Navistar International Corp Earnings: Beats Wall Street

Navistar International Corporation (NYSE:NAV) posted lower net income in the third quarter compared with a year-earlier period. 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 Corporation Earnings Cheat Sheet

Results: Net income for Navistar International Corporation fell to $84 million ($1.22 per share) vs. $1.4 billion ($18.24 per share) a year earlier. This is a decline of 94% from the year-earlier quarter, which included a $1.48 billion benefit from the release of a portion of the company’s income tax valuation allowance.

Revenue: Fell 6.2% to $3.32 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Navistar International Corporation beat the mean analyst estimate of 23 cents per share. It fell short of the average revenue estimate of $4.46 billion.

Quoting Management: “Clearly we are not pleased with these results,” said Lewis B. Campbell, Navistar chairman and chief executive officer. “However, I was satisfied to learn on day one that Troy Clarke and his team were already working on a plan to deal with many of the important issues we face, most importantly restoring our core North American Truck, Engine and Parts businesses to their market leader positions. I believe we have good line of sight and a keen sense of urgency for moving forward.”

Key Stats:

The company beat estimates last quarter after falling short in the previous two quarters. In the second quarter, it missed the mark by $2.64, and in the first quarter, it came in under estimates by $1.83.

Over the last five quarters, revenue has increased 8.6% on average year-over-year. The biggest increase came in the fourth quarter of the last fiscal year, when revenue rose 28.2% from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $3.51 a share to $2.19 over the last sixty days. For the fiscal year, the average estimate has moved down from a profit of $3.99 a share to a loss of 44 cents over the last sixty days.

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

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