Navistar swings to profit that beats expectations
Navistar International Corp. reported Wednesday a fiscal third-quarter net profit of $37 million, or 38 cents a share, after a loss of $34 million, or 42 cents a share, in the same period a year ago. The FactSet consensus for earnings per share was 33 cents. The trucks and engine maker said revenue rose to $2.21 billion from $2.09 billion. The FactSet consensus for GAAP sales was $2.18 billion. Truck segment sales rose 10% to $1.5 billion, above the FactSet consensus of $1.44 billion. The company maintained its 2017 outlook for revenue to be "similar" to 2016, and said it still expects retail deliveries of Class 6-8 trucks and buses in the U.S. and Canada to be in the range of 305,000 units to 335,000 units. "We returned to profitability this quarter thanks to strong operational performance across the board, highlighted by a 15-percent increase in chargeouts and solid market share gains amid flat industry conditions, and strengthening margins," said Chief Executive Troy Clarke. The stock, which was inactive in premarket trade, has climbed 13% over the past three months, while the S&P 500 has gained 1.2%.
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