The 10-second takeaway
For the quarter ended July 31 (Q3), Navistar International beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Navistar International notched revenue of $3.32 billion. The 14 analysts polled by S&P Capital IQ predicted revenue of $3.00 billion on the same basis. GAAP reported sales were 6.2% lower than the prior-year quarter's $3.54 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 -$1.60. The 15 earnings estimates compiled by S&P Capital IQ predicted -$1.36 per share. GAAP EPS of $1.22 for Q3 were 93% lower than the prior-year quarter's $18.24 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.3%, 310 basis points worse than the prior-year quarter. Operating margin was -0.7%, 360 basis points worse than the prior-year quarter. Net margin was 2.5%, 3,710 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.55 billion. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $12.99 billion. The average EPS estimate is -$4.35.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 188 members out of 227 rating the stock outperform, and 39 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 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 $33.14.
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