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Navistar (NAV) Q2 Loss Narrower Than Expected, Revenues Down
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Navistar International Corporation reported second-quarter fiscal 2020 loss of 10 cents per share, narrower than the Zacks Consensus Estimate of a loss of 72 cents.
Higher-than-expected sales from the Truck and Financial Services segments resulted in the narrower-than-anticipated loss. Total sales and revenues from the Truck and Financial Services segments came in at $1,389 million and $64 million, higher than the consensus mark of $1,373 million and $47 million, respectively. However, the bottom line tanked from the year-ago earnings of $1.06 a share. Dismal year-over-year contribution across all segments resulted in the underperformance.
The truck manufacturer generated $1,925 million in revenues, which surpassed the Zacks Consensus Estimate of $1,746 million. However, revenues marked a 35.8% year-over-year plunge on lower volumes in the company's core (class 6-8 trucks and buses in the United States and Canada) market due to the coronavirus outbreak.
Navistar scrapped the fiscal 2020 guidance as it expects that the pandemic’s impact will strain the company’s operations in the upcoming period.
Navistar International Corporation Price, Consensus and EPS Surprise
The Truck segment’s total net sales came in at $1,389 million in the reported quarter, plummeting 39.5% year on year. The segment witnessed a net loss of $51 million, narrower than the net loss of $74 million reported in the year-ago quarter. The year-over-year sales decline primarily resulted from lower volumes in the company's core markets due to the coronavirus pandemic, dismal Mexico volumes and a decrease in GM-branded units.
The Parts segment net sales summed $443 million, down 23% year over year. The segment’s profit was $103 million, down 28% on a year-over-year basis. The year-over-year sales decline resulted from lower North America volumes due to the COVID-19 crisis as well asa decrease in Blue Diamond Parts (BDP) sales.
Net sales in the company’s Global Operations totaled $51 million, significantly down from the year-ago level of $87 million. The segment reported net loss of $13 million as against the net profit of $3 million recorded in second-quarter fiscal 2019. Lackluster volumes in South American operations, along with depreciation of the Brazilian real against the U.S. dollar, resulted in the year-on-year sales decline.
Net sales in Navistar’s Financial Services segment came in at $64 million, down from $78 million reported in the year-ago quarter. The segment recorded profit of $24 million compared with the year-ago quarter’s $32 million. The year-over-year sales decline resulted from lower average finance receivables and reduction in finance fees.
Financial Position
Navistar had cash and cash equivalents of $60 million as of Apr 30, 2020, down from $1,370 billion as of Oct 31, 2019. At the end of the fiscal second quarter, long-term debt was $4,859 million, up from $4,317 million as of Oct 31, 2019.
Zacks Rank & Stocks to Consider
Navistar currently carries a Zacks Rank #3 (Hold). Shares of the company have depreciated 1.2%, year to date, compared with the industry’s decline of 7.9%.
Shares of Tesla have appreciated 111.7%, year to date, compared with its industry’s rise of 34.7%.
Shares of Halfords have rallied 13.7%, year to date, as against its industry’s decline of 7.9%.
Shares of Niu have gained 37.9%, year to date, as against the industry’s decline of 8%.
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.
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Navistar (NAV) Q2 Loss Narrower Than Expected, Revenues Down
Navistar International Corporation reported second-quarter fiscal 2020 loss of 10 cents per share, narrower than the Zacks Consensus Estimate of a loss of 72 cents.
Higher-than-expected sales from the Truck and Financial Services segments resulted in the narrower-than-anticipated loss. Total sales and revenues from the Truck and Financial Services segments came in at $1,389 million and $64 million, higher than the consensus mark of $1,373 million and $47 million, respectively. However, the bottom line tanked from the year-ago earnings of $1.06 a share. Dismal year-over-year contribution across all segments resulted in the underperformance.
The truck manufacturer generated $1,925 million in revenues, which surpassed the Zacks Consensus Estimate of $1,746 million. However, revenues marked a 35.8% year-over-year plunge on lower volumes in the company's core (class 6-8 trucks and buses in the United States and Canada) market due to the coronavirus outbreak.
Navistar scrapped the fiscal 2020 guidance as it expects that the pandemic’s impact will strain the company’s operations in the upcoming period.
Navistar International Corporation Price, Consensus and EPS Surprise
Navistar International Corporation price-consensus-eps-surprise-chart | Navistar International Corporation Quote
Segmental Performance
The Truck segment’s total net sales came in at $1,389 million in the reported quarter, plummeting 39.5% year on year. The segment witnessed a net loss of $51 million, narrower than the net loss of $74 million reported in the year-ago quarter. The year-over-year sales decline primarily resulted from lower volumes in the company's core markets due to the coronavirus pandemic, dismal Mexico volumes and a decrease in GM-branded units.
The Parts segment net sales summed $443 million, down 23% year over year. The segment’s profit was $103 million, down 28% on a year-over-year basis. The year-over-year sales decline resulted from lower North America volumes due to the COVID-19 crisis as well asa decrease in Blue Diamond Parts (BDP) sales.
Net sales in the company’s Global Operations totaled $51 million, significantly down from the year-ago level of $87 million. The segment reported net loss of $13 million as against the net profit of $3 million recorded in second-quarter fiscal 2019. Lackluster volumes in South American operations, along with depreciation of the Brazilian real against the U.S. dollar, resulted in the year-on-year sales decline.
Net sales in Navistar’s Financial Services segment came in at $64 million, down from $78 million reported in the year-ago quarter. The segment recorded profit of $24 million compared with the year-ago quarter’s $32 million. The year-over-year sales decline resulted from lower average finance receivables and reduction in finance fees.
Financial Position
Navistar had cash and cash equivalents of $60 million as of Apr 30, 2020, down from $1,370 billion as of Oct 31, 2019. At the end of the fiscal second quarter, long-term debt was $4,859 million, up from $4,317 million as of Oct 31, 2019.
Zacks Rank & Stocks to Consider
Navistar currently carries a Zacks Rank #3 (Hold). Shares of the company have depreciated 1.2%, year to date, compared with the industry’s decline of 7.9%.
Some better-ranked stocks in the same sector are Tesla, Inc. (TSLA - Free Report) , Halfords Group Plc (HLFDY - Free Report) and Niu Technologies (NIU - Free Report) . While Tesla and Halfords sport a Zacks Rank of 1 (Strong Buy), Niu carries a Zack Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Tesla have appreciated 111.7%, year to date, compared with its industry’s rise of 34.7%.
Shares of Halfords have rallied 13.7%, year to date, as against its industry’s decline of 7.9%.
Shares of Niu have gained 37.9%, year to date, as against the industry’s decline of 8%.
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.
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