusted EBIT declined to $15 million from $35 million, while the margin fell to 1.7% from 4.5%. Tariffs and higher R&D expenses were the main pressures, partially offset by higher volumes and lower SG&A expenses. Adjusted gross margin declined to 11.9% from 15.7%. Financial Services revenues decreased 4.2% year over year to $656 million. Lower volumes in South America and North America, fewer used-equipment sales tied to operating lease maturities and lower yields in most regions pressured revenues, partly offset by favorable currency translation.Segment net income fell 18.4% to $71 million. Retail loan originations were $2.53 billion, down $209 million, while the managed portfolio ended at $28.0 billion, down $0.7 billion. Receivables more than 30 days past due rose to 4.4% from 3.9%, mainly reflecting economic pressure on farmers in South America. Net cash provided by operating activities was $145 million in the quarter, down from $772 million a year earlier. Industrial Activities generated $150 million of free cash flow versus $451 million, with management attributing the decline to lower EBIT and higher working capital investment.Cash and cash equivalents totaled $1.87 billion at June 30, down from $2.58 billion at year-end 2025, while total debt declined to $25.97 billion from $26.76 billion. During the quarter, CNH paid $126 million in annual dividends and repurchased $36 million of shares at an average price of about $10.31. CNH now expects 2026 Industrial Activities net sales to be flat to up 2% year over year and adjusted EBIT margin of 3.2% to 3.8%. Agriculture net sales are projected to be about flat with a 5.0% to 5.5% adjusted EBIT margin. Construction net sales are expected to rise 5% to 10%, with margin of 1.8% to 2.3%.The outlook reflects lower Section 232 tariff rates. CNH now estimates the 2026 tariff cost impact at about 170 basis points for Agriculture and 470 basis points for Construction, though higher transportation costs and South American market challenges remain offsets.Industrial free cash flow is forecast at $200 million to $400 million, while adjusted diluted earnings are projected at 41 cents to 46 cents per share. For the third quarter, management expects Agriculture sales and EBIT margin to be about flat year over year, while Construction sales should rise in the low-to-mid teens with a low-to-mid-single-digit EBIT margin. Since the earnings release, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -14.29% due to these changes. Currently, CNH has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, CNH has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. CNH is part of the Zacks Manufacturing - Farm Equipment industry. Over the past month, Agco (AGCO), a stock from the same industry, has gained 14.1%. The company reported its results for the quarter ended June 2026 more than a month ago. Agco reported revenues of $2.61 billion in the last reported quarter, representing a year-over-year change of -1%. EPS of $1.43 for the same period compares with $1.35 a year ago. For the current quarter, Agco is expected to post earnings of $0.88 per share, indicating a change of -34.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -30.4% over the last 30 days. Agco has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CNH Industrial N.V. (CNH) : Free Stock Analysis Report AGCO Corporation (AGCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Deere & Company DE has reported third-quarter fiscal 2026 earnings of $5.10 per share, rising 7.4% year over year and beating the Zacks Consensus Estimate of $4.79 by 6.47%. Strength in Construction & Forestry and Small Agriculture & Turf offset weakness in Production & Precision Agriculture.Net sales from Deere’s equipment operations were $11 billion in third-quarter fiscal 2026, up 6.2% from the year-ago quarter’s $10.36 billion, reflecting strength in Small Agriculture & Turf and Construction & Forestry despite weakness in Production & Precision Agriculture. The top line beat the Zacks Consensus Estimate of $10.81 billion.Total net sales (including Financial Services and other income) rose 5% year over year to $12.61 billion. Top-line growth was supported by higher shipment volumes and favorable price realization in Small Agriculture & Turf and Construction & Forestry, partly offset by lower shipment volumes in Production & Precision Agriculture. Deere & Company price-consensus-eps-surprise-chart | Deere & Company Quote The cost of sales in the reported quarter increased 4.9% from the prior-year quarter to $7.94 billion. Total gross profit rose 9.8% year over year to $3.06 billion. Selling, administrative and general expenses (SA&G) were flat at $1.22 billion.Total operating profit (including Financial Services) increased 18% year over year to $1.86 billion in the fiscal third quarter. The Production & Precision Agriculture segment’s net sales declined 6% year over year to around $4 billion due to lower shipment volumes, partially offset by favorable price realization and foreign currency translation. Segment operating profit fell 9% from the year-ago quarter to $527 million, reflecting lower shipment volumes and sales mix, and higher production costs, partially offset by favorable price realization and foreign currency exchange.Small Agriculture & Turf net sales increased 12% year over year to $3.38 billion on higher shipment volumes and favorable price realization. Operating profit rose 28% year over year to $622 million, driven mainly by higher shipment volumes and sales mix, and favorable price realization, partially offset by higher production costs.Construction & Forestry net sales were $3.62 billion, up 18% year over year, primarily on higher shipment volumes and favorable price realization. Operating profit surged 84% year over year to $436 million, aided mainly by favorable price realization, partially offset by higher selling, administrative, general and R&D costs.Sales in Deere’s Financial Services division were $1.37 billion in the quarter, down 3% year over year. The segment’s operating profit increased 2% year over year to $271 million. Net income for Financial Services climbed 7% year over year to $219 million in the fiscal third quarter due to favorable financing spreads, partially offset by a lower average portfolio. Cash and cash equivalents totaled $8.93 billion as of Aug. 2, 2026, up from $8.28 billion at the end of fiscal 2025. Net cash provided by operating activities was $3.25 billion for the first nine months compared with $3.46 billion a year earlier. Deere also repurchased $697 million of common stock and paid out $1.32 billion in dividends. Deere raised its fiscal 2026 net income forecast to $4.75-$5 billion from the $4.5-$5 billion mentioned earlier. Equipment Operations net operating cash flow is expected to be $5-$5.50 billion, while capital expenditure is projected to be $1.30 billion and the effective tax rate is expected to be 24-26%.The company continues to view 2026 as the bottom of the current agriculture equipment cycle. Early order program trends, improving used-equipment inventories and increased customer adoption of advanced technologies underpin its confidence in the company's longer-term positioning. Shares of the company have gained 19.3% in the past year compared with the industry’s 15.2% growth. Image Source: Zacks Investment Research The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Lindsay Corporation LNN reported third-quarter fiscal 2026 earnings of $1.53 per share, beating the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line declined 14% year over year.Lindsay’s sales totaled $160.8 million, down 5% year over year. The top line missed the Zacks Consensus Estimate of $169 million by 5.15%. Irrigation softness outweighed infrastructure growth. The quarter reflected persistent demand challenges in North America and Brazil.CNH Industrial N.V. CNH reported second-quarter 2026 adjusted EPS of 13 cents, which declined from 17 cents in the prior-year quarter. The figure, however, surpassed the Zacks Consensus Estimate of 11 cents.In the second quarter, CNH Industrial’s net sales grew 2% from the year-ago level to $4.80 billion and topped the Zacks Consensus Estimate of $4.76 billion.AGCO Corp. AGCO delivered adjusted earnings per share of $1.43 in second-quarter 2026, missing the Zacks Consensus Estimate of $1.54 by 7.14%. AGCO Corp posted adjusted EPS of $1.35 in the year-ago quarter. Net sales declined 1% year over year to $2.61 billion and missed the consensus estimate of $2.73 billion. Excluding the favorable currency-translation impacts of 2.7%, net sales fell 3.7% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Lindsay Corporation (LNN) : Free Stock Analysis Report AGCO Corporation (AGCO) : Free Stock Analysis Report CNH Industrial N.V. (CNH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Deere & Company DE is scheduled to report third-quarter fiscal 2026 results on Aug. 20 before the opening bell.The Zacks Consensus Estimate for Deere’s earnings has moved north over the past 60 days to $4.79 per share. The consensus mark implies a 0.8% rise from the year-ago actual. The consensus estimate for revenues is pegged at $10.78 billion, indicating a 4.1% year-over-year increase. Image Source: Zacks Investment Research Deere’s earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and missed in one, the average surprise being 10.2%. Image Source: Zacks Investment Research Our model does not predict an earnings beat for DE this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here.Earnings ESP: The Earnings ESP for Deere is -1.14%. You can uncover the best stocks before they are reported with our Earnings ESP Filter. Zacks Rank: Deere currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. Deere has been facing challenges due to weak farmer spending amid low commodity prices. In the wake of challenging conditions in the global agricultural and construction sectors, DE has been aligning its production with demand levels.This is likely to have weighed on the company’s fiscal third-quarter performance. High production expenses are also expected to have impacted the company’s margin in the quarter.Nevertheless, favorable price realization is expected to have negated some of these headwinds, as seen in the fiscal second quarter. The Zacks Consensus Estimate for the Production & Precision Agriculture segment’s revenues is pegged at $3.94 billion for the fiscal third quarter, suggesting a year-over-year decrease of 7.9%. Gains from price realization are likely to have been offset by escalated production expenses and lower shipment volumes. The Zacks Consensus Estimate for the segment’s operating profit is pegged at $491 million, indicating a 15.3% decrease from the prior-year quarter’s reported figure.The consensus estimate for the Small Agriculture & Turf segment’s revenues is pegged at $3.39 billion for the fiscal third quarter, implying a 12% increase from the prior-year quarter’s actual. The segment’s operating profit is estimated at $495 million, suggesting 2% year-over-year growth.The Construction & Forestry segment’s sales are pegged at $3.57 billion for the fiscal third quarter, implying a 16.9% rise from the prior-year quarter’s reported number. The segment’s operating profit is pegged at $424 million, whereas it reported $237 million in the prior year.The estimate for the Financial Services segment’s revenues is pegged at $1.61 billion for the fiscal third quarter, indicating a 4.1% rise from the year-ago quarter’s actual. The projection for the segment’s operating profit is $271 million. The segment reported operating profit of $266 million in the prior-year quarter. Shares of the company have gained 23.7% in the past year compared with the industry’s 19.5% growth. Image Source: Zacks Investment Research Lindsay Corporation LNN reported third-quarter fiscal 2026 earnings of $1.53 per share, beating the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line declined 14% year over year.Lindsay’s sales totaled $160.8 million, down 5% year over year. The top line missed the Zacks Consensus Estimate of $169 million by 5.15%. Irrigation softness outweighed infrastructure growth. The quarter reflected persistent demand challenges in North America and Brazil.CNH Industrial N.V. CNH reported second-quarter 2026 adjusted EPS of 13 cents, which declined from 17 cents in the prior-year quarter. The figure, however, surpassed the Zacks Consensus Estimate of 11 cents.In the second quarter, CNH Industrial’s net sales grew 2% from the year-ago level to $4.80 billion and topped the Zacks Consensus Estimate of $4.76 billion.AGCO Corp. AGCO delivered adjusted earnings per share of $1.43 in second-quarter 2026, missing the Zacks Consensus Estimate of $1.54 by 7.14%. AGCO Corp posted adjusted EPS of $1.35 in the year-ago quarter. Net sales declined 1% year over year to $2.61 billion and missed the consensus estimate of $2.73 billion. Excluding the favorable currency-translation impacts of 2.7%, net sales fell 3.7% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deere & Company (DE) : Free Stock Analysis Report Lindsay Corporation (LNN) : Free Stock Analysis Report AGCO Corporation (AGCO) : Free Stock Analysis Report CNH Industrial N.V. (CNH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Mon, Aug. 3, 2026 at 9:00 a.m. ET Vice President of Investor Relations - Jason Omerza Chief Executive Officer - Gerrit Marx Chief Financial Officer - James A. Nickolas Operator: Good morning, and welcome to the CNH 2026 Second Quarter Results Conference Call. [Operator Instructions] I will now turn the call over to Jason Omerza, Vice President of Investor Relations. Jason Omerza: Thank you, Paige, and good morning, everyone. We would like to welcome you to CNH's second quarter earnings call for the period ending June 30, 2026. This live webcast is copyrighted by CNH and any recording, transmission or other use of any portion of it without the written consent of CNH is strictly prohibited. Hosting today's call are CNH CEO, Gerrit Marx; and CFO, Jim Nickolas. They will reference the material available for download from our website. Please note that any forward-looking statements that we make during today's call are subject to the risks and uncertainties mentioned in the safe harbor statement included in the presentation material. Additional information pertaining to factors that could cause actual results to differ materially is contained in the company's most recent annual report on Form 10-K as well as other periodic reports and filings with the U.S. Securities and Exchange Commission. Our presentation includes certain non-GAAP financial measures. Additional information, including reconciliations to the most directly comparable U.S. GAAP financial measures is included in the presentation material. I will now turn the call over to Gerrit. Gerrit Marx: Thank you, Jason, and welcome to everyone joining the call. Second quarter results were generally in line with our expectations as we continued managing through a difficult point in the agricultural equipment cycle. Operationally, we are making good use of this period to drive improvements in quality, sourcing and manufacturing efficiency. These actions are supporting performance today while strengthening our foundation for the future. We also continue advancing our precision technology capabilities with increasing adoption of connected and AI-enabled solutions across our installed base and dealer network. While overall market conditions remain challenging, particularly given pressured farmer profitability, we are seeing encouraging developments in several but not yet all equipment cycle indicators. As we think about the eventual recovery in our end markets, we find it helpful to focus on a handful of indicators that have historically provided a good signal for both the timing and strength of the next up cycle. First, channel inventories of new machines need to normalize in line with the near-term 3 to 5 forward months of sales demand depending on the machine type and support a steady production environment. Second, used equipment inventories need to return to healthy levels, creating the financial and physical capacity for dealers to manage new equipment flow through. Third, the spread between new and used equipment values needs to normalize, allowing farmers to trade equipment economically, supporting replacement demand. Fourth, commodity prices need to move sustainably above production costs and provide farmers with confidence that current profitability levels are durable enough to carry new equipment investments. And fifth, farmers generally need a profitable season behind them and confidence in another profitable season ahead before replacement demand broadens. In addition, something that helps but is not necessarily a demand driver is government assistance programs and interest rates. Farm bills that subsidize crop insurance or borrowing rates, for example. This is all helpful, but it does not set the market recovery in motion. The industry is making good progress on the first 3 indicators across our major regions, although there is still work to do through year-end. Dealer new and used inventories continue to normalize. Equipment fleets continue to age and the price gap between new and used equipment has begun to converge following several years of divergence. What remains largely absent are the fourth and fifth indicators. Commodity prices remain at or below breakeven levels for many growers, while fuel, fertilizer and transportation costs remain elevated. As a result, overall farm profitability remains under pressure and farmers remain cautious with larger capital investment decisions beyond immediate replacement demand. When we put all these factors together, our baseline expectation is for an L-shaped recovery with 2027 retail demand remaining broadly flat with replacement demand continuing to carry much of the market. As inventories normalize, we expect to increase production to better align with retail demand. Beyond replacement demand, however, it will take stronger farm profitability and greater farmer confidence to support a more pronounced industry recovery. While we don't yet see evidence of a sustained recovery, conditions are becoming more constructive and several of the foundational elements required for the next phase of the cycle are falling into place. Turning to the results. Our second quarter performance reflects seasonal sequential volume improvements after a low Q1 and continued disciplined execution across the business. Consolidated revenues were $4.8 billion, up 2% year-over-year, including about 2% positive currency impact. Our Ag segment sales were up 1% with North America up 10%, EMEA up 1%, but South America down 27%. With farm incomes depressed and macroeconomic uncertainty, we saw continued softness in equipment demand. Industrial adjusted EBIT was $167 million, reflecting lower industry demand as well as the continued impact of tariffs. These factors were only partially offset by positive pricing and cost-saving actions. For the quarter, adjusted net income was $161 million with adjusted EPS at $0.13. Free cash flow from industrial activities was $150 million, a year-over-year decline due to lower EBIT and higher working capital investments. We remain fully committed to our long-term strategy and delivering sustainable value through the cycle. Our company strategy is centered around 5 key strategic pillars: expanding product leadership, advancing our iron and tech integration, driving commercial excellence, operational excellence, and quality as a mindset. Even in a challenging market environment, we continue investing in the capabilities that will differentiate CNH over the long term and position us strongly for the next cycle. Today, I would like to focus on the progress we are making in our dealer consolidation efforts and our strategic sourcing program. In February, we told you about some flagship transactions around the world where we are expanding and consolidating our dealer network. Today, I'm going to review a few more success stories with you. Splintered Oak in East Texas is an example of a dealer expanding its territory. We also have dealer owners expanding to both brands, such as Gruett's in Wisconsin, ATV Sachsen in Germany and Cocari in Brazil, all expanding into dual brands through acquisitions of Case IH locations. Expanding our dealers' reach not only helps their ability to service farmers in their markets, it also helps focus our strong and iconic brands more individually and in their collective lineup to compete more effectively in the marketplace. We're getting ready to officially launch the next wave of our strategic sourcing program next month with our supplier convention in Amsterdam. So I thought I would take the opportunity to remind you what this program is and what it is delivering. The program is a disciplined process where we identify potential suppliers alongside our existing vendors and conduct rigorous evaluations to achieve the best supply chain for CNH. The goal is not just material cost reductions, although that is certainly one of the outcomes. We are also looking for a supply base that can grow with us, deliver outstanding quality, service production and aftermarket demand and work with us on finding the best total value for our farmers and builders. The program has been a great success so far, and we are well on our way to meeting our target of adding 100 to 150 basis point margin improvement from this sourcing effect alone by 2030. I look forward to meeting with our next wave of prospective suppliers in September and continue this important transformation. With that, I will now turn the call over to Jim to take us through the details of our financial and guidance. James A. Nickolas: Thank you, Gerrit. Agriculture Q2 net sales were about $3.3 billion, up 1% year-over-year, including 2% positive currency translation. North America saw higher year-over-year volume and pricing, while South America was down on both fronts. Sales in EMEA were about flat. Gross margin was 19.7% from 21.8% a year ago. While sales were about flat overall, we saw unfavorable product mix in North America with large tractors down more than small tractors and in South America with combines down more than tractors. Agriculture adjusted EBIT margin was 5.2% from 8.1% in Q2 2025, reflecting the unfavorable product mix and a tariff headwinds with positive pricing only partially offsetting these pressures. The good news is that price/cost was again positive for the quarter, and we expect that to be true for the full year as well. Dealer inventories were slightly down sequentially, but we would say almost flat. By region, inventories were down in North and South America, but were partially offset by increases in EMEA, where retail demand was softer than expected. We are working toward reducing dealer inventory by another $400 million to $500 million by year-end, and our timing was always weighted more towards the fourth quarter. Construction net sales in the quarter were up 12% year-over-year to $866 million, driven by higher sales in North America. Performance in North America was strong, driven by volume growth, which included some of the machine shipments that were delayed in Q1 as a result of the supplier quality issue that we discussed last quarter. EMEA saw modest volume growth, supported by favorable currency, while South America saw the most challenging conditions during the quarter. Q2 gross margin was 11.9% from 15.7% a year ago, where the decline was mainly driven by the impact of the tariffs. Construction adjusted EBIT margin was 1.7%, down from 4.5% in Q2 2025, reflecting significantly higher tariffs, which more than offset the strong volume performance. In Financial Services, segment net income in the quarter was $71 million, down versus 2025, mainly due to margin compression in all regions, higher risk costs in Brazil, partially offset by a lower effective tax rate. Retail originations in the second quarter were $2.5 billion, and the managed portfolio ended the quarter at $28 billion. Delinquency rates saw their usual seasonal uptick in Q2 to 4.4%, but were higher year-over-year, primarily driven by the persistent economic difficulties in South America. Just as a note, our Q2 corporate expenses were partially offset by roughly $20 million of onetime income items, primarily a VAT-like tax credit in Brazil. So that provided about $0.01 of nonrecurring EPS benefit this quarter. Our capital allocation priorities remain the same, reinvesting in our business while maintaining a healthy balance sheet and then returning cash to shareholders. During the second quarter of 2026, we paid our annual dividend totaling $126 million and repurchased $36 million worth of CNH stock at an average price of about $10.31 per share. Before we dive into our guidance, let's take a look at the expected tariff impact on our margins as we have a change recently in the way Section 232 will be applied to some of our products. Under this updated rule, tariffs on certain categories of equipment have been reduced to 15% from 25%. In our Agriculture business, that brings down the expected 2026 tariff cost impact to about 170 basis points. For Construction, we now forecast about a 470 basis point impact. As we've previously outlined, Construction is more heavily impacted than Agriculture given its higher exposure to imported finished equipment and higher percentage of sales in North America. It's important to remind everyone that we have not passed all the tariff impacts on to our customers. Even with this temporary relief of Section 232 rates, it is still a net drag on our margins. And we won't see all the benefit of this reduction drop to the bottom line either as there have been other recent cost impacts, notably higher transportation costs due to the shipping lane disruptions. But certainly, this reduction in tariff rates is a welcome benefit. We are reviewing the recent Section 301 tariffs for forced labor that went into effect 10 days ago. At this point, we think the impact of CNH will be minimal, but there are still ongoing Section 301 investigations on excess capacity. We have not included any factors for that or any potential impacts from the nonrenewal of the USMCA in this forecast. We will provide an update if there are material changes. At these levels, we expect Q3 2026 tariffs to be about flat year-over-year, whereas Q4 tariffs should actually be a little lower year-over-year. On a run rate basis, the tariffs will be a little lower in 2027 as we get the full year benefit of reduced Section 232 rates. With that, let me address IEEPA-related tariff recoveries, which are also not included in the numbers shown on this page. In the second quarter, we received $5 million of refunds as part of the Phase 1 claims process. Now that Phase 2 is open, we are in the process of filing approximately $135 million in claims. We are accounting for the refunds as gain contingencies and will, therefore, recognize them when they are received. As the timing of the refund receipt is uncertain, they are not included in the guidance that we will review in a moment. In addition to the $135 million in Phase 2 claims, we estimate to have about $15 million in claims to be filed in Phase 3 whenever that becomes available to us. When these refunds are received, we do intend to redeploy a meaningful portion by reinvesting them in discrete projects benefiting the business. This could include accelerating investments in precision technology, upgrades to our manufacturing facilities or providing limited term incentives to accelerate inventory destocking among other areas. Let's now look together at our agriculture industry outlook for 2026. We have made tweaks to some of the numbers, mainly based on how we have seen the first half develop. Overall, it is net lower with reductions in small tractors in North America and in combines in EMEA and South America. That still puts us at about 80% of mid-cycle when balancing all the products together. With our order slots now nearly full for the year, we are moving our net sales guidance to the high end of our previous range. We now forecast sales to be about flat year-over-year. That includes our unchanged assumptions for favorable currency translation of 2% and positive pricing of 1.5% to 2%, offset by lower unit shipments as a result of the industry demand. Agriculture production hours will be down slightly year-over-year. The updated Section 232 tariff rates are providing some cost relief, but this has been largely offset by increased freight and transportation costs as well as continued market challenges in South America. Despite this, we are confident in our ongoing cost reduction programs and manufacturing performance. As a result, we are narrowing our EBIT margin guidance to the high end of the previous range now at 5% to 5.5%. In Construction, we have also fine-tuned our industry forecast across the regions based on first half trends and market conditions. And overall, we are more positive in overall outlook, especially for heavy equipment. With the healthy construction markets and our own success in the field, we are raising our net sales guidance up to 5% to 10% year-over-year, including about 2% of favorable currency translation and 1% to 1% of pricing. EBIT margin is now forecast to be between 1.8% and 2.3% as the improvement in sales levels and tariff rates positively impact our profitability. Production hours in the Construction segment will be up to support the year-over-year increase in sales. Putting the 2 segments together, we now forecast 2026 Industrial net sales to be flat to up 2% year-over-year, with Industrial adjusted EBIT margin between 3.2% and 3.8%. Industrial free cash flow is now forecasted to be between $200 million and $400 million on slightly improved sales and lower working capital assumptions. Adjusted EPS is now narrowed to between $0.41 and $0.46. As a reminder, the guidance does not include IEEPA tariff refunds beyond the $5 million received in Q2, but it also doesn't include any cost for the discrete or one-off projects that we intend to cover with those refunds. To help you with your modeling, I'll provide some additional considerations for the third quarter. In Agriculture, we expect Q3 net sales and EBIT margin to be about flat on a year-over-year basis as we keep an eye on how market conditions evolve in South America. In Construction, we expect continued strength in North America, driving global sales up in the low to mid-teens year-over-year, similar to what you saw in Q2. EBIT margin will improve year-over-year to a low to mid-single-digit range. Like for Agriculture, South America is a watch point for construction. Financial Services net income in Q3 is expected to improve year-over-year off a low base. Recall that we recorded a lot of risk reserves in Q3 of 2023, and so we are lapping that easier comparison now in 2026. But we will be watching market dynamics as the quarter progresses. With that, I'll turn it back to Gerrit. Gerrit Marx: Thank you, Jim. And let me finish up with some thoughts about the rest of the year. We're closely watching model year 2027 order intake as one of the clearest indicators of where the agriculture cycle is headed. So far, order intake would indicate a flattish 2027 industry retail demand, but we are still early in the process. We do not have enough information yet to assess whether the constructive signs we are seeing in dealer inventories, fleet age and used equipment pricing will translate into higher equipment demand even at modest levels. We're also tracking the macroeconomic factors that continue to shape the agriculture industry cycle, particularly farmer profitability, commodity prices, interest rates and input costs. Farm economics remain pressured in several regions. So our outlook will continue to reflect both the encouraging cycle indicators and the realities of customers' current cash flow environment. We will remain -- we will maintain continued production discipline as we work towards leaner channel inventories by year-end. This remains an important part of protecting pricing, supporting our dealers and ensuring that production levels will be aligned with underlying retail demand as we move into 2027. Producing in line with retail demand in 2027 means we have an automatic tailwind next year since we are currently underproducing to the 2026 demand by about 4%. We expect our margin improvement efforts to be supported by the work underway in quality, sourcing and operational efficiency. These initiatives are helping offset some of the current cost and tariff pressures while strengthening the foundation for better performance as markets improve. We will continue to make sustained investments in both our iron and our technology capabilities. Our goal is to bring those together in ways that improve productivity for customers, increase adoption in connected and AI-enabled solutions and further differentiate CNH over the long term. We will continue supporting multi-brand dealership consolidation across all geographies where it improves customer coverage, dealer strength and long-term network effectiveness. We believe the right dealer configuration in each market is essential to delivering better service, stronger aftermarket support and a consistent customer experience. And one final comment. We already shared with you that we have restarted our conversations with several potential partners in the construction space, exploring different collaboration models. The goal of the discussions is to find a solution that profoundly upgrades 2 things: First, our Construction segment's economies of scale, geographic reach and competitiveness across all product lines, but most notably our heavy excavators. And second, the breadth, depth and technologies of construction machines supplied to our agriculture network. We are being diligent and thorough in these discussions and considerations, and we will let you know when there is something new to report. This concludes our prepared remarks, and we can now start the Q&A session. Operator: [Operator Instructions] Your first question comes from the line of Chad Dillard with Bernstein. Charles Albert Dillard: So I just want to dig into the implied guide for the Ag business from 3Q to 4Q. It seems like there's a pretty healthy step up. So I was hoping you could give me some color on some of the moving pieces to get there. And then just kind of thinking through the exit rate, how to think about the transition into '27 with those margins. James A. Nickolas: Yes. Good question, Chad. It's Jim. So a couple of things. For the Q3 to Q4, we've got higher volumes, a chunk of it. Lower tariffs are finally -- this Q2, we've lapped. This is the first time it's -- this is the last quarter, hopefully, where we have a tough comp. So Q3 and Q4, favorable comparison from a tariff perspective versus last year. And sequentially, Q4 should have lower tariffs than Q3 of this year, thanks to the lower Section 232 rates. Pricing should be a little bit of a lift as well. And then the operational improvements that Gerrit mentioned, we expect to continue as well. So I'd say volumes and lower tariffs are the primary, followed by pricing and operational improvements coming in next. Operator: Your next question comes from the line of Steven Fisher with UBS. Steven Fisher: It's nice to see the positive Ag revision to guidance. Just wondering if you could help us reconcile that with kind of more cuts to the ag industry retail sales versus those raises. Was it sort of an underproduction dynamic? I know I think, Gerrit, you mentioned $400 million to $500 million of underproduction this year. I think that was $500 million last quarter. So maybe that was part of it, but just trying to reconcile those 2 different directions of things. James A. Nickolas: Yes. It's Jim. The underproduction will come largely in Q4 of this year. I mean the $400 million to $500 million will largely come in Q4. But that's, again, comparison versus a very significant dealer destocking that we had last year. So it's not too dissimilar from what we saw last year. So I think there's no real change there. But the guide we gave last quarter for the full year -- we had mentioned some risks to South America, Latin America. So we sort of view those were out there on the horizon and our guidance reflected that to some degree. So those risks have come to fruition. South America has weakened further. We did incorporate some of that in our previous guide. So to some degree, we anticipated that worsening, and it was already built into the guide we gave last time. So the increase we're seeing this year for the remainder of this year is a couple of factors. One, we have outperformed modestly what we guided towards in Q1 and Q2. So we're just sort of passing that on. We're baking it and building it into the full year view. And then we had that -- we did that onetime nonrecurring benefit in corporate expenses from the VAT-like taxes in Brazil. And then, of course, we do see favorable pricing and more operational improvements and then lower tariffs in Q4, also benefiting Ag. That's versus the prior guide. Operator: Your next question comes from the line of Jamie Cook with Truist Securities. Jamie Cook: I guess if you -- it sounds like next year, you feel like the ag landscape at this point is going to be flat. Construction is probably up a little. But under that scenario, can you just talk about your ability to at least keep earnings flat? I mean it sounds like we'll get some tailwinds from operational initiatives, maybe tariffs is a modest negative. It sounds like pricing should be okay. But any commentary you can frame how you think the setup is for 2027 earnings? James A. Nickolas: Yes, holding -- in your assumption where the industry is flat, a couple of things. We should have production levels that are higher because we're selling at closer to the retail level. We won't be underproducing as much, one. Two, we've been pretty successful with pricing in excess of cost even despite some of the tariffs. I think that dynamic will continue. So that should help from an earnings perspective next year. And of course, the operational improvements will continue as well. Gerrit Marx: Yes. On the operations side, Jamie, we're making very good progress on the very different ends. I mean, as I alluded to before, on the procurement side, we keep building. We have a 4 waves procurement program, of which the first 2 waves are now in full swing. Wave 1 is already delivering. Wave 2 will start to deliver next year, and then we're kicking off Wave 3 now and Wave 4 to come. So this all builds, and we feel pretty good about that trajectory. On the quality side, we have delivered on what we targeted last year, even a notch above, and we are tracking quite well this year as well to further improve on that end. So we have a lot going on, on the operations side, obviously, also in our factories where we invest and see also improvements on the operational efficiency and productivity side. So overall, the underlying cost base performs. We will have -- we plan to have increased production levels in line with retail next year, which should be then the year, which is retail flattish as we currently see it in an L-shaped recovery. And with that plus pricing, we feel confident about printing a proposal for next year that should be no less than what we do this year. Operator: Your next question comes from the line of Angel Castillo with Morgan Stanley. Angel Castillo Malpica: Sorry to belabor the point here. I guess I just wanted to continue to dive deeper into kind of the second half implications. So you've given a lot of good color on it. And if I'm doing the math correctly, I think the implied adjusted EBIT margin for the fourth quarter in Ag is double digits. So -- and if I heard you correctly, I think there's still quite a bit of underproduction in the fourth quarter. So can you just -- I guess, as we think about a flattish '27 and that exit rate, should we take that to mean that you think double-digit EBIT margins or adjusted EBIT margins is kind of the right way to think about 2027, all else equal, given, again, lack of underproduction, operating efficiencies and other factors that should bolster performance there? Or is there anything else that we're kind of missing here? James A. Nickolas: Yes. No, it's Jim. Angel, I'd say we aren't implying a double-digit EBIT margin in Q4. So that your starting point is probably a little too high, to be honest with you. The -- and what that implies for next year, I think to what we said earlier, we would expect -- of course, Q4 is our best quarter. And so you can't sort of use that as a launching pad for the entire year. But I would say it certainly points to our momentum and improvement trajectory that we've been on since our Investor Day in May of last year. The things we said we're going to do, we're doing. Frankly, we're quite happy with the success we've seen with those operational improvements. Unfortunately, they've been diverted instead of going to shareholders that accrues the benefit of the U.S. government in the form of higher tariffs. And so it hasn't dropped the bottom line like we'd hoped. But the things we said we were going to do, we're doing, and we're seeing it. Next year, assuming tariffs don't change again, that's sort of in the baseline and our price cost performance should accrue to the benefit of shareholders going forward. Operator: Your next question comes from the line of David Raso with Evercore ISI. David Raso: Can you help us a bit with where the 4% underproduction is coming, maybe help geographically and product type? And just on the fourth quarter Ag margin, just so we're clear, you have sales implied down $44 million year-over-year, but EBIT up $84 million. And we're just trying to understand how much does the tariff help year-over-year to have EBIT up $84 million? James A. Nickolas: Yes. I think the underproduction, it's mostly in North America and South America for this year, particularly Q2 through Q4. And as far as Q4, a sizable portion of the uplift is coming from lower tariff rates and some higher pricing as well. Operator: Your next question comes from the line of Tami Zakaria with JPMorgan. Tami Zakaria: Question on the corporate expense line because I think it saw a step down in 2Q because of the tax refund. How should we think about that line for the remaining 2 quarters? James A. Nickolas: Yes. I think typically, we ask people to model $55 million to $60 million per quarter. Of course, that can be quite volatile given whatever might be going on with some unique activities. So I think for now, you might want to assume that going forward. Of course, in Q4, typically, we'll adjust for variable comp up or down as needed, and that can be a bit of swing factor. But right now, that's not assumed in the guide. Operator: Your next question comes from the line of Kyle Menges with Citigroup. Kyle Menges: Great. And I appreciate some of the commentary on 2027. And I was hoping -- you've provided some good color. I was hoping just to the extent you can provide somewhat of a margin bridge for 2027, thinking about annualizing lower tariff impacts and then some of the cost savings initiatives around procurement and quality. And then it sounds like base case volume would be up a little bit and you get some price. Just how do we think about that margin bridge then based on some of those factors going from '26 to '27 in Ag? James A. Nickolas: Kyle, it's Jim. There's much as I would love to provide that to you. I can't do it just yet. We're not quite ready to talk about 2027 in detail. So stay tuned on that more to come. But I will point out, we did provide a view of 2027 impact from the tariffs in the slide deck. So we did give you some information there, but I can't give you the more detailed bridge walk just yet. Operator: Your next question comes from the line of Michael Shlisky with D.A. Davidson & Co. Michael Shlisky: I know you had some tailwinds on price and currency in the quarter for Ag. Could you share with us whether CNH gained any market share in Ag anywhere globally? Gerrit Marx: Yes. Michael, Gerrit here. We did indeed have some gains in market share. It is going across the board actually from tractors to combines, and it differs a bit by region. And as you know, in most of our regions, market is measured by retail and in some geographies by wholesale, and it is sometimes also related to us or other market participants turning their farmers from an equipment point of view. So at times, launching programs and launching sales initiatives in those territories can have here and there some impact on market shares on a quarterly basis. On a full year basis, we do look at a market share recovery across the board, all equipments in EMEA and Europe. And we do look at some targeted gains as well in North America and South America as per plan. So what we're doing right now with the dealer network consolidation, building a stronger dealer base, multi-brand and now more focused on actually competition instead of us and our 2 brands is really starting to show, and that is something that will continue over the next years as we have laid it out during our Investor Day in 2025. Operator: Your next question comes from the line of Edward Magi with BNP. Edward Magi: Industrial free cash flow was negative in the first half, and you ended up raising full year guidance. So I was wondering if you could help us understand the bridge components to get there. James A. Nickolas: Yes. I'd say Q2 was lower than Q2 last year, largely due to trade payables. We had increased production quite a bit Q2 of last year compared to Q1. So that drove the increase in payables. We didn't see that increased production this year. And so the trade payables didn't grow. That's basically the chunk of Q2 that accounts for most of the decline versus last year. But we do see that timing reversing in the second half of this year, a. And b, of course, our improved profitability is a big piece of the other area of increasing the cash flow. Operator: Your next question comes from the line of Ted Jackson with Northland. Edward Jackson: My first question is, was I hearing correctly that you saw that the European market was a little softer in the quarter than you expected? And if that's true, could you provide a little color on kind of what you see going on in Europe and maybe the ramifications for that for the remainder of the year? And then I have a follow-up on construction. James A. Nickolas: Yes. We did see a soft -- a turn to a little bit more negative sentiment in EMEA, and it was a surprise. We weren't expecting it. We had viewed EMEA as a bright spot. And again, while we had hoped inventory -- dealer destocking everywhere, and we expected it in EMEA, it actually increased demand. So that was the one area we were a little bit caught by. And I think really due to a couple of factors. One, the weather there is extremely hot, drought conditions, it's hurting crops, it's hurting sentiment, coupled with the higher input costs we're seeing from the war in Iran with fertilizer, fuel, et cetera. All those things have combined, I think, to really put a bit of a pause, some gloom over farmer sentiment in EMEA. Edward Jackson: And was it across like the region in general? Or was it like located in any particular... James A. Nickolas: I think most of Europe, I think U.K. was a bright spot for us, maybe Italy as well, but by and large, it's... Gerrit Marx: I think France and Germany have seen quite some drought, and that was -- I think in those regions. But we are pretty well spread across. So its -- we need to see how the weather turns out. I mean we have El Niño, impacting South America, not only South America, also North America and other parts of the world. We have the monsoon season that is coming in lighter than we expected as shown in prior years. So I'd say, rainfall is differently allocated this year, and we will see challenged regions with too much water, too much rain and too little. And then we have a few regions that are more or less on target. But Europe overall, it's really different when you look between the different countries. France, as I mentioned, in particular, was impacted by a drought. But we at our risk mapping, we did see that coming, and we did obviously also manage our production volumes accordingly in order to keep on the good path of depleting the inventories as well as company inventory. So overall, this didn't come as a surprise. We just consciously managed it through setting us up for a good and healthy entry to 2027. Operator: Your next question comes from the line of Tim Thein with Raymond James. Timothy Thein: I just wanted to come back, Jim, you made a couple of comments about as you're thinking about the fourth quarter, how pricing has come in, the outlook for pricing, a little better than you had been assuming? And just thinking about that in the context of what you will be a fairly sizable dealer destocking. So maybe just can you help square that? And was it a -- which obviously can sometimes weigh against that. So maybe just -- is there a specific region or segment that you become a little bit more incrementally... James A. Nickolas: Well, I think it's really a sequential Q3 to Q4, you have price -- model year '27 pricing starting to kick in. And so a comment around sequential pricing in Q4 versus Q3, that's what I was referring to. Operator: Your next question comes from the line of Daniela Costa with Goldman Sachs. Daniela Costa: I just wanted to ask regarding competition. When we look at sort of China exports of tractors, we've seen sort of a steady pickup in their own exports. Do you see them in any of your sort of main markets becoming a bit more aggressive? And how do you plan to tackle that? Gerrit Marx: Daniela, Gerrit here. Yes, we do see them here and there in -- across Africa. You find Chinese tractors, also Indian tractors from India exported. You see them as well in South America, more on the very small horsepower range actually. And across Southeast Asia, obviously, this is pretty obvious. So yes, we do see them. When you look at the competitors from India, they are more on the tractor-only play, like very small tractors driving on the high volume of the Indian market as we do. So India for us is a great success story where we have been gaining market share. We have been the fastest-growing brand in India last year. We have been so far year-to-date, the fastest-growing brand in India as well in 2026. So winning in India means that you can compete very effectively with whatever is exported from India by others. And so that works well. And the same holds true for China. So not a surprise, and we have seen them in some specific tenders and some specific situations, but not yet at a significant scale. Operator: Your next question comes from the line of Kristen Owen with Oppenheimer & Co. Kristen Owen: Two quick questions for me. First, on Brazil combines. Just any incremental color that you're seeing on the ground and any impact that we should anticipate for the FinCo in the second half now that you've taken some accruals? And then the second question, just appreciate the incremental color on the dealer consolidation story. Can you -- is there any way that you could give us a sense of how much of a drag those dealer actions have taken so far this year, just so that we can think about the overall impact that's having on the margin trajectory currently? Gerrit Marx: Kristen, on the dealer consolidation, it hasn't been a drag at all actually. When we work through our opportunities and currently with, obviously, the dealers who take charge of these, it's not a drag at all. I mean we are getting more effectively -- more effective in the regions quite quickly when we have these better aligned go-to-market stories. And for that reason, there we don't see any drag there. When you ask about Brazil combines, I mean, we're looking at the Brazilian combine market. We are looking at it quite closely and very regularly as there have been in the past in 2022 and 2023, there were some peak sales in the region that have basically led to a fairly young combine population in Brazil. And that has been aging now over the last 3 years of market decline considerably, and we are going to approach, I think, average historic fleet ages of combines, we're going to approach that probably by -- over the course of next year when largely the replacement demand is going to carry the industry. We need to see what happens with the elections. We need to see what -- when finally the farm bill that was announced in Brazil starts to pay and when that also helps us restructure some of the debt exposures in the region. But overall, I think combines are on a pretty low point in these -- in 2026 these days. And we'll see when we hit the average historic ages next year of the population, we should see that get back on a growth trajectory beyond 2027. On the FinCo, Jim? James A. Nickolas: Yes. On the FinCo, look, it's -- we think we've got adequate reserves. So nothing in our forecast implies a dramatic change there. That said, it is a concern of ours. We're keeping an eye on it. It's a risk area that we've called out before. It has not gone away. So it's something that there is watching certainly. So we'll be keeping an eye on this every quarter and updating you folks accordingly, but it's still a risk area for us, certainly. Operator: We have a follow-up question from Ted Jackson with Northland. Edward Jackson: My follow-up question was really on Construction. We spent so much time talking about Ag that it kind of gets the short end of the stick. And I guess I wanted to sort of maybe have you guys walk through with regards to how you see the outlook for 2027 given the backdrop. I mean peers although they generally took up their view of Construction for the remainder of the year. You saw some of the larger rental houses pick up their CapEx spend. And it seems to me that the market for Construction is constructive. And just maybe a little color on how you see that playing out as you roll through '26 and into '27. James A. Nickolas: Yes. So we agree with your view of the construction market. It is benefiting from heavy side -- heavy infrastructure build-out, data centers, et cetera, power generation. So we're seeing that as well. And I think it's got legs. So there's that. The industry is helping. And also, we're doing our own self-help. So we've closed Burlington. We're doing other operational improvements in our CE business. And so we're taking our own actions to sort of improve our own operations. So I think I expect things to get better next year. Tariffs also aren't a headwind. We don't think '27 that they were in '26. I mean they're not going away, but they're not growing. And again, once that stabilizes for us, we can focus on delivering higher results through new products, better pricing and lower costs. So I agree with your overall assessment that we see that happening in '27. Operator: That concludes the question-and-answer session. I will now turn the call back to Gerrit Marx. Gerrit Marx: Thank you. I would like to thank you all for joining the call today. Despite the industry conditions, this is an exciting time to be at CNH with our transformational efforts in the dealer network, our technology investments, new product launches and operational improvements. We look forward to seeing some of you at the Farm Progress Show in a few weeks, and I wish you all a happy and healthy summer. Thank you very much. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in CNH Industrial, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CNH Industrial wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. CNH Industrial (CNH) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Shares of AGCO Corp. AGCO have dipped 11% since missing its top- and bottom-line estimates on July 30. The company delivered adjusted earnings per share (EPS) of $1.43 in second-quarter 2026, missing the Zacks Consensus Estimate of $1.54 by 7.14%. The company posted adjusted EPS of $1.35 in the year-ago quarter. Including one-time items, AGCO posted an EPS of $1.08 compared with the year-ago quarter’s $4.22.Net sales declined 1% year over year to $2.61 billion and missed the consensus estimate of $2.73 billion. Excluding the favorable currency-translation impacts of 2.7%, net sales fell 3.7% year over year. AGCO Corporation price-consensus-eps-surprise-chart | AGCO Corporation Quote Gross profit decreased 1.9% year over year to $646 million. The gross margin contracted 30 basis points to 24.7%, as lower production volumes and higher input costs offset pricing and cost-management benefits.Selling, general and administrative expenses were $336 million compared with the year-ago quarter’s $326 million. Adjusted operating income fell 21.1% to $172 million. The adjusted operating margin declined 170 basis points to 6.6% due to weaker sales and factory absorption in Latin America, along with tariff-related costs. Sales in the North America segment increased 19.7% year over year to $471.5 million in the second quarter. Higher unit sales, particularly for high-horsepower tractors and hay tools, supported the top line. The reported figure missed our estimate of $439 million. The segment reported an operating loss of $24.5 million compared with the prior-year quarter’s operating loss of $25.2 million. Our projection for the segment’s operating loss was $34.6 million.Sales in the Latin America segment decreased 17.9% year over year to $271 million. We expected the segment’s net sales to be $218.5 million. The segment reported an operating loss of $21.8 million against the prior-year quarter’s operating income of $26.9 million. Our estimate for the segment's operating loss was $6.2 million. The downside was led by softer industry demand, lower sales and production volumes, and higher engineering expenses.The EME (Europe/Middle East) segment’s sales decreased 2.4% year over year to $1.73 billion. The reported figure missed our estimate of $1.91 billion. The segment’s operating income was $260.2 million compared with $261.3 million in the year-ago quarter. Our estimate for the segment's operating income was $7.5 million. Sales declines across most European markets were partly offset by growth in Germany and the U.K. Cost-optimization efforts and positive pricing supported the operating performance. We predicted EME’s operating income to be $301 million.Sales in the Asia/Pacific/Africa segment edged down 1% year over year to $134.5 million. We expected the segment’s sales to be $144 million. The segment reported an operating income of $10.3 million compared with the prior-year quarter’s $9.4 million. Lower sales across several Asian and African markets were partly offset by higher sales in Australia. Our projection for the segment’s operating profit was $6.1 million. AGCO Corp ended June with cash and cash equivalents of $573 million, down from $862 million at the end of 2025. Inventories increased to $3.01 billion from $2.71 billion, reflecting the seasonal working-capital build and higher first-half production.Net cash used in operating activities totaled $245 million in the first six months of 2026 against a cash inflow of $153.5 million in the year-ago period. The company completed $345 million in share repurchases during the quarter and maintained its quarterly dividend of 30 cents per share. Due to the weaker-than-expected industry conditions, the company lowered its 2026 outlook. It expects adjusted earnings of $5.50-$5.75 per share compared with the prior stated $6. AGCO expects 2026 net sales between $10.1 billion and $10.2 billion, while the adjusted operating margin is expected to be 7.5%.Capital expenditure is forecast between $300 million and $325 million. The company targets a free cash flow conversion of 75-100% of adjusted net income. For the third quarter, AGCO projects sales of $2.3-$2.4 billion and adjusted earnings of 85-90 cents per share. AGCO Corp currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The company’s shares have lost 8.4% in the past year against the industry’s growth of 16.5%. Image Source: Zacks Investment Research Lindsay Corporation LNN reported third-quarter fiscal 2026 earnings of $1.53 per share, beating the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line declined 14% year over year.Lindsay’s sales totaled $160.8 million, down 5% year over year. The top line missed the Zacks Consensus Estimate of $169 million by 5.15%. Irrigation softness outweighed infrastructure growth. The quarter reflected persistent demand challenges in North America and Brazil.CNH Industrial N.V. CNH reported second-quarter 2026 adjusted EPS of 13 cents, which declined from 17 cents in the prior-year quarter. The figure, however, surpassed the Zacks Consensus Estimate of 11 cents.In the second quarter, CNH Industrial’s net sales grew 2% from the year-ago level to $4.80 billion and topped the Zacks Consensus Estimate of $4.76 billion. Deere & Company DE is expected to release third-quarter fiscal 2026 results on Aug. 20.The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $4.85 for the fiscal third quarter, implying growth of 2.1% from the year-ago reported figure. The consensus estimate for Deere’s total sales is pinned at $10.8 billion, indicating a year-over-year increase of 4.6% Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AGCO Corporation (AGCO) : Free Stock Analysis Report Lindsay Corporation (LNN) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report CNH Industrial N.V. (CNH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes current performance to a difficult agricultural equipment cycle, characterized by pressured farmer profitability and high input costs. The company is utilizing this downturn to drive structural improvements in quality, sourcing, and manufacturing efficiency to strengthen the foundation for future recovery. Strategic focus remains on five pillars: product leadership, iron and tech integration, commercial excellence, operational excellence, and quality as a mindset. Dealer network consolidation is accelerating, with flagship transactions in Texas, Wisconsin, Germany, and Brazil aimed at creating stronger, multi-brand dealerships. The strategic sourcing program is on track to deliver a 100 to 150 basis point margin improvement by 2030 through rigorous supplier evaluation and material cost reductions. Market recovery is viewed through five indicators: normalization of new and used inventories, price gap convergence, sustainable commodity prices, and consecutive profitable seasons. While inventory and pricing indicators are improving, the lack of sustained farmer profitability suggests an L-shaped recovery rather than a sharp rebound. Baseline expectations for 2027 assume a flattish retail demand environment, with replacement needs serving as the primary market driver. Management expects a production tailwind in 2027 as they move from underproducing by 4% in 2026 to aligning production with retail demand. Guidance for 2026 Industrial net sales has been narrowed to flat to up 2%, reflecting outperformance in the first half and full order slots for the year. The company anticipates receiving approximately $135 million in Phase 2 IEEPA tariff refunds, which will be reinvested into precision tech and manufacturing upgrades. Ongoing discussions with potential partners in the construction space aim to upgrade economies of scale and heavy excavator competitiveness. Section 232 tariff rates on certain equipment categories were reduced from 25% to 15%, providing some margin relief for the second half of 2026. Despite lower tariff rates, higher transportation costs due to shipping lane disruptions act as a partial offset to bottom-line benefits. South America remains a significant risk factor, with persistent economic difficulties driving higher delinquency rates and lower equipment demand. A one-time VAT-like tax credit in Brazil provided a $20 million benefit to corporate expenses, contributing approximately $0.01 to EPS this quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects a healthy step-up in Q4 driven by higher volumes, lower sequential tariff rates, and the impact of model year 2027 pricing. Operational improvements and cost-saving initiatives are expected to continue gaining momentum into the year-end. Management clarified that while Q4 is typically the strongest quarter, it should not be used as a direct launching pad for the full year 2027 margin profile. The transition to 2027 will benefit from a lack of underproduction and the full-year effect of reduced Section 232 tariff rates. EMEA saw a surprise turn toward negative sentiment due to extreme heat, drought conditions in France and Germany, and high input costs. Despite softer retail demand, the company is managing production volumes to ensure healthy inventory levels entering 2027. Management noted increased exports from China and India in the low-horsepower tractor segment, particularly in Africa and Southeast Asia. CNH is successfully competing by being the fastest-growing brand in India, which validates their ability to match low-cost export competition.

CNH Industrial (CNH) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +18.18%. A quarter ago, it was expected that this truck, tractor and bus maker would post earnings of $0.01 per share when it actually produced earnings of $0.01, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates two times. CNH, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $4.8 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.78%. This compares to year-ago revenues of $4.71 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. CNH shares have added about 11.2% since the beginning of the year versus the S&P 500's gain of 9.4%. While CNH has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for CNH was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.12 on $4.25 billion in revenues for the coming quarter and $0.41 on $17.75 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Farm Equipment is currently in the top 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Deere (DE), is yet to report results for the quarter ended July 2026. The results are expected to be released on August 20. This agricultural equipment manufacturer is expected to post quarterly earnings of $4.85 per share in its upcoming report, which represents a year-over-year change of +2.1%. The consensus EPS estimate for the quarter has been revised 0.5% higher over the last 30 days to the current level. Deere's revenues are expected to be $10.8 billion, up 4.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CNH Industrial N.V. (CNH) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in CNH Industrial N.V.? Here are five stocks we like better. Second-quarter results were broadly in line with expectations: Revenue rose 2% to $4.8 billion and adjusted EPS was $0.13, but industrial free cash flow declined to $150 million as EBIT weakened and working capital increased. Agriculture profitability deteriorated despite stable sales: Agriculture adjusted EBIT margin fell to 5.2% from 8.1% due to unfavorable product mix and tariff costs. CNH expects agriculture sales to be approximately flat for the year and plans to reduce dealer inventories by another $400 million to $500 million. Tariffs remain a major headwind, particularly in construction: Construction sales increased 12%, but its EBIT margin dropped to 1.7% as tariffs weighed on profitability. CNH expects lower Section 232 rates to help, while maintaining a cautious outlook for a broadly flat 2027 agriculture market. 4 Catalysts Poised to Push Caterpillar Stock to Record Highs CNH Industrial (NYSE:CNH) reported second-quarter results that management said were generally in line with expectations as the agricultural equipment market remained pressured by weak farm profitability and cautious customer spending on large capital purchases. Chief Executive Officer Gerrit Marx said the company is managing through a difficult point in the agriculture cycle while using the downturn to improve product quality, sourcing and manufacturing efficiency. He said CNH is also investing in connected and artificial intelligence-enabled technology across its equipment base and dealer network. → Lost in Space: Why Aerospace Valuations Are Plummeting Right Now The 8 best agricultural ETFs to consider for your portfolio Consolidated revenue totaled $4.8 billion in the second quarter, rising 2% from a year earlier, including about 2% of favorable currency effects. Adjusted net income was $161 million, or $0.13 per share, while industrial free cash flow was $150 million, down year over year because of lower EBIT and higher working-capital investment. Agriculture segment sales were approximately $3.3 billion, up 1% from the prior-year period, including a 2% favorable currency translation effect. Sales increased 10% in North America and 1% in Europe, the Middle East and Africa, while South American sales fell 27%. → MarketBeat Week in Review – 07/27- 07/31 Best Agriculture Stocks to Buy in 2020 Agriculture gross margin declined to 19.7% from 21.8% a year earlier. Chief Financial Officer Jim Nickolas attributed the decline partly to unfavorable product mix, including weaker sales of large tractors relative to smaller tractors in North America and lower combine sales relative to tractors in South America. Agriculture adjusted EBIT margin fell to 5.2% from 8.1% in the 2025 second quarter. Nickolas said unfavorable mix and tariff costs outweighed the benefits of pricing and cost-saving measures. He added that price-cost performance was positive in the quarter and is expected to remain positive for the full year. → GE HealthCare Stock Climbs on Vital Diagnostics Demand Dealer inventories were slightly lower sequentially, with reductions in North and South America partly offset by higher inventories in EMEA, where retail demand was weaker than expected. CNH is targeting an additional $400 million to $500 million reduction in dealer inventory by year-end, with the reduction weighted toward the fourth quarter. Management lowered its industry outlook for certain agriculture categories, citing reduced expectations for small tractors in North America and combines in EMEA and South America. However, with order slots nearly full for the year, CNH raised its agriculture sales outlook to approximately flat year over year, at the high end of its prior guidance range. It narrowed agriculture adjusted EBIT margin guidance to 5% to 5.5%. Construction segment net sales rose 12% year over year to $866 million, led by North American volume growth. The performance included shipments delayed from the first quarter because of a supplier quality issue, Nickolas said. EMEA posted modest volume growth supported by currency, while South America remained challenging. Construction gross margin declined to 11.9% from 15.7% a year earlier, primarily due to tariffs. Adjusted EBIT margin was 1.7%, compared with 4.5% in the prior-year quarter. CNH raised its full-year construction sales outlook to growth of 5% to 10%, including roughly 2% of favorable currency and about 1% of pricing. Construction EBIT margin is expected to be between 1.8% and 2.3%. Management said it sees healthy construction markets supported by infrastructure development, data centers and power-generation activity. The company also continues discussions with potential construction partners to improve economies of scale, geographic reach and competitiveness, particularly in heavy excavators, Marx said. CNH said revised Section 232 tariff rules reduced tariffs on certain equipment categories to 15% from 25%. The company now expects tariffs to reduce 2026 agriculture margins by about 170 basis points and construction margins by about 470 basis points. Construction has greater exposure to imported finished equipment and North American sales, Nickolas said. The company said the lower tariff rates are beneficial but will not fully flow to profitability because CNH has not passed all tariff costs through to customers and because transportation costs have increased amid shipping-lane disruptions. CNH received $5 million in tariff refunds during the second quarter and is filing approximately $135 million in Phase 2 claims, with a further estimated $15 million expected to be filed in a future Phase 3 process. Those potential refunds were not included in guidance because the timing of receipt is uncertain. Management said it intends to reinvest a meaningful portion of any refunds in areas including precision technology, manufacturing upgrades and inventory-reduction incentives. During the quarter, CNH paid $126 million in annual dividends and repurchased $36 million of stock at an average price of approximately $10.31 per share. Marx said CNH’s baseline outlook calls for an “L-shaped” recovery in agriculture, with 2027 retail demand broadly flat and replacement demand carrying much of the market. He said dealer inventories, used equipment inventories, fleet age and the spread between new and used equipment values are becoming more constructive. However, commodity prices remain at or below break-even levels for many growers, while fuel, fertilizer and transportation costs remain elevated. Those conditions continue to limit farm profitability and farmer confidence, according to Marx. CNH expects production to align more closely with retail demand in 2027. Marx said the company is underproducing relative to 2026 demand by about 4%, which should create a production tailwind next year if retail markets remain flat. He and Nickolas said cost reductions, sourcing initiatives, quality improvements and pricing discipline could support earnings even in a flat demand environment. The company forecast 2026 industrial net sales ranging from flat to up 2%, industrial adjusted EBIT margin of 3.2% to 3.8%, industrial free cash flow of $200 million to $400 million, and adjusted earnings per share of $0.41 to $0.46. CNH Industrial N.V. is a global capital goods company specializing in the design, production and sale of agricultural and construction equipment, commercial vehicles and powertrain solutions. The firm operates through five core brands—Case IH and New Holland for agricultural machinery, Case and New Holland for construction equipment, Iveco for light, medium and heavy commercial vehicles, and FPT Industrial for engines and drivetrain components. Established in 2013 through the combination of Fiat Industrial and CNH Global, the company draws on a rich heritage of innovation dating back to pioneering landmarks in farm and construction machinery from the 19th century. The company's product portfolio encompasses tractors, combines, balers, excavators, backhoe loaders, trucks, vans and bespoke engines for marine, automotive and industrial markets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "CNH Industrial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Consolidated Revenues: $4.8 billion, up 2% year over year, including about 2% positive currency impacts. Agriculture Net Sales: Approximately $3.3 billion, up 1% year over year, including 2% positive currency translation. Construction Net Sales: $866 million, up 12% year over year, driven by higher sales in North America. Agriculture Gross Margin: 19.7%, down from 21.8% a year ago. Construction Gross Margin: 11.9%, down from 15.7% a year ago. Industrial Adjusted EBIT: $167 million, reflecting lower industry demand and the continued impact of tariffs. Agriculture Adjusted EBIT Margin: 5.2%, down from 8.1% in Q2 2025. Construction Adjusted EBIT Margin: 1.7%, down from 4.5% in Q2 2025. Adjusted Net Income: $161 million, with adjusted EPS at $0.13. Free Cash Flow from Industrial Activities: $150 million, a year-over-year decline due to lower EBIT and higher working capital investments. Financial Services Segment Net Income: $71 million, down versus 2025. Retail Originations: $2.5 billion in the second quarter. Managed Portfolio: Ended the quarter at $28 billion. Delinquency Rates: Seasonally increased to 4.4% in Q2, higher year over year. Dividend and Share Repurchases: Paid annual dividend totaling $126 million and repurchased $36 million worth of stock at an average price of about $10.31 per share. Warning! GuruFocus has detected 6 Warning Signs with CNH. Is CNH fairly valued? Test your thesis with our free DCF calculator. Release Date: August 03, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. CNH Industrial NV (NYSE:CNH) raised its full-year 2026 guidance for agricultural net sales to approximately flat year-over-year, reflecting improved pricing and operational performance. The company reported positive price/cost dynamics in the agriculture segment for the second quarter and expects this trend to continue for the full year. CNH Industrial NV (NYSE:CNH) is making significant progress in its strategic sourcing program, targeting 100-150 basis points of margin improvement by 2030, with the first wave already delivering results. The construction segment showed strong performance, with net sales up 12% year-over-year in Q2, driven by robust North American demand and the company raised its full-year construction sales guidance to 5%-10% growth. CNH Industrial NV (NYSE:CNH) is seeing encouraging signs of market recovery, including normalization of dealer inventories, aging equipment fleets, and converging new/used equipment price gaps, which could support future demand. CNH Industrial NV (NYSE:CNH) continues to face significant headwinds from tariffs, which negatively impacted margins in both agriculture and construction segments during the quarter. The agriculture industry remains in a downturn, with farm profitability pressured by commodity prices at or below breakeven levels and elevated input costs, leading to cautious farmer spending. South America, particularly Brazil, experienced a sharp decline in demand, with agriculture sales down 27% year-over-year in Q2, and the region remains a key risk area for the company. The company's financial services segment saw a decline in net income due to margin compression and higher risk costs, especially in Brazil, with delinquency rates rising year-over-year. CNH Industrial NV (NYSE:CNH) expects an L-shaped recovery with 2027 retail demand remaining broadly flat, indicating a prolonged period of subdued market conditions. Q: Can you help us understand the bridge to the improved full-year guidance, given the negative free cash flow in the first half and the cuts to the ag industry retail forecast?A: CFO Jim Nickolas explained that the underproduction of $400 million to $500 million will largely occur in Q4, which is a comparison against significant dealer destocking last year. The guidance increase reflects modest outperformance in Q1 and Q2, a one-time nonrecurring benefit from a VAT-like tax credit in Brazil, favorable pricing, operational improvements, and lower tariffs in Q4. The prior guidance had already anticipated some weakening in South America. Q: What are the moving pieces behind the implied sequential step-up in Ag margins from Q3 to Q4, and how should we think about the exit rate into 2027?A: CFO Jim Nickolas stated that the Q3 to Q4 improvement is driven by higher volumes, lower tariffs (as Q2 was the last tough comparison and Q4 benefits from reduced Section 232 rates), a slight lift from pricing, and continued operational improvements. CEO Gerrit Marx added that the company is confident in its trajectory, with procurement program waves delivering and quality improvements on track, positioning 2027 earnings to be no less than 2026. Q: Given the flattish 2027 outlook, can you frame the setup for 2027 earnings and your ability to keep earnings flat?A: CFO Jim Nickolas noted that with a flat industry, production levels should be higher as the company won't be underproducing as much. He expects the successful price-in-excess-of-cost dynamic to continue, along with operational improvements. CEO Gerrit Marx added that the underlying cost base is performing well, and with increased production aligned with retail demand plus pricing, they feel confident about delivering 2027 results no less than this year. Q: Does the implied double-digit EBIT margin in Q4 for Ag suggest that's the right run-rate for 2027?A: CFO Jim Nickolas clarified that the company is not implying a double-digit EBIT margin in Q4, noting that Q4 is typically the best quarter and shouldn't be used as a launching pad for the full year. However, he emphasized the momentum and improvement trajectory since the Investor Day, with operational improvements being partially offset by tariffs. Assuming tariffs don't change, price/cost performance should accrue to shareholders' benefit going forward. Q: Can you provide a margin bridge for 2027, considering lower tariffs, cost savings, and volume assumptions?A: CFO Jim Nickolas declined to provide a detailed 2027 margin bridge, stating the company is not ready to discuss 2027 in detail. He pointed to the slide deck, which provides a view of the 2027 tariff impact, but deferred further specifics to a later date. Q: Where is the 4% underproduction coming from geographically and by product type, and how much of the Q4 EBIT uplift is from tariffs?A: CEO Gerrit Marx stated that the underproduction is mostly in North America and South America for this year, particularly from Q2 through Q4. He also confirmed that a sizable portion of the Q4 uplift is coming from lower tariff rates. Q: Can you share where CNH is gaining market share in Ag globally?A: CEO Gerrit Marx confirmed gains in market share across tractors and combines, varying by region. On a full-year basis, the company expects market share recovery across all equipment in EMEA and Europe, with targeted gains in North America and South America. He attributed this to the dealer network consolidation strategy, which is creating a stronger, multi-brand dealer base more focused on competition. Q: Did you see the European market softer than expected, and what are the ramifications for the rest of the year?A: CFO Jim Nickolas confirmed a turn to more negative sentiment in EMEA, which was a surprise. He cited extreme heat, drought conditions, and higher input costs from the war in Iran as factors. CEO Gerrit Marx added that France and Germany saw significant drawdowns, but the company managed production volumes accordingly to maintain the path of depleting dealer and company inventories, setting up for a healthy entry into 2027. Q: Do you see Chinese tractor exports becoming more aggressive in your main markets, and how do you plan to tackle that?A: CEO Gerrit Marx acknowledged seeing Chinese and Indian tractors in Africa, South America (in the small horsepower range), and Southeast Asia. He highlighted CNH's success in India, where they are the fastest-growing brand, which demonstrates their ability to compete effectively against exports from India and China. He noted that while they appear in specific tenders, they are not yet at a significant scale. Q: Can you provide color on the Brazil combines market and any impact on FinCo, and how much of a drag have dealer consolidation actions been?A: CEO Gerrit Marx stated that dealer consolidation has not been a drag at all, with the company becoming more effective in regions quickly. On Brazil combines, he noted that peak sales in 2022-2023 led to a young combine population that has been aging, and the industry should approach average historic fleet ages next year, which should support replacement demand. CFO Jim Nickolas added that FinCo has adequate reserves, but Brazil remains a risk area to watch. Q: How do you see the construction outlook for 2027 given the constructive market backdrop?A: CEO Gerrit Marx agreed with the constructive view, citing benefits from heavy infrastructure build-out, data centers, and power generation. He noted the company is taking self-help actions, including closing Burlington and other operational improvements in the RCE business. He expects things to get better next year, with tariffs stabilizing and the company focusing on delivering higher results through new products, better pricing, and lower costs. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

For the quarter ended June 2026, CNH Industrial (CNH) reported revenue of $4.8 billion, up 2% over the same period last year. EPS came in at $0.13, compared to $0.17 in the year-ago quarter. The reported revenue represents a surprise of +0.78% over the Zacks Consensus Estimate of $4.77 billion. With the consensus EPS estimate being $0.11, the EPS surprise was +18.18%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how CNH performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Agriculture Sales- North America: $1.23 billion compared to the $1.07 billion average estimate based on four analysts. The reported number represents a change of +9.9% year over year. Agriculture Sales- Europe, Middle East and Africa: $1.36 billion versus $1.37 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +0.8% change. Agriculture Sales- South America: $346 million versus the four-analyst average estimate of $456.03 million. The reported number represents a year-over-year change of -27%. Construction Sales- Asia Pacific: $43 million versus $49.34 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -12.2% change. Construction Sales- North America: $468 million versus the four-analyst average estimate of $461.4 million. The reported number represents a year-over-year change of +23.5%. Revenues- Net Sales: $4.14 billion versus $4.08 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +3% change. Revenues- Finance, interest and other income: $660 million versus the five-analyst average estimate of $660.5 million. The reported number represents a year-over-year change of -4.4%. Revenues- Agriculture: $3.28 billion compared to the $3.25 billion average estimate based on four analysts. The reported number represents a change of +0.9% year over year. Revenues- Construction: $866 million compared to the $856.7 million average estimate based on four analysts. The reported number represents a change of +12% year over year. Revenues- Financial Services: $656 million versus the four-analyst average estimate of $667.5 million. The reported number represents a year-over-year change of -4.2%. Revenues- Total Industrial Activities: $4.17 billion versus $4.1 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +2.6% change. Revenues- Eliminations and other: $-20 million versus $2.72 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -500% change. View all Key Company Metrics for CNH here>>> Shares of CNH have returned -4.4% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CNH Industrial N.V. (CNH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research