Post Earnings Coverage as Navistar's Net Loss Narrowed down in Q4 FY16
Upcoming AWS Coverage on Spartan Motors Post-Earnings Results
LONDON, UK / ACCESSWIRE / December 28, 2016 / Active Wall St. announces its post-earnings coverage on Navistar International Corp. (NYSE: NAV) ("Navistar"). The Company posted its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on December 20, 2016. The Lisle, Illinois-based Company's quarterly sales and revenues declined 17% y-o-y; however, net loss narrowed in the reported quarter. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Navistar International's competitors within the Trucks & Other Vehicles space, Spartan Motors, Inc. (NASDAQ: SPAR), reported early in November its operating results for the third quarter of 2016. AWS will be initiating a research report on Spartan Motors in the coming days.
Today, AWS is promoting its earnings coverage on NAV; touching on SPAR. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=NAV
http://www.activewallst.com/registration-3/?symbol=SPAR
Earnings Reviewed
During Q4 FY16, Navistar's total sales and revenue was $2.06 billion compared to $2.49 billion recorded at the end of Q4 FY15. Total sales and revenue numbers for the reported quarter missed consensus market expectations of $2.18 billion. The Company attributed the decline in sales and revenue numbers to lower volumes in the core US and Canadian markets for Class 6-8 trucks and buses.
The trucks and bus manufacturer reported net loss of $34 million, or $0.42 loss per diluted share, in Q4 FY16, compared to $50 million, or $0.61 loss per diluted share, last year in the year ago quarter. Furthermore, the quarterly loss per share missed Wall Street's expectations which had anticipated the Company to report net earnings of $0.24 per diluted share.
For FY16, Navistar's total sales and revenue were $8.11 billion which came in below $10.14 billion in the year ago same period. The Company reported net loss of $97 million, or $1.19 loss per diluted share, in FY16 compared to $184 million, or $2.25 loss per diluted share, in FY15.
Operating Metrics
In the reported quarter, the Company's costs and expenses were $2.08 billion versus $2.52 billion in Q4 FY15. During Q4 FY16, loss from continuing operations before income taxes narrowed to $18 million from $27 million in the last year's comparable quarter. For the reported quarter, the Company's EBITDA came in at $95 million versus $86 million in the same period one year ago. Furthermore, Navistar reported adjusted EBITDA of $112 million, or 5.4% of sales and revenue in Q4 FY16, compared to $209 million, or 8.4% of sales and revenue, in Q4 FY15.
Product Group Performance
During Q4 FY16, Truck segment sales were $1.40 billion, which came in below the $1.74 billion in Q4 FY15. Furthermore, the segment reported loss $61 million in Q4 FY16 versus loss of $36 million in the year ago same quarter.
The Company's Parts segment contributed $613 million to total sales and revenue during Q4 FY16 compared to $649 million in the last year comparable quarter. Furthermore, the segment's profit was marginally down during Q4 FY16 to $162 million from $163 million in the previous year's same quarter.
Navistar's Global Operations segment reported sales of $87 million in Q4 FY16 compared to $115 million for the same period last year. The segment recorded loss of $2 million in Q4 FY16, versus loss of $27 million in Q4 FY15.
The Company generated $58 million of revenues from Financial Services in both Q4 FY16 and Q4 FY15. The segment reported profit of $23 million in Q4 FY16 compared to $26 million in the prior year's corresponding quarter.
Cash Flow and Balance Sheet
In the year ended on October 31 2016, Navistar's net cash provided by operating activities surged to $267 million from $46 million in the previous year's comparable period. As of October 31, 2016, the Company had cash and cash equivalent balance of $804 million compared to $912 million, at the close of books on October 31, 2015. Furthermore, the Company had reported long-term debt of $4.0 billion in its books of accounts as on October 31, 2016, versus $4.15 billion as on October 31, 2015.
Outlook
In its earnings guidance for full-year FY17, Navistar anticipates revenues to be similar to numbers reported in FY16. Adjusted EBITDA for FY17 is forecasted to be higher than adjusted EBITDA reported in FY16. Furthermore, the Company expects manufacturing cash of about $800 million in FY17, including the capital injection from Volkswagen Truck & Bus.
Stock Performance
At the close of trading session on December 27, 2016, Navistar's stock price climbed 1.42% to end the day at $32.20. A total volume of 593.79 thousand shares were exchanged during the session. The company's share price has soared 50.68% in the past three months and 264.25% on YTD basis. The stock currently has a market cap of $2.63 billion.
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