Investopedia: Navistar Gets More Than The Benefit Of The Doubt

Navistar (NYSE:NAV) has had some real problems with its still-new EGR engine platform and the company's financial performance has likewise lagged many truck and engine peers like PACCAR (Nasdaq:PCAR), Volvo (Nasdaq:VOLVY. PK), Cummins (NYSE:CMI) and MAN. Oddly enough, that does not seem to really trouble investors. While Navistar shares have indeed been quite weak this year, it hasn't been any worse than Paccar, Volvo and MAN. The decline in Navistar share value has created a potential for significant gains if management can drive better performance - but oh what an "if" that seems to be.

Little To Get Hearts Racing In The Third Quarter  
It would seem like the best thing about Navistar's third quarter is that it basically met top line estimates. Revenue growth of 10% just does not seem that exciting; revenue in the engine and parts business looked good (up 20% and 23%, respectively), but truck revenue was up just 6%. Now it's fair to note that these are difficult comps because the defense business muddies the waters, but it just doesn't seem that Navistar has the same momentum in commercial trucks as its rivals. Couple that with management decisions a while ago to end relationships with Cummins and Ford (NYSE:F), and there is certainly something here for management to answer for to shareholders.


Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2011/Navistar-Gets-More-Than-The-Benefit-Of-The-Doubt-NAV-PCAR-CMI-F-CAT-OSK-LMT0908.aspx