Top 5 Consumer Companies To Watch In Right Now

Top 5 Consumer Companies To Watch In Right Now: Navistar International Corporation (NAV)

Navistar International Corporation, through its subsidiaries, manufactures and sells commercial and military trucks, buses, diesel engines, and recreational vehicles, as well as provides service parts for trucks and trailers worldwide. The company operates in four segments: Truck, Engine, Parts, and Financial Services. The Truck segment manufactures and distributes trucks and buses for the common carrier, private carrier, government, leasing, construction, energy/petroleum, military vehicles, and student and commercial transportation markets under the International and IC brands; assembles components; and produces sheet metal components, including truck cabs. This segment markets its products through its independent dealer network, and distribution and service network retail outlets comprising 784 in the United States and Canada, 86 in Mexico, and 292 internationally, as well as markets reconditioned used trucks to owner-operators and fleet buyers through its network of us ed truck centers. The Engine segment designs, manufactures, and sells diesel engines under the MaxxForce brand for use in the medium trucks, heavy trucks, and military vehicles, as well as for its IC branded school buses and other applications. The Parts segment provides customers with products required to support the company's brands, as well as offers other truck, trailer, and engine service parts. The Financial Services segment provides and manages retail, wholesale, and lease financing services for products sold by the Truck and Parts segments and their dealers. It also operates as a private-label designer and manufacturer of diesel engines for the pickup truck, van, and sport utility vehicle markets. Navistar International Corporation was founded in 1902 and is headquartered in Lisle, Illinois.

Advisors' Opinion:

[By Peter Graham]

The Q2 2014 earnings report for Navistar International Corp (NYSE: NAV), a potential peer of light, medium- and heavy-duty truck or engine makers PACCAR Inc (NASDAQ: PCAR) and Cummins Inc (NYSE: CMI), is scheduled to report earnings after the market closes on Thursday. Aside from the Navistar International Corp earnings report, it should be said that PACCAR Inc and Cummins Inc both reported Q1 2014 earnings on April 29th (PCAR reported higher revenues and net income while CMI hit a 52-week high after a beat and raised guidance). However, Navistar International Corp has lost market share since 2012 when US regulators denied approval of a redesigned diesel engine that failed to reduce green house gas levels – forcing the company to turn to rival Cummins Inc to supply engines as it develops its own catalytic reduction engines to reduce nitrogen oxide emissions.  

• [By Hrvoje Muhek]

  Calculation of NAV:

  Book Value Adjustment Adjusted Value Cash And Equivalents $698.65 100% $698.65 Accounts Receivable $11.90 102% $12.14 Inventory $186.09 100% $186.09 Prepaid Exp. $46.20 100% $46.20 Net Property, Plant & Equipment $255.60 75% $191.70 Goodwill $25.28 $896 $921.28 Other Intangibles $2.92 $2.92 Deferred Tax Assets, LT $18.30 91% $16.66 Other Long-Term Assets $4.75 100% $4.75 Total assets $1,249.69 $2,080.39 Accounts Payable $12.65 100% $12.65 Accrued Exp. $61.76 100% $61.76 Curr. Income Taxes Payable $0.77 100% $0.77 Unearned Revenue, Current $38.34 100% $38.34 Def. Tax Liability, Non-Curr. $3.98 100% $3.98 Other Non-Current Liabilities $35.52 100% $35.52 Capitalized lease obligations 0 301.12 Value of options outstanding 0 13.845 Total liabilities $153.01 $454.13 Net Asset Value (NAV) $1,096.68 $1,626.26

  *Goodwill was calculated as 2x SGA for 2013 + existing Goodwill. If anyone was to replicate Lulu's assets, they would have to invest at least two years of SG&A into marketing. This was a conservative ! estimate ! not attempting to value the brand equity.

• [By Holly LaFon]

  The IVA Worldwide Fund Class A (NAV) ("the Fund") ended the quarter on March 31, 2014 with a return of 2.41% compared to the MSCI All Country World Index ("Index") return of 1.08%. Since inception on October 1, 2008, on an annualized basis, the Fund returned 11.85% versus the Index return of 8.59% for the same period.

• [By Ben Levisohn]

  Shares of Navistar (NAV) has fallen more than 4% today after UBS cut its rating on the truck manufacturer.

  AP

  UBS analyst Steven Fisher and team explain why they downgraded Navistar:

  We see a slower ramp to improved profitability than we previously expected and we believe earnings could fall short of consensus expectations over the next couple of years. Warranty expense over the past four quarters exceeded our expectations; while we are forecasting a 2014 decline in expense, we now see that decline coming at a slower rate. NAV has also continued to lose Class 8 market share (R3M); softer pricing
  and/or incentives may be required to stem further share loss. We think NAV management is doing an admirable job cutting costs and improving its portfolio, but we believe prospects for improved profitability going forward are already reflected in current valuation. Accordingly, we downgrade shares to Neutral [from Buy].

  Shares of Navistar have dropped 4.1% to $31.89 at 2:02 p.m. today, while Oshkosh (OSK) has fallen 0.2% to $57.76 and Cummins (CMI) has gained 1.2% to $144.13.

source from Top Stocks For 2015:http://www.topstocksblog.com/top-5-consumer-companies-to-watch-in-right-now.html