Navistar Shares Surge After Strong Q4 Earnings & Raised Guidance


Navistar International Corp., (NYSE: NAV)

Navistar shares surged on Tuesday after reporting better-than-expected earnings and revenue for its fiscal fourth quarter. The company also posted solid full-year earnings and revenue that topped analyst estimates.

Revenue during the quarter increased 28%, while full-year revenue climbed 20% thanks to strong growth in all of its four business segments.

Navistar also issued upbeat guidance for fiscal 2019, sending its shares up 13% in the afternoon trading. Shares of the company have dropped 44% so far this year, while the S&P 500 has fallen 4.8%.

NAV Earnings & Outlook

Navistar reported adjusted earnings of $188 million, or $1.89 per share up from $135 million or $1.36 per share a year earlier. Revenue increased 28% to $3.32 billion from $2.60 billion in the year ago period. Analyst polled by FactSet had predicted earnings per share of $1.73 on sales of $3.21 billion.

Navistar posted net income of $340 million, or $3.41 a share for fiscal 2018 compared with net income of $30 million, or $0.32 per share in fiscal 2017. Wall Street had expected earnings of $3.22 per share. Full-year revenue rose 20% to $10.25 billion from $8.6 billion last year.

Looking ahead, Navistar expects full-year revenue to be in the range of $10.75 billion to $11.25 billion. Analyst on average estimate earnings of 13 cents a share on sales of $2.16 billion for the first quarter and earnings of $3.75 on revenue of $10.86 billion for the full year.

Navistar CEO Comments

Navistar Chief Executive Troy Clarke stated, “2018 was a very strong year for the industry, and a breakout year for Navistar. We were the only truck OEM to grow Class 8 share during the year. With the industry’s newest product line-up, superior quality and a strong focus on customer uptime, we expect to gain market share in 2019 for the third year in a row.”

“While we expect 2019 to be another strong year for Navistar and the industry, it’s important to recognize that Navistar as an investment is much more than just a cycle play. As our ongoing improvements demonstrate, the company also has strong opportunities to benefit by recapturing market share, growing parts revenue, improving margins, generating free cash flow and further de-risking the balance sheet,” Clarke added.

Company Profile

Navistar International Corp. is a holding company, which engages in the manufacture of military truck, proprietary diesel engines, school and commercial buses, and service parts for trucks and diesel engines. It also offers retail, wholesale, and lease financing services for trucks and parts. It operates through the following segments: Truck, Parts, Global Operations, and Financial Services.

Navistar International Corporation was founded in 1902 and is headquartered in Lisle, Illinois. It competes with Oshkosh Corp and Rev Group Inc. – CNN Money