Navistar International Earnings: Yikes, Shareholders are Not Happy with This

On top of dropping to a loss in the fourth quarter, Navistar International Corporation (NYSE:NAV) also came in short of analyst estimates. 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: Reported a loss of $2.77 billion ($40.13 per diluted share) in the quarter. Navistar International Corporation had a net income of $255 million or $3.48 per share in the year-earlier quarter. These results include a non-cash tax deferment of $2 billion, or $28.59 per share, the comany said in a statement.

Revenue: Fell 24.1% to $3.28 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Navistar International Corporation fell short of the mean analyst estimate of a loss of $1.08 per share. It fell short of the average revenue estimate of $4.46 billion.

Quoting Management: “We continue to make significant progress on our turnaround and the complexity of this quarter’s results is reflective of the actions necessary during this time of transition,” said Lewis B. Campbell, Navistar chairman and chief executive officer. “The team has delivered numerous successes, including exceeding our cash guidance, launching the ProStar with the ISX 15-liter ahead of schedule and moving forward with several opportunities identified during our ROIC-focused business reviews.”

Key Stats:

The company has now missed analyst estimates for the last four quarters. It fell short by 24 cents in the third quarter, by $2.64 in the second quarter, and by $1.83 in the first quarter.

Revenue has fallen in the past two quarters. In the third quarter, revenue declined 6.2% to $3.32 billion from the year-earlier quarter.

Last quarter, the company reported a net loss that marked a turn from the previous quarter’s profit. The company booked a profit of $172 million, or $2.50 per share, in the second quarter.

The company’s cost of sales slipped to $3.15 billion, a dip of 79.4% from a year ago. Last quarter, cost of sales was 96.1% of revenue versus 79.4% a year earlier.

Looking Forward: The outlook for the company’s performance in the upcoming quarter is increasingly favorable. Over the past ninety days, the average estimate for the first quarter of the next fiscal year has risen from a loss $1.25 per share to a profit of $1.12. Down from a loss of $4.08 per share ninety days ago, the average estimate for the fiscal year is now a loss of $4.14.

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