Benzinga | Jul 30, 2021 02:46PM EDT

CNH Industrial Shares Quiet Despite Topping Q2 Earnings, Expects Solid Demand To Continue

* CNH Industrial NV (NYSE:CNHI) reported second-quarter revenue growth of 60% year-over-year to $8.91 billion, beating the consensus estimate of $7.33 billion.

* The revenue increase reflects higher volumes driven by strong industry demand and price realization.

* Segment Revenue: Agriculture $3.97 billion (+56.2% Y/Y), Construction $808 million (+92.4% Y/Y), Commercial And Specialty Vehicles $3.22 billion (+85.2% Y/Y), Powertrain $1.29 billion (+68.7% Y/Y), and Financial Services $439 million (-0.5% Y/Y).

* Adjusted EPS improved to $0.42 from $(0.07) in 2Q20, beating consensus estimates of $0.27.

* CNH Industrial generated cash from operating activities of $999 million, compared to $1.07 billion a year ago. Free cash flow of Industrial Activities of $1.0 billion

* Adjusted EBIT of Industrial Activities was $699 million, compared to the loss of $58 million in Q2 2020, and the margin was 8.2%.

* Truck order intake in Europe up 150% Y/Y, with light-duty trucks up 141%, and medium & heavy-duty trucks up 172%. Truck book-to-bill in Europe at 1.22.

* The company has cash and cash equivalents and restricted cash of $8.58 billion at the end of Q2.

* FY21 Outlook: CNH expects a Net sales increase of 24%-28% year on year, including currency translation effects. SG&A expenses lower/equal to 7.5% of net sales, Free cash flow positive in excess of $1.0 billion, and R&D expenses and capital expenditures up slightly from the previous ~ $2.0 billion.

* Price action: CNHI shares are trading higher by 0.51% at $16.72 on the last check Friday.