Navistar International Earnings: Everything You Must Know Now

Navistar International Corp. (NYSE:NAV) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Navistar International Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-2.94 in the quarter versus EPS of $-0.20 in the year-earlier quarter.

Revenue: Decreased 13.8% to $2.86 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Navistar International Corp. reported adjusted EPS loss of $2.94 per share. By that measure, the company missed the mean analyst estimate of $-1.30. It missed the average revenue estimate of $2.92 billion.

Quoting Management: “We were pleased with our strong cash performance in the quarter. We also continued to make solid progress on key elements of our Drive to Deliver turnaround plan, especially the on-time launches of our new Class 8 product offerings, which drove Navistar’s order share up to more than 20 percent in the quarter, compared to 12 percent in the second quarter. We’re encouraged by the growing customer acceptance of our new products,” said Troy A. Clarke, Navistar’s president and chief executive officer. “At the same time, we clearly need to accelerate progress with our financial results, and we are already implementing additional cost reduction and business improvement actions to counter our near-term volume challenges. This includes resizing our company to match our current business environment.”

Key Stats (on next page)…

Revenue increased 13.26% from $2.53 billion in the previous quarter. EPS increased to $-2.94 in the quarter versus EPS of $-4.39 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.08 to a loss $0.43. For the current year, the average estimate has moved down from a loss of $2.63 to a loss of $7.64 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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