Jefferies Comments on Navistar International (NAV) Ahead of Q3 Earnings, Cuts Estimates
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Price: $44.50 --0%
Rating Summary:
9 Buy, 14 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
9 Buy, 14 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is reaffirming its Buy rating and $70 price target on shares of Navistar International (NYSE: NAV) ahead of the release of its third quarter earnings.
The company is scheduled to report its third quarter results on September 7 before the opening bell.
The firm believes that margins will be negatively affected by uneven production and supplier constraints during the quarter. As a result, Jefferies cut its third quarter and 2011 EPS estimates from $1.35 and $6.00 to $1.05 and $5.70. They also continue to feel that the company has the highest level of leverage to larger truck bulds in 2012 and is maintaining its EPS estimate of $7 for 2012 to reflect that.
During a conference in which Jefferies held, management indicated that the second half of 2011 will be more back end loaded than previously forecasted. R&D is expected to be flat quarter-over-quarter and decline by $30 million in the fourth quarter. The total number of production days is also expected to increase in the fourth quarter after being flat in the third.
An analyst at Jefferies comments, "We expect that the quarter will be messier than usual and that "clean' EPS is likely to be weaker than current consensus due to the potential margin impact of supplier constraints."
For more ratings news on Navistar International click here and for the rating history of Navistar International click here.
Shares of Navistar International closed at $41.57 yesterday.
The company is scheduled to report its third quarter results on September 7 before the opening bell.
The firm believes that margins will be negatively affected by uneven production and supplier constraints during the quarter. As a result, Jefferies cut its third quarter and 2011 EPS estimates from $1.35 and $6.00 to $1.05 and $5.70. They also continue to feel that the company has the highest level of leverage to larger truck bulds in 2012 and is maintaining its EPS estimate of $7 for 2012 to reflect that.
During a conference in which Jefferies held, management indicated that the second half of 2011 will be more back end loaded than previously forecasted. R&D is expected to be flat quarter-over-quarter and decline by $30 million in the fourth quarter. The total number of production days is also expected to increase in the fourth quarter after being flat in the third.
An analyst at Jefferies comments, "We expect that the quarter will be messier than usual and that "clean' EPS is likely to be weaker than current consensus due to the potential margin impact of supplier constraints."
For more ratings news on Navistar International click here and for the rating history of Navistar International click here.
Shares of Navistar International closed at $41.57 yesterday.
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