The 10-second takeaway
For the quarter ended April 30 (Q2), Navistar International missed estimates on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share shrank to a loss.
Margins contracted across the board.
Navistar International reported revenue of $3.30 billion. The 12 analysts polled by S&P Capital IQ expected to see revenue of $3.64 billion on the same basis. GAAP reported sales were 1.7% lower than the prior-year quarter's $3.36 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 -$1.99. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.66 per share. GAAP EPS were -$2.50 for Q2 against $0.93 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 10.7%, 800 basis points worse than the prior-year quarter. Operating margin was -5.2%, 930 basis points worse than the prior-year quarter. Net margin was -5.2%, 740 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.94 billion. On the bottom line, the average EPS estimate is $1.64.
Next year's average estimate for revenue is $15.33 billion. The average EPS estimate is $3.85.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 178 members out of 215 rating the stock outperform, and 37 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 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 outperform, with an average price target of $52.20.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.