LONDON, UK / ACCESSWIRE / January 11, 2018 / Active-Investors.com has just released a free earnings report on Navistar International Corp. (NYSE: NAV). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=NAV. Navistar reported its fourth quarter and fiscal 2017 operating results on December 19, 2017. The truck and engine maker outperformed top- and bottom-line expectations and provided guidance for the upcoming quarter. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Navistar International most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For the quarter ended October 31, 2017, Navistar's revenues surged 26% to $2.60 billion compared to revenue of $2.06 billion in Q4 FY16. Revenue growth was largely driven by a 31% increase in the Company's Core (Class 6-8 trucks and buses in the United States and Canada) volumes. Navistar's revenue numbers exceeded analysts' expectations of $2.32 billion.
Navistar's revenue for fiscal year 2017 was up 6% to $8.6 billion compared to $8.1 billion in FY16.
For Q4 FY17, Navistar posted net income of $135 million, or $1.36 per diluted share, compared to Q4 FY16 net loss of $34 million, or $0.42 per diluted share. The Company's earnings, adjusted for restructuring costs, were $1.43 per share, ahead of Wall Street's expectations of $0.65 per share.
For FY17, Navistar reported net income of $30 million, or $0.32 per diluted share, versus a net loss of $97 million, or $1.19 per diluted share, for FY16.
Navistar International's Segment Results
For the second straight quarter, all of Navistar's reporting segments were profitable. During Q4 FY17, the Company's Truck sales surged 33% to $1.9 billion on a y-o-y basis, driven by higher volumes across the portfolio, reflecting strong industry conditions and market share growth. Higher sales volumes and improved used truck performance resulted in segment profitability of $112 million.
For Q4 FY17, Navistar's Parts business, quarterly revenues and profits were comparable to last year, reflecting 25% growth from the Company's private label brands. The segment's revenues grew to over $100 million as engine volumes grew. The segment reported its second straight profitable quarter with income of $157 million, which included a charge of $6 million for restructuring in Brazil. In the Financial Services segment, higher truck sales in Mexico led to more financing opportunities that drove segment results. Revenues in the Financial Services segment increased to $63 million and profits grew to $26 million.
During Q4 FY17, the used truck operation set a record by selling over 3,300 trucks in the reported quarter. As a result, gross inventory levels fell by 26% to $206 million. Reserves also fell, reflecting higher sales. This was partially offset by $9 million of reserve additions, reflecting industry-related used truck pricing pressures, compared to $63 million of reserve additions in Q4 FY16.
Cash Matters
Navistar finished Q4 FY17 with $1.1 billion in consolidated cash, cash equivalents, and marketable securities including $1.0 billion in manufacturing cash, cash equivalents, and marketable securities.
Navistar refinanced its manufacturing debt in November 2017, which improved its debt profile and provided greater financial flexibility. The transaction yielded $200 million of additional liquidity and extended the Company's debt maturities by four years. Additionally, it will save approximately $25 million in annualized interest in 2018 and $34 million in 2019, following the repayment of convertible debt that comes due in 2018.
Outlook
For fiscal year 2018, Navistar is forecasting Retail deliveries of Class 6-8 trucks and buses in the United States and Canada to be in the range of 345,000 units to 375,000 units. The Company is expecting revenues to be between $9 billion and $9.5 billion, and adjusted EBITDA to be in the band of $675 million and $725 million. Navistar's year-end manufacturing cash is expected to be approximately $1 billion.
Stock Performance Snapshot
January 10, 2018 - At Wednesday's closing bell, Navistar International's stock slightly rose 0.16%, ending the trading session at $43.93.
Volume traded for the day: 576.89 thousand shares.
Stock performance in the last month - up 10.10%; previous three-month period - up 1.27%; past twelve-month period - up 43.42%; and year-to-date - up 2.45%
After yesterday's close, Navistar International's market cap was at $4.40 billion.
Price to Earnings (P/E) ratio was at 488.11.
The stock is part of the Consumer Goods sector, categorized under the Trucks & Other Vehicles industry.
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