The 10-second takeaway
For the quarter ended Jan. 31 (Q1), Navistar International missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP loss per share contracted. GAAP loss per share dropped.
Margins grew across the board.
Navistar International booked revenue of $2.64 billion. The 14 analysts polled by S&P Capital IQ anticipated a top line of $2.78 billion on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $3.05 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 -$1.40. The 15 earnings estimates compiled by S&P Capital IQ anticipated -$1.73 per share. Non-GAAP EPS were -$1.40 for Q1 versus -$2.08 per share for the prior-year quarter. GAAP EPS were -$1.53 for Q1 compared to -$2.19 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 13.3%, 250 basis points better than the prior-year quarter. Operating margin was -1.7%, 350 basis points better than the prior-year quarter. Net margin was -4.7%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.19 billion. On the bottom line, the average EPS estimate is -$0.67.
Next year's average estimate for revenue is $12.68 billion. The average EPS estimate is -$1.51.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 192 members out of 231 rating the stock outperform, and 39 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Navistar International a green thumbs-up, and 11 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 $26.27.
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