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Share price of Navistar International Corporation increased 5.8% to $31.8 on Dec 21, after the company announced a raised fiscal 2017 guidance for earnings before interest taxes depreciation and amortization (EBITDA). The company reported fourth-quarter fiscal 2016 (ended Oct 31, 2016) loss from continuing operations of 28 cents per share, as against an adjusted net profit of 36 cents recorded in the year-ago quarter. The Zacks Consensus Estimate for earnings was 24 cents per share.
On a reported basis, Navistar recorded a net loss from continuing operations of $34 million or 42 cents per share, narrower than a loss of $50 million or 61 cents in the prior-year quarter.
Navistar’s revenues fell 17% year over year to $2.06 billion in the quarter, missing the Zacks Consensus Estimate of $2.18 billion. The decline resulted from lower volumes in the company's core U.S. and Canadian markets for Class 6-8 trucks and buses.
Fiscal 2016 Results
Navistar reported an adjusted loss from continuing operations of $62.1 million or 76 cents per share in fiscal 2016, compared with a loss of $49 million or 60 cents in fiscal 2015. Loss per share was wider than the Zacks Consensus Estimate of a loss of 43 cents. On a reported basis, Navistar reported a net loss from continuing operations of $97 million or $1.19 per share in fiscal 2016, compared with a loss of $184 million or $2.25 in fiscal 2015.
Revenues dropped 9.8% to $8.1 billion from $10.1 billion in fiscal 2015. The figure marginally missed the Zacks Consensus Estimate of $8.2 billion.
Revenues at Navistar’s Truck segment decreased 19.9% year over year to $1.4 billion. The segment recorded a loss from continuing operations of $61 million, considerably narrower than a loss of $36 million in the prior-year quarter. The wider loss was due to increased used truck losses and a mix shift to units with lower margins in core markets. However, the segment gained from lower adjustments to pre-existing warranties and the non-recurrence of restructuring charges recorded in the prior year from a voluntary separation program.
Revenues at Navistar’s Parts segment decreased 5.5% year over year to $613 million in the reported quarter. The segment registered a profit of $162 million, lower than $163 million recorded in the year-ago quarter. The decreased profit was a result of the impact of the Blue Diamond Parts, LLC joint venture, partially offset by margin improvements and cost-reduction mechanisms.
Revenues at Navistar’s Global Operations segment plunged 24.3% to $87 million. The segment recorded a loss of $2 million in the quarter as compared with a loss of $27 million a year ago. Revenues at Navistar’s Financial Services segment were $58 million, in line with year-ago figure. The segment registered a profit of $23 million, down from $26 million in the fourth quarter of fiscal 2015. The year-over-year decrease was due to higher interest expense, partially offset by cost-reduction initiatives.
Financial Position
Navistar had cash and cash equivalents of $804 million as of Oct 31, 2016, down from $912 million as of Oct 31, 2015. As of Oct 31, 2016, notes payable and long-term debt was $4.9 billion compared with $5.3 billion as of Oct 31, 2015.
Net cash flow operations totaled $267 million in fiscal 2016 versus $46 million in the year-ago period. Capital expenditure totaled $116 million, up from $115 million in the year-ago period.
Guidance
Navistar projects Class 6–8 retail deliveries in the U.S. and Canada in the range of 305,000–335,000 units for fiscal 2017.
Revenues for fiscal 2017 are expected to be similar to fiscal 2016 level. Adjusted EBITDA is anticipated to be higher than last year. Manufacturing cash at the end of fiscal 2017, including capital injection from Volkswagen Truck & Bus, is projected at around $800 million.
Navistar manufactures and sells commercial trucks, mid-range diesel engines, buses, military vehicles, and chassis for motor homes and step-vans. It also provides service parts for trucks and trailers.
Price Performance
So far this year, Navistar’s shares have gained 259.73% while the Zacks categorized Auto/Truck Original Equipment industry saw a 5.28% increase. The rally was driven by benefits from the alliance with Volkswagen, launch of new products, cost-saving initiatives and increased production at its plants.
Zacks Rank & Other Key Picks
Navistar currently carries a Zacks Rank #2 (Buy).
Other favorably ranked companies in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) , America's Car-Mart Inc. (CRMT - Free Report) and Rush Enterprises, Inc. (RUSHA - Free Report) .
Allison Transmission has a long-term expected growth rate of 11%.
America's Car-Mart has a long-term expected growth rate of 45.5%.
Rush Enterprises has a long-term expected growth rate of 15%.
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Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>
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Navistar (NAV) Posts Loss in Q4 Earnings Season
Share price of Navistar International Corporation increased 5.8% to $31.8 on Dec 21, after the company announced a raised fiscal 2017 guidance for earnings before interest taxes depreciation and amortization (EBITDA). The company reported fourth-quarter fiscal 2016 (ended Oct 31, 2016) loss from continuing operations of 28 cents per share, as against an adjusted net profit of 36 cents recorded in the year-ago quarter. The Zacks Consensus Estimate for earnings was 24 cents per share.
On a reported basis, Navistar recorded a net loss from continuing operations of $34 million or 42 cents per share, narrower than a loss of $50 million or 61 cents in the prior-year quarter.
Navistar’s revenues fell 17% year over year to $2.06 billion in the quarter, missing the Zacks Consensus Estimate of $2.18 billion. The decline resulted from lower volumes in the company's core U.S. and Canadian markets for Class 6-8 trucks and buses.
Fiscal 2016 Results
Navistar reported an adjusted loss from continuing operations of $62.1 million or 76 cents per share in fiscal 2016, compared with a loss of $49 million or 60 cents in fiscal 2015. Loss per share was wider than the Zacks Consensus Estimate of a loss of 43 cents. On a reported basis, Navistar reported a net loss from continuing operations of $97 million or $1.19 per share in fiscal 2016, compared with a loss of $184 million or $2.25 in fiscal 2015.
Revenues dropped 9.8% to $8.1 billion from $10.1 billion in fiscal 2015. The figure marginally missed the Zacks Consensus Estimate of $8.2 billion.
NAVISTAR INTL Price, Consensus and EPS Surprise
NAVISTAR INTL Price, Consensus and EPS Surprise | NAVISTAR INTL Quote
Segment Details
Revenues at Navistar’s Truck segment decreased 19.9% year over year to $1.4 billion. The segment recorded a loss from continuing operations of $61 million, considerably narrower than a loss of $36 million in the prior-year quarter. The wider loss was due to increased used truck losses and a mix shift to units with lower margins in core markets. However, the segment gained from lower adjustments to pre-existing warranties and the non-recurrence of restructuring charges recorded in the prior year from a voluntary separation program.
Revenues at Navistar’s Parts segment decreased 5.5% year over year to $613 million in the reported quarter. The segment registered a profit of $162 million, lower than $163 million recorded in the year-ago quarter. The decreased profit was a result of the impact of the Blue Diamond Parts, LLC joint venture, partially offset by margin improvements and cost-reduction mechanisms.
Revenues at Navistar’s Global Operations segment plunged 24.3% to $87 million. The segment recorded a loss of $2 million in the quarter as compared with a loss of $27 million a year ago.
Revenues at Navistar’s Financial Services segment were $58 million, in line with year-ago figure. The segment registered a profit of $23 million, down from $26 million in the fourth quarter of fiscal 2015. The year-over-year decrease was due to higher interest expense, partially offset by cost-reduction initiatives.
Financial Position
Navistar had cash and cash equivalents of $804 million as of Oct 31, 2016, down from $912 million as of Oct 31, 2015. As of Oct 31, 2016, notes payable and long-term debt was $4.9 billion compared with $5.3 billion as of Oct 31, 2015.
Net cash flow operations totaled $267 million in fiscal 2016 versus $46 million in the year-ago period. Capital expenditure totaled $116 million, up from $115 million in the year-ago period.
Guidance
Navistar projects Class 6–8 retail deliveries in the U.S. and Canada in the range of 305,000–335,000 units for fiscal 2017.
Revenues for fiscal 2017 are expected to be similar to fiscal 2016 level. Adjusted EBITDA is anticipated to be higher than last year. Manufacturing cash at the end of fiscal 2017, including capital injection from Volkswagen Truck & Bus, is projected at around $800 million.
Navistar manufactures and sells commercial trucks, mid-range diesel engines, buses, military vehicles, and chassis for motor homes and step-vans. It also provides service parts for trucks and trailers.
Price Performance
So far this year, Navistar’s shares have gained 259.73% while the Zacks categorized Auto/Truck Original Equipment industry saw a 5.28% increase. The rally was driven by benefits from the alliance with Volkswagen, launch of new products, cost-saving initiatives and increased production at its plants.
Zacks Rank & Other Key Picks
Navistar currently carries a Zacks Rank #2 (Buy).
Other favorably ranked companies in the auto space include Allison Transmission Holdings, Inc. (ALSN - Free Report) , America's Car-Mart Inc. (CRMT - Free Report) and Rush Enterprises, Inc. (RUSHA - Free Report) .
All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has a long-term expected growth rate of 11%.
America's Car-Mart has a long-term expected growth rate of 45.5%.
Rush Enterprises has a long-term expected growth rate of 15%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>