Earnings preview: How will Q3 turn out for Navistar?

Navistar International Corporation (NYSE: NAV) is slated to report third quarter 2019 earnings results on Wednesday, September 4, before the market opens. Analysts expect the company to report earnings of $1.19 per share on revenue of $2.88 billion. In the trailing four quarters, the company has topped earnings estimates three times.

Navistar’s topline results are likely to benefit from strength in its core trucks and buses market. The company’s growth in market share is likely to drive revenue growth and aid in margin expansion. However, higher costs might put pressure on the bottom line numbers in the third quarter. Overall, the sentiment around the third quarter results appear to be positive.

The company plans to invest approx. $125 million in its manufacturing facilities in Alabama over the next three years. This is to produce next-generation big-bore powertrains developed with its global alliance partner TRATON.

Earlier this month, Navistar announced that its service partnership agreement with Love’s and Speedco has gone fully operational, launching the largest service network in North America for commercial vehicles.

Also see: Navistar Q2 2019 Earnings Report

In the second quarter of 2019, Navistar beat revenue and earnings estimates, with a 24% growth in revenue to $3 billion and a 57% growth in adjusted EPS to $1.05.

For full-year 2019, Navistar expects revenues to be $11.25 billion to $11.75 billion. Industry retail deliveries of Class 6-8 trucks and buses in the US and Canada are forecast to be 425,000 to 445,000 units, with Class 8 retail deliveries of 290,000 to 310,000 units. 

Shares of Navistar have fallen over 10% year-to-date and 27% in the past one month.

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