Navistar International Corporation reported fourth-quarter fiscal 2020 adjusted earnings of 62 cents per share, surpassing the Zacks Consensus Estimate of 23 cents. The outperformance primarily stemmed from higher-than-expected revenues from the firm’s Truck segment. Precisely, revenues from the segment came in at $1,478 million, outpacing the consensus mark of $1,278 million.
The bottom line, however, deteriorated from the year-ago profit of $1.14 per share amid lower year-over-year revenues due to the coronavirus pandemic.
The truck maker registered revenues of $2,065 million for the October-end quarter, missing the Zacks Consensus Estimate of $2,090 million. Moreover, the top line marked a 25.7% year-over-year plunge due to coronavirus-led lower demand in core markets.
During the quarter, the company announced its merger agreement with Volkswagen’s (VWAGY - Free Report) trucks arm Traton SE. This is expected to buoy the combined entity’s prospects.
Segmental Performance
The Truck segment’s total net sales came in at $1,478 million for the reported quarter, plummeting 30% year over year. The segment witnessed a net loss of $10 million against profit of $86 million reported in the year-ago quarter. This was due to lower volumes on weaker industry conditions resulting from the pandemic.
The Parts segment net sales dropped 9.3% from the year-ago quarter to $496 million. The segment’s profit was $129 million, down 19.8% on a year-over-year basis. The segment’s results were impacted by lower volumes in the United States and Canada.
Net sales in the company’s Global Operations summed $87 million, down from $93 million recorded in the year-ago quarter. Unfavorable forex translations and depressed volumes from South American operations amid temporary production halts due to the coronavirus crisis resulted in this downside. The segment reported a profit of $12 million, turning around from the year-ago quarter’s loss of $10 million that stemmed from a restructuring charge.
Net sales in Navistar’s Financial Services segment came in at $47 million, reflecting a 34% decrease from the year-ago quarter. The segment recorded a profit of $14 million compared with the year-ago quarter’s $30 million. This deterioration resulted from lower average finance receivables due to dismal volumes and reduction in finance fees on lower interest rates.
Financial Position
The Illinois-based trucking giant had cash and cash equivalents of $1,843 million as of Oct 31, 2020, higher than $1,370 million on Oct 31, 2019. At fiscal fourth quarter-end, long-term debt was $4,690 million, up from $4,317 million as of Oct 31, 2019.
Navistar currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the auto space include BRP Inc. (DOOO - Free Report) and Magna International Inc. (MGA - Free Report) , each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Zacks Names "Single Best Pick to Double"
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Navistar International Corporation reported fourth-quarter fiscal 2020 adjusted earnings of 62 cents per share, surpassing the Zacks Consensus Estimate of 23 cents. The outperformance primarily stemmed from higher-than-expected revenues from the firm’s Truck segment. Precisely, revenues from the segment came in at $1,478 million, outpacing the consensus mark of $1,278 million.
The bottom line, however, deteriorated from the year-ago profit of $1.14 per share amid lower year-over-year revenues due to the coronavirus pandemic.
The truck maker registered revenues of $2,065 million for the October-end quarter, missing the Zacks Consensus Estimate of $2,090 million. Moreover, the top line marked a 25.7% year-over-year plunge due to coronavirus-led lower demand in core markets.
During the quarter, the company announced its merger agreement with Volkswagen’s (VWAGY - Free Report) trucks arm Traton SE. This is expected to buoy the combined entity’s prospects.
Segmental Performance
The Truck segment’s total net sales came in at $1,478 million for the reported quarter, plummeting 30% year over year. The segment witnessed a net loss of $10 million against profit of $86 million reported in the year-ago quarter. This was due to lower volumes on weaker industry conditions resulting from the pandemic.
The Parts segment net sales dropped 9.3% from the year-ago quarter to $496 million. The segment’s profit was $129 million, down 19.8% on a year-over-year basis. The segment’s results were impacted by lower volumes in the United States and Canada.
Net sales in the company’s Global Operations summed $87 million, down from $93 million recorded in the year-ago quarter. Unfavorable forex translations and depressed volumes from South American operations amid temporary production halts due to the coronavirus crisis resulted in this downside. The segment reported a profit of $12 million, turning around from the year-ago quarter’s loss of $10 million that stemmed from a restructuring charge.
Net sales in Navistar’s Financial Services segment came in at $47 million, reflecting a 34% decrease from the year-ago quarter. The segment recorded a profit of $14 million compared with the year-ago quarter’s $30 million. This deterioration resulted from lower average finance receivables due to dismal volumes and reduction in finance fees on lower interest rates.
Financial Position
The Illinois-based trucking giant had cash and cash equivalents of $1,843 million as of Oct 31, 2020, higher than $1,370 million on Oct 31, 2019. At fiscal fourth quarter-end, long-term debt was $4,690 million, up from $4,317 million as of Oct 31, 2019.
Navistar currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the auto space include BRP Inc. (DOOO - Free Report) and Magna International Inc. (MGA - Free Report) , each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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