The 10-second takeaway
For the quarter ended April 30 (Q2), Navistar International whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly. Non-GAAP loss per share grew. GAAP loss per share grew.
Margins dropped across the board.
Navistar International tallied revenue of $2.53 billion. The eight analysts polled by S&P Capital IQ hoped for sales of $2.92 billion on the same basis. GAAP reported sales were 23% lower than the prior-year quarter's $3.30 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$4.39. The 15 earnings estimates compiled by S&P Capital IQ anticipated -$1.18 per share. Non-GAAP EPS were -$4.39 for Q2 compared to -$1.99 per share for the prior-year quarter. GAAP EPS were -$4.65 for Q2 versus -$2.50 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 6.5%, 360 basis points worse than the prior-year quarter. Operating margin was -9.9%, 490 basis points worse than the prior-year quarter. Net margin was -14.8%, 960 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.00 billion. On the bottom line, the average EPS estimate is -$1.30.
Next year's average estimate for revenue is $11.46 billion. The average EPS estimate is -$6.49.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 183 members out of 220 rating the stock outperform, and 37 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Navistar International a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Navistar International is hold, with an average price target of $33.44.
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