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Navistar International Corporation reported earnings per share of 11 cents in first-quarter fiscal 2019 (ended Jan 31, 2019), in line with the Zacks Consensus Estimate. The company reported loss of 74 cents per share in the prior-year quarter.
During the reported quarter, Navistar recorded net income of $11 million against net loss of $73 million in the prior-year quarter.
The company generated $2.43 billion in revenues, which beat the Zacks Consensus Estimate of $2.23 billion. The figure also marks 28% rise from the first quarter of fiscal 2018. This year-over-year improvement was primarily driven by a 50% increase in sales volume of Navistar’s Class 6-8 trucks and buses in the United States as well as Canada.
Segment Details
During the reported quarter, net sales and revenues at Navistar’s Truck segment were $1.8 billion, up 44% from the prior-year quarter figure. The segment recorded profit of $90 million against loss of $7 million in the year-ago quarter. This improvement was due to higher volume in the company’s core markets, partly offset by higher material and freight costs and the impact of sales of a majority interest in Navistar Defense.
Net sales and revenues at Navistar’s Parts segment were $548 million, down 4% from the same period of the last fiscal year. The segment’s profit was $144 million, up 5% on a year-over-year basis. Results were aided by higher margins and lower inter-company access fees, partly offset by lower BDP volume and higher freight-related expenses.
Net sales and revenues at the company’s Global Operations declined slightly to $73 million. Its profit was $6 million against loss of $7 million recorded in the first quarter of fiscal 2018. Results were aided by higher volume and cost-reduction benefits.
Net sales and revenues at Navistar’s Financial Services segment rose to $74 million. It recorded profit of $31 million, up 55% year over year. The segment’s profit improved due to higher interest margin from improved funding strategies and income from an inter-company loan. However, this rise was offset by higher depreciation expenses on operating leases.
Financial Position
Navistar had cash and cash equivalents of $1.2 billion as of Jan 31, 2019, down from $1.3 billion as of Oct 31, 2018. At the end of Jan 31, 2019, long-term debt was $4.6 billion, almost in line with the figure as of Oct 31, 2018. During the reported quarter, capital expenditure totaled $44 million, up from $30 million recorded in first-quarter fiscal 2018.
Fiscal 2019 Guidance
The company reiterated its fiscal 2019 guidance.
Navistar projects industry retail deliveries of Class 6-8 trucks and buses in the United States and Canada to be between 395,000 and 425,000 units in fiscal 2019. Class 8 retail deliveries are anticipated to be 265,000-295,000 units.
Further, the company’s revenues for fiscal 2019 are expected to be $10.75-$11.25 billion while adjusted EBITDA is anticipated to be $850-$900 million.
Price Performance
Over the past three months, Navistar’s stock has gained 24%, outperforming 13.4% increase recorded by the industry it belongs to.
Zacks Rank & Stocks to Consider
Navistar currently carries a Zacks Rank #3 (Hold).
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Oshkosh has an expected long-term growth rate of 11.3%. Over the past six months, shares of the company have surged 9%.
General Motors has an expected long-term growth rate of 8.5%. Over the past three months, shares of the company have risen 9.5%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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Navistar (NAV) Q1 Earnings Meet Estimates, Revenues Beat
Navistar International Corporation reported earnings per share of 11 cents in first-quarter fiscal 2019 (ended Jan 31, 2019), in line with the Zacks Consensus Estimate. The company reported loss of 74 cents per share in the prior-year quarter.
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During the reported quarter, Navistar recorded net income of $11 million against net loss of $73 million in the prior-year quarter.
The company generated $2.43 billion in revenues, which beat the Zacks Consensus Estimate of $2.23 billion. The figure also marks 28% rise from the first quarter of fiscal 2018. This year-over-year improvement was primarily driven by a 50% increase in sales volume of Navistar’s Class 6-8 trucks and buses in the United States as well as Canada.
Segment Details
During the reported quarter, net sales and revenues at Navistar’s Truck segment were $1.8 billion, up 44% from the prior-year quarter figure. The segment recorded profit of $90 million against loss of $7 million in the year-ago quarter. This improvement was due to higher volume in the company’s core markets, partly offset by higher material and freight costs and the impact of sales of a majority interest in Navistar Defense.
Net sales and revenues at Navistar’s Parts segment were $548 million, down 4% from the same period of the last fiscal year. The segment’s profit was $144 million, up 5% on a year-over-year basis. Results were aided by higher margins and lower inter-company access fees, partly offset by lower BDP volume and higher freight-related expenses.
Net sales and revenues at the company’s Global Operations declined slightly to $73 million. Its profit was $6 million against loss of $7 million recorded in the first quarter of fiscal 2018. Results were aided by higher volume and cost-reduction benefits.
Net sales and revenues at Navistar’s Financial Services segment rose to $74 million. It recorded profit of $31 million, up 55% year over year. The segment’s profit improved due to higher interest margin from improved funding strategies and income from an inter-company loan. However, this rise was offset by higher depreciation expenses on operating leases.
Financial Position
Navistar had cash and cash equivalents of $1.2 billion as of Jan 31, 2019, down from $1.3 billion as of Oct 31, 2018. At the end of Jan 31, 2019, long-term debt was $4.6 billion, almost in line with the figure as of Oct 31, 2018.
During the reported quarter, capital expenditure totaled $44 million, up from $30 million recorded in first-quarter fiscal 2018.
Fiscal 2019 Guidance
The company reiterated its fiscal 2019 guidance.
Navistar projects industry retail deliveries of Class 6-8 trucks and buses in the United States and Canada to be between 395,000 and 425,000 units in fiscal 2019. Class 8 retail deliveries are anticipated to be 265,000-295,000 units.
Further, the company’s revenues for fiscal 2019 are expected to be $10.75-$11.25 billion while adjusted EBITDA is anticipated to be $850-$900 million.
Price Performance
Over the past three months, Navistar’s stock has gained 24%, outperforming 13.4% increase recorded by the industry it belongs to.
Zacks Rank & Stocks to Consider
Navistar currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space are Ferrari N.V. (RACE - Free Report) , Oshkosh Corp. (OSK - Free Report) and General Motors Company (GM - Free Report) . While Ferrari currently sports a Zacks Rank #1 (Strong Buy), Oshkosh and General Motors carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ferrari has an expected long-term growth rate of 18.5%. Over the past year, shares of the company have risen 3.6%.
Oshkosh has an expected long-term growth rate of 11.3%. Over the past six months, shares of the company have surged 9%.
General Motors has an expected long-term growth rate of 8.5%. Over the past three months, shares of the company have risen 9.5%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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