Navistar Earnings Cheat Sheet: Margin Expands Boosted by Rising Revenue, Net Income Rises

Navistar International Corporation (NYSE:NAV) reported net income above Wall Street’s expectations for the fourth quarter. Navistar International produces International brand commercial and military trucks, MaxxForce brand diesel engines, IC Bus brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse brand chassis.

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Navistar International Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Navistar International Corporation rose to $255 million ($3.48 per share) vs. $44 million (61 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter.

Revenue: Rose 28% to $4.32 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: NAV reported adjusted net income of $3.37 per share. By that measure, the company beat the mean estimate of $3.20 per share. It fell short of the average revenue estimate of $4.46 billion.

Quoting Management: “We are pleased that we have finished the year strong and delivered solid fourth quarter results across all segments,” said Daniel C. Ustian, Navistar chairman, president and chief executive officer. “Not only did we deliver on 2011 commitments, we continued to invest in our strategy and set the foundation for a strong 2012.”

Key Stats:

The company beat estimates last quarter after falling short in the previous two quarters. In the third quarter, it missed the mark by 56 cents, and in the second quarter, it fell short by 13 cents.

Revenue has now gone up for three straight quarters. In the third quarter, revenue rose 9.8% to $3.54 billion while the figure rose 20.2% in the second quarter from the year earlier.

Gross margins expanded last quarter, rising 2.6 percentage points to 20.6% from the year earlier quarter. This snaps a streak of two consecutive quarters of shrinking margins.

Looking Forward: The average estimate for the first quarter of the next fiscal year is steady at 79 cents a share. The average estimate for the fiscal year is $5.10 per share, down from $5.17 ninety days ago.

Competitors to Watch: PACCAR Inc (NASDAQ:PCAR), Oshkosh Corporation (NYSE:OSK), Ford Motor Company (NYSE:F), AB Volvo (VOLVY), Spartan Motors, Inc. (NASDAQ:SPAR), Wabash National Corp. (NYSE:WNC), Caterpillar Inc. (NYSE:CAT), Cummins Inc. (NYSE:CMI), Daimler AG (DDAIF), and Toyota Motor Corp. (NYSE:TM).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)