Navistar International (NAV 46.71, +4.52) has spiked 10.7% after reporting fourth quarter results and issuing guidance for fiscal year 2018.
The manufacturer of commercial trucks, busses, and engines reported fourth quarter earnings of $1.36 per share, which may not be comparable to estimates. Navistar's revenue grew 25.9% year-over-year to $2.60 billion, exceeding market expectations.
Revenue growth was driven by 31.0% growth in the company's core volumes. This includes Class 6-8 trucks and busses in the U.S. and Canada.
Navistar's Chairman, President, and CEO Troy Clarke noted that the company returned to profitability during the fiscal year and increased its market share 1.5 points. The improvement took place even though the company's partnership with Volkswagen Truck & Bus is still in its early stages.
The company's Truck segment generated a profit of $112 million, up from a loss of $61 million reported one year ago. Higher volume in core markets and a decrease in used truck losses fueled the improvement.
The Parts segment generated a profit of $157 million, down from a profit of $162 million one year ago. The gradual runoff of the Blue Diamond Parts business was partially offset by double digit revenue growth from Fleetrite.
The Global Operations segment recorded a profit of $1 million after losing $2 million one year ago.
Financial Services profit hit $26 million, up from a profit of $23 million one year ago. Higher receivable balances and a lower provision for losses in the company's Mexico portfolio contributed to the improvement.
Looking ahead, the company expects that revenue for fiscal year 2018 will be between $9.00 billion and $9.50 billion, which puts the midpoint of the company's guidance range ahead of market expectations. The company expects that retail deliveries of Class 6-8 trucks and busses in the U.S. and Canada will be between 345,000 and 375,000.