Why Navistar's Shares Crashed Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of truck maker Navistar International (NYSE: NAV  ) fell 10% today after the company updated guidance for the fiscal third quarter.

So what: The company said that fiscal-third-quarter revenue would likely be $2.8 billion to $3.0 billion and the company would have a pre-tax loss of $105 million to $145 million. The problem is that analysts had expected revenue of $3.5 billion and a profit of $0.09 per share.

Now what: Navistar has missed estimates by a wide margin in the last two quarter and, despite rapidly falling estimates, will likely miss again this quarter. The company is accelerating delivery of ICT+, the company's next-generation engine, but it seems to be having a negative impact on current results. Until the company's strategy change is proven, I see no reason to buy the stock, so I'll sit out the discount today.

Interested in more info on Navistar? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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