The 10-second takeaway
For the quarter ended Oct. 31 (Q4), Navistar International beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share contracted to a loss.
Margins shrank across the board.
Navistar International booked revenue of $3.28 billion. The 14 analysts polled by S&P Capital IQ looked for revenue of $3.18 billion on the same basis. GAAP reported sales were 24% lower than the prior-year quarter's $4.32 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 -$9.83. The 15 earnings estimates compiled by S&P Capital IQ predicted -$1.08 per share. GAAP EPS were -$40.07 for Q4 versus $3.48 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 5.9%, 1,410 basis points worse than the prior-year quarter. Operating margin was -11.3%, 1,850 basis points worse than the prior-year quarter. Net margin was -84.4%, 9,030 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.81 billion. On the bottom line, the average EPS estimate is -$1.60.
Next year's average estimate for revenue is $12.96 billion. The average EPS estimate is -$2.05.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 193 members out of 229 rating the stock outperform, and 36 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give Navistar International a green thumbs-up, and nine 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 $27.38.
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