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Market Overview

Navistar International's Earnings Outlook

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Navistar International (NYSE:NAV) will be releasing its next round of earnings this Thursday, December 17. For all of the relevant information, here is your guide for Thursday's Q4 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see Navistar International reporting earnings of $0.23 per share on sales of $2.02 billion. In the same quarter last year, Navistar International announced EPS of $1.14 on revenue of $2.78 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 79.82% decline in the company's EPS figure. Revenue would be down 27.34% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate -0.05 -0.41 -0.19 0.97
EPS Actual -0.08 -0.10 -0.33 1.14
Revenue Estimate 1.88 B 1.87 B 1.81 B 2.80 B
Revenue Actual 1.68 B 1.93 B 1.84 B 2.78 B

Stock Performance

Shares of Navistar International were trading at $44.2 as of December 15. Over the last 52-week period, shares are up 50.24%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Navistar International is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: Earnings