The 10-second takeaway
For the quarter ended Oct. 31 (Q4), Navistar International missed on revenues but beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and earnings per share grew significantly.
Margins increased across the board.
Navistar International chalked up revenue of $4.3 billion. The 13 analysts polled by S&P Capital IQ anticipated sales of $4.5 billion. Sales were 28% higher than the prior-year quarter's $3.4 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $3.37. The 15 earnings estimates compiled by S&P Capital IQ forecast $3.10 per share on the same basis. GAAP EPS of $3.48 for Q4 were much higher than the prior-year quarter's $0.54 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 20.6%, 330 basis points better than the prior-year quarter. Operating margin was 7.8%, 430 basis points better than the prior-year quarter. Net margin was 5.9%, 470 basis points better than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $3.3 billion. On the bottom line, the average EPS estimate is $0.85 (There are seven revenue estimates and seven EPS estimates.)
For the full year ending 2012, the average estimate for revenue is $15.7 billion. The average EPS estimate is $6.42. (There are 17 revenue estimates and 17 EPS estimates.)
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 160 members out of 196 rating the stock outperform, and 36 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Navistar International a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Navistar International is outperform, with an average price target of $58.
- Add Navistar International to My Watchlist.