Navistar International's Earnings: A Preview

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering Navistar International modeled for quarterly EPS of $0.72 on revenue of $2.30 billion. In the same quarter last year, Navistar International reported a loss per share of $0.1 on sales of $1.93 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.

If the company were to report earnings in line when it publishes results Tuesday, quarterly profit would be up 820.0%. Sales would be up 19.48% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020
EPS Estimate 0.05 0.23 -0.05 -0.41
EPS Actual 0.05 0.61 -0.08 -0.10
Revenue Estimate 1.95 B 2.02 B 1.88 B 1.87 B
Revenue Actual 1.81 B 2.06 B 1.68 B 1.93 B

eps graph

Stock Performance

Shares of Navistar International were trading at $44.41 as of June 04. Over the last 52-week period, shares are up 55.22%. Given that these returns are generally positive, long-term shareholders should be content 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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