28.79 +0.20 (0.70%)
After hours: 4:28PM EDT
|Bid||28.22 x 800|
|Ask||29.42 x 1400|
|Day's Range||27.70 - 29.63|
|52 Week Range||15.01 - 38.00|
|Beta (5Y Monthly)||2.19|
|PE Ratio (TTM)||12.88|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Oct 24, 2001|
|1y Target Est||N/A|
Upgrades * For Kontoor Brands Inc (NYSE: KTB), Susquehanna upgraded the stock from Neutral to Positive. Interestingly, in the first quarter, Kontoor Brands's EPS was $0.27. The stock has a 52-week-high of $43.23 and a 52-week-low of $12.90. Kontoor Brands's stock last closed at $20.23 per share. * Loop Capital changed the rating for Navistar International Corp (NYSE: NAV) from Hold to Buy. For the second quarter, Navistar International had an EPS of ($0.10), compared to year-ago quarter EPS of $1.06. The stock has a 52-week-high of $38.00 and a 52-week-low of $15.01. Navistar International's stock last closed at $27.93 per share. * Wells Fargo upgraded the stock for Sysco Corp (NYSE: SYY) from Equal-Weight to Overweight. For the third quarter, Sysco had an EPS of $0.45, compared to year-ago quarter EPS of $0.79. The stock has a 52-week-high of $85.98 and a 52-week-low of $26.00. Sysco's stock last closed at $58.60 per share. * For Entergy Corp (NYSE: ETR), UBS upgraded the stock from Neutral to Buy. Entergy earned $1.14 in the first quarter, compared to $0.82 in the year-ago quarter. The stock has a 52-week-high of $135.55 and a 52-week-low of $75.19. Entergy's stock last closed at $101.25 per share. * For Hexcel Corp (NYSE: HXL), BMO Capital upgraded the stock from Market Perform to Outperform. In the first quarter, Hexcel showed an EPS of $0.64, compared to $0.84 from the year-ago quarter. The stock has a 52-week-high of $87.00 and a 52-week-low of $24.54. Hexcel's stock last closed at $44.67 per share. * Baird changed the rating for Navistar International Corp (NYSE: NAV) from Neutral to Outperform. For the second quarter, Navistar International had an EPS of ($0.10), compared to year-ago quarter EPS of $1.06. The stock has a 52-week-high of $38.00 and a 52-week-low of $15.01. Navistar International's stock last closed at $27.93 per share. * Evercore ISI Group upgraded the stock for Toll Brothers Inc (NYSE: TOL) from In-Line to Outperform. In the second quarter, Toll Brothers showed an EPS of $0.59, compared to $0.87 from the year-ago quarter. The stock has a 52-week-high of $49.31 and a 52-week-low of $13.28. Toll Brothers's stock last closed at $34.49 per share. * JP Morgan upgraded the stock for Novavax Inc (NASDAQ: NVAX) from Underweight to Neutral. For the first quarter, Novavax had an EPS of ($0.58), compared to year-ago quarter EPS of ($0.11). The stock has a 52-week-high of $61.50 and a 52-week-low of $3.54. Novavax's stock last closed at $44.66 per share. Downgrades * BMO Capital downgraded the stock for eBay Inc (NASDAQ: EBAY) from Outperform to Market Perform. eBay earned $0.77 in the first quarter, compared to $0.67 in the year-ago quarter. The stock has a 52-week-high of $51.88 and a 52-week-low of $26.02. eBay's stock last closed at $49.36 per share. * Goldman Sachs downgraded the stock for Evolent Health Inc (NYSE: EVH) from Buy to Neutral. Evolent Health earned ($0.14) in the first quarter, compared to ($0.31) in the year-ago quarter. The stock has a 52-week-high of $12.01 and a 52-week-low of $3.50. Evolent Health's stock last closed at $6.30 per share. * Raymond James changed the rating for American Airlines Group Inc (NASDAQ: AAL) from Market Perform to Underperform. American Airlines Group earned ($2.65) in the first quarter, compared to $0.52 in the year-ago quarter. The stock has a 52-week-high of $34.99 and a 52-week-low of $8.25. American Airlines Group's stock last closed at $16.74 per share. * Evercore ISI Group downgraded the stock for Builders FirstSource Inc (NASDAQ: BLDR) from Outperform to In-Line. In the first quarter, Builders FirstSource showed an EPS of $0.34, compared to $0.34 from the year-ago quarter. The stock has a 52-week-high of $28.43 and a 52-week-low of $9.00. Builders FirstSource's stock last closed at $22.44 per share. * Evercore ISI Group changed the rating for M.D.C. Holdings Inc (NYSE: MDC) from Outperform to In-Line. M.D.C. Holdings earned $0.56 in the first quarter, compared to $0.64 in the year-ago quarter. The stock has a 52-week-high of $48.99 and a 52-week-low of $15.75. M.D.C. Holdings's stock last closed at $35.48 per share. * For Meritage Homes Corp (NYSE: MTH), Evercore ISI Group downgraded the stock from Outperform to In-Line. Meritage Homes earned $1.83 in the first quarter, compared to $0.65 in the year-ago quarter. The stock has a 52-week-high of $78.43 and a 52-week-low of $25.24. Meritage Homes's stock last closed at $73.65 per share. * RBC Capital changed the rating for Resolute Forest Products Inc (NYSE: RFP) from Outperform to Sector Perform. In the first quarter, Resolute Forest Products showed an EPS of ($0.33), compared to $0.32 from the year-ago quarter. The stock has a 52-week-high of $7.33 and a 52-week-low of $1.14. Resolute Forest Products's stock last closed at $2.31 per share. * RBC Capital downgraded the stock for Rayonier Advanced Materials Inc (NYSE: RYAM) from Outperform to Sector Perform. Rayonier Advanced earned ($0.39) in the first quarter, compared to ($0.52) in the year-ago quarter. The stock has a 52-week-high of $7.34 and a 52-week-low of $0.90. Rayonier Advanced's stock last closed at $3.21 per share. * RBC Capital changed the rating for Domtar Corp (NYSE: UFS) from Outperform to Sector Perform. For the first quarter, Domtar had an EPS of $0.09, compared to year-ago quarter EPS of $1.44. The stock has a 52-week-high of $44.76 and a 52-week-low of $18.40. Domtar's stock last closed at $24.06 per share. * RBC Capital changed the rating for Mercer International Inc (NASDAQ: MERC) from Outperform to Sector Perform. In the first quarter, Mercer International showed an EPS of ($0.05), compared to $0.78 from the year-ago quarter. The stock has a 52-week-high of $15.84 and a 52-week-low of $6.42. Mercer International's stock last closed at $9.77 per share. Initiations Goldman Sachs initiated coverage on Anthem Inc (NYSE: ANTM) with a Neutral rating. The price target for Anthem is set at $340.00. For the first quarter, Anthem had an EPS of $6.48, compared to year-ago quarter EPS of $6.03. The stock has a 52-week-high of $312.48 and a 52-week-low of $171.03. Anthem's stock last closed at $282.09 per share.Goldman Sachs initiated coverage on Humana Inc (NYSE: HUM) with a Buy rating. The price target for Humana is set at $510.00. In the first quarter, Humana showed an EPS of $5.40, compared to $4.48 from the year-ago quarter. The stock has a 52-week-high of $412.70 and a 52-week-low of $208.25. Humana's stock last closed at $392.14 per share.Needham initiated coverage on PTC Inc (NASDAQ: PTC) with a Buy rating. The price target for PTC is set at $100.00. For the second quarter, PTC had an EPS of $0.59, compared to year-ago quarter EPS of $0.22. The stock has a 52-week-high of $93.34 and a 52-week-low of $43.90. PTC's stock last closed at $80.26 per share.With a rating of Hold, HSBC initiated coverage on Coca-Cola European Partners PLC (NYSE: CCEP). The price target is set at $44.00 for Coca-Cola European. The stock has a 52-week-high of $58.94 and a 52-week-low of $28.35. Coca-Cola European's stock last closed at $40.31 per share.BMO Capital initiated coverage on Intercept Pharmaceuticals Inc (NASDAQ: ICPT) with an Outperform rating. The price target for Intercept Pharmaceuticals is set at $107.00. In the first quarter, Intercept Pharmaceuticals showed an EPS of ($2.86), compared to ($3.03) from the year-ago quarter. The stock has a 52-week-high of $125.00 and a 52-week-low of $47.57. Intercept Pharmaceuticals's stock last closed at $76.38 per share.With a rating of Outperform, Wedbush initiated coverage on Immunic Inc (NASDAQ: IMUX). The price target is set at $59.00 for Immunic. Immunic earned ($0.79) in the first quarter, compared to ($0.22) in the year-ago quarter. The stock has a 52-week-high of $19.05 and a 52-week-low of $4.19. Immunic's stock last closed at $11.41 per share.Loop Capital initiated coverage on Super Micro Computer Inc (NASDAQ: SMCI) with a Buy rating. The price target for Super Micro Computer is set at $35.00. The stock has a 52-week-high of $29.27 and a 52-week-low of $15.76. Super Micro Computer's stock last closed at $27.75 per share.With a rating of Outperform, BMO Capital initiated coverage on Viking Therapeutics Inc (NASDAQ: VKTX). The price target is set at $14.00 for Viking Therapeutics. Viking Therapeutics earned ($0.13) in the first quarter, compared to ($0.07) in the year-ago quarter. The stock has a 52-week-high of $8.87 and a 52-week-low of $3.26. Viking Therapeutics's stock last closed at $7.13 per share.With a rating of Hold, Stifel initiated coverage on Cactus Inc (NYSE: WHD). The price target is set at $20.00 for Cactus. For the first quarter, Cactus had an EPS of $0.41, compared to year-ago quarter EPS of $0.49. The stock has a 52-week-high of $35.28 and a 52-week-low of $8.16. Cactus's stock last closed at $21.19 per share.With a rating of Buy, Rosenblatt initiated coverage on Qualcomm Inc (NASDAQ: QCOM). The price target is set at $105.00 for Qualcomm. In the second quarter, Qualcomm showed an EPS of $0.88, compared to $0.77 from the year-ago quarter. The stock has a 52-week-high of $96.17 and a 52-week-low of $58.00. Qualcomm's stock last closed at $86.04 per share.Rosenblatt initiated coverage on ON Semiconductor Corp (NASDAQ: ON) with a Buy rating. The price target for ON Semiconductor is set at $22.00. ON Semiconductor earned $0.10 in the first quarter, compared to $0.43 in the year-ago quarter. The stock has a 52-week-high of $25.92 and a 52-week-low of $8.17. ON Semiconductor's stock last closed at $18.98 per share.Cowen & Co. initiated coverage on Livongo Health Inc (NASDAQ: LVGO) with an Outperform rating. The price target for Livongo Health is set at $69.00. Interestingly, in the first quarter, Livongo Health's EPS was $0.03. The stock has a 52-week-high of $64.44 and a 52-week-low of $15.12. Livongo Health's stock last closed at $57.34 per share.With a rating of Buy, Rosenblatt initiated coverage on SMART Global Holdings Inc (NASDAQ: SGH). The price target is set at $45.00 for SMART Glb Hldgs. SMART Glb Hldgs earned $0.52 in the second quarter, compared to $0.77 in the year-ago quarter. The stock has a 52-week-high of $39.08 and a 52-week-low of $16.42. SMART Glb Hldgs's stock last closed at $28.20 per share.With a rating of Outperform, Oppenheimer initiated coverage on Veeco Instruments Inc (NASDAQ: VECO). The price target is set at $18.00 for Veeco Instruments. Veeco Instruments earned $0.22 in the first quarter, compared to ($0.14) in the year-ago quarter. The stock has a 52-week-high of $19.21 and a 52-week-low of $7.42. Veeco Instruments's stock last closed at $12.69 per share. See more from Benzinga * 18 Technology Stocks Moving In Friday's Pre-Market Session * 10 Basic Materials Stocks Moving In Friday's Pre-Market Session * 10 Financial Services Stocks Moving In Friday's Pre-Market Session(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Navistar International Corp. (NYSE: NAV) second-quarter fiscal loss from COVID-19-disrupted production in April points to worse numbers for truck manufacturers that will report pandemic-addled results for the April-June quarter.For Navistar, things likely will get worse in its third quarter, which covers May-July. Its second-quarter report on Thursday, June 4, pointed to the difficulties that manufacturers and suppliers will unpack when they report their second-quarter results in July.None of the publicly traded manufacturers, including Navistar, are providing financial guidance because of the uncertainties created by the pandemic. Orders fall On a conference call with analysts, Navistar Chairman, CEO and President Troy Clarke shared insight into the early impacts of the health crisis.Class 8 truck orders fell from about 3,000 per week in February to 1,000 a week in April. The drop off was on top of already slowing orders because fleets took so many deliveries of new trucks in 2018 and 2019. Just 4,100 new Class 8 orders were placed in April across the industry."As freight demand declined in the quarter, truck utilization dropped and rates fell," Clarke said. "With excess trucking capacity, companies reassessed their needs, especially in the general freight, rental leasing and private fleet segments."About 300 orders, or 2.5% of the company's backlog, were canceled in April. It has about 25 weeks of Class 6-8 trucks and buses to build based on its backlog of 18,000 units, which was down 12% from the end of the first quarter,"It's too early to provide a precise order forecast for the remainder of the year, but we expect orders to increase as the reopening of the economy continues," Clarke said.Used trucks The dearth of new truck deliveries took a toll on the used truck market, too. Pricing was 20% below a year ago, but the lack of trades muted demand. Navistar, which sells a lot of trucks to leasing companies like Penske and Ryder, took an additional hit because those companies converted rental trucks into leases, delaying new truck purchases.Dealer inventories fell 4% in the quarter, leaving a slightly higher-than-average 127-day hangover.Lost production Navistar lost 50 days of production between February and April. Shutdowns of plants in Springfield, Ohio; Tulsa, Oklahoma; and Escobedo, Mexico. Those idlings continued into May and will show up in Navistar's third quarter results."More than half of the lost days came from the suspension of production at our Springfield plant," where idled General Motors Company (NYSE: GM) provides engines for Class 4-5 pickup trucks and cabs for the cutaway G-van chassis built there, Clarke said. The other lost days were due to issues with suppliers in Mexico, where stay-at-home requirements came later than in the U.S.By the numbers Navistar reported a $38 million loss in the quarter, narrower than the $48 million loss reported a year ago when the truck maker took a $159 million charge to settle complaints over defective Maxxforce engines in trucks built in the previous decade.Revenues in the quarter were $1.9 billion, down 36% from nearly $3 billion in the year-ago quarter. New vehicle deliveries of its core Class 6-8 trucks and buses in the United States and Canada were nearly 40% below a year ago, primarily due to COVID-19.Earnings before interest, taxes, depreciation and amortization (EBITDA) were $61 million, compared to $55 million in the second quarter of 2019. Navistar cut $300 million in costs and issued $600 million in new debt during the quarter to leave it with $1.5 billion in cash and marketable securities as of April 30.Open issues * Parts sales fell 20% in the quarter because freight demand was weak, leading to a dramatic drop in miles driven. With schools closing, buses did not need parts either."[Navistar] On-command connection data indicated the general freight hauling and leasing and rental was down 6% to 8%," Clarke said. "As fleet utilization increases, parts sales will increase, returning to normal levels." * The TRATON Group's $2.9 billion offer January 30 to purchase the 83% of Navistar it does not already own is still on the table."The board is managing these discussions, but frankly the COVID pandemic has slowed the process," Clarke said. "It has not been accepted nor rejected. Discussions continue." * As to his own role as CEO, Clarke would not discuss whether an extension beyond July would occur. The board voted in April to extend Clarke's tenure for a third time with an understanding that he would remain non-executive chairman for two years.Click for more FreightWaves articles by Alan AdlerSee more from Benzinga * Spot Rates Above Previous Year As Volumes Correct – FreightWaves NOW * US To Canada Truck Border Crossings Rebound * Today's Pickup: Saudi Arabia And Russia Push For Extending Oil Output Cuts(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
NAV earnings call for the period ending April 30, 2020.
The number of confirmed cases of the coronavirus that causes COVID-19 rose past 6.6 million on Thursday, and California reported a rise in infections after weeks of slowing, raising concerns that the protests at the death of George Floyd, and the reopening of certain counties, are helping spread the illness.
Navistar International Corp. (NYSE: NAV) reported a $38 million loss in its fiscal second quarter because of production suspensions and supply chain issues related to the COVID-19 pandemic.The loss was narrower than the $48 million in red ink reported a year ago when the truck maker took a $159 million charge to settle complaints over defective engines in trucks built in the previous decade.The loss, which amounted to 38 cents per diluted share, was three cents less than a consensus of analysts, who projected a loss of 41 cents per diluted share.Revenues in the quarter were $1.9 billion, down 36% from nearly $3 billion in the year-ago quarter. New vehicle deliveries of its core Class 6-8 trucks and buses in the United States and Canada were nearly 40% below a year ago, primarily due to COVID-19.Earnings before interest, taxes, depreciation and amortization (EBITDA) was $61 million, compared to $55 million in the second quarter of 2019. Navistar cut costs and issued $600 million in new debt during the quarter to leave it with $1.5 billion in cash and marketable securities as of April 30."Recovery will likely be gradual as businesses reassess operating plans to return to a ‘new normal,' but this ‘new normal' will still require trucks," said Navistar Chairman, CEO and President Troy Clarke. "The actions we've taken over the past few months have us in position to succeed, no matter the shape of [the] recovery." Photo: NavistarSee more from Benzinga * Sales Lessons Learned From 'The Last Dance' (With Video) * Canadian Railroads Shatter Previous May Grain Records * CMA CGM Donates 200,000 Face Masks(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Navistar (NAV) delivered earnings and revenue surprises of 86.11% and 10.26%, respectively, for the quarter ended April 2020. Do the numbers hold clues to what lies ahead for the stock?
Shares of Navistar International (NYSE:NAV) rose 0.2% in pre-market trading after the company reported Q2 results.Quarterly Results Earnings per share came in at ($0.38), which beat the estimate of ($0.41).Revenue of $1,925,000,000 declined by 35.75% from the same period last year, which beat the estimate of $1,870,000,000.Looking Ahead Navistar International hasn't issued any earnings guidance for the time being.The upcoming fiscal year's revenue expected to be between $9,250,000,000 and $9,750,000,000.Conference Call Details Date: Jun 04, 2020View more earnings on NAVTime: 09:00 AMET Webcast URL: https://event.on24.com/eventRegistration/EventLobbyServlet?target=lobby20.jsp&eventid=2326732&sessionid=1&key=8A0B92CD1A591BB09C20339DD09AC76D&eventuserid=304876143Price Action Company's 52-week high was at $38.00Company's 52-week low was at $15.01Price action over last quarter: down 27.96%Company Description Navistar is a manufacturer of medium- and heavy-duty trucks, school buses, military vehicles, and diesel engines. Its principle markets are North America and Latin America. Its trucks are sold through over 800 dealers in the United States, Canada, and Mexico. It currently commands a 17% share for its core products, which include class 6 through 8 trucks and school buses. The company previously struggled to develop an unconventional diesel emission technology, or EGR, to meet 2010 EPA guidelines, which caused its market share to plummet to 16% in 2015 from 36% in 2009. In 2019, manufacturing revenues were approximately $11 billion.See more from Benzinga * Recap: Greenlane Holdings Q1 Earnings * KLX Energy Services: Q1 Earnings Insights * Recap: LexinFintech Q1 Earnings(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Shares of Navistar International Corp. were indicated up nearly 1% in premarket trading Thursday, after the trucks and diesel engines maker reported a narrower than expected loss while revenue fell less than forecast. Net losses narrowed to $38 million, or 38 cents a share, from $48 million, or 48 cents a share, in the year ago period. Excluding non-recurring items, the company swung to an adjusted net loss was $10 million from net income of $105 million last year. The FactSet consensus was for a net loss of 44 cents a share and a adjusted loss of 30 cents a share. Revenue fell 36% to $1.93 billion, due primarily to the impact of the COVID-19 pandemic, which resulted in lower volumes in its core trucks and buses market, but was above the FactSet consensus of $1.90 billion. Truck sales fell 39% and parts sales declined 23%. The stock has dropped 29.7% over the past three months through Wednesday, while the S&P 500 slipped 0.2%.
Navistar's second-quarter earnings report is due out before Thursday's open
(Bloomberg) -- Embattled German electronic payment provider Wirecard AG is close to naming a partner at SoftBank Group Corp.’s investment arm as a new supervisory board member, continuing its personnel overhaul in an effort to regain shareholder confidence, according to people familiar with the matter.Samuel Merksamer’s appointment could be announced as early as this week and is seen as a vote of confidence by SoftBank in a company whose market value has dropped about 14% this year, the people said, declining to be identified discussing information that isn’t public.Merksamer joined SoftBank Investment Advisers, which controls the $100 billion Vision Fund, last October, and has represented billionaire Carl Icahn on several corporate boards including truck maker Navistar International Corp., American International Group Inc. and Hertz Global Holdings Inc.A spokesman for Wirecard declined to comment. A spokesman for SoftBank Investment Advisers wasn’t immediately available to comment.In April last year, SoftBank agreed to buy $1 billion of Wirecard convertible bonds, and in September cut its exposure in a complex transaction that included signing a “strategic cooperation agreement” with the payments firm. The move was seen as facilitating partnerships between SoftBank’s portfolio companies and Wirecard, including Auto1 Group, Brightstar and Oyo Corp.Wirecard’s supervisory board has five members since former Chairman Wulf Matthias resigned and was replaced by Thomas Eichelmann, who had joined the committee mid-2019. In Germany, supervisory boards have an oversight function and usually consist of 20 members.Read More: Wirecard Expands Management Team in Bid to Revive Investor TrustWirecard has been mired in controversy about its accounting practices and has put off the publication of its 2019 financial results three times. The company has been working with KPMG on a probe into allegations about accounting irregularities brought forward by a series of articles in the Financial Times. A special audit by KPMG in April failed to resolve all concerns and triggered a 26% decline in Wirecard’s stock.Wirecard’s shares rose 1.7% to 94.17 euros at 3:29 p.m. in Frankfurt on Wednesday. (Updates with Wirecard’s share price in final paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (Recession is Imminent: We Need A Travel Ban NOW). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each […]
Navistar (NAV) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
For those feeling lost in all of the stock market fog, investing gurus can offer a sense of clarity. No one more so than John Paulson, the billionaire investor who made a fortune by betting against the 2007 housing bubble.Paulson built his name and reputation the old hard way – in 1994 he parlayed his $2 million in seed money into one of the most successful hedge funds on Wall Street. In its last 13F filing, for Q1 2020, his firm, Paulson & Co, reported nearly $10.7 billion in assets under management. And in recent days, his long-term love affair with gold stocks has started turning away from lackluster returns.Gold is not the only thing drawing in Paulson’s attention – and his money. He has also recently bought heavily into heavy industrial stocks and cutting-edge high techs. We’ve used TipRanks’ database to pull up the details on three of Paulson’s recent major purchases to find out what makes those stocks special.Kirkland Lake Gold (KL)The first stock we’ll look at is, indeed, a gold stock. In fact, with a market cap over $10 billion, Kirkland plays in the gold mine big leagues. The company has six operating mines, in Canada and Australia, which last year produced over 974,000 ounces of gold. Even after the coronavirus hit, the company estimates 2020 production at 1.5 million ounces, telling investors that the increase is based on higher quality ores coming out of the mines. Kirkland’s financial position is sound, and the company saw free cash flow increase by 81% last year.In the first quarter of this year, Paulson took out a new position in KL stock, buying up more than 1.5 million shares. This is a clear sign that Paulson remains bullish on gold. In the case of Kirkland, this makes sense, as the stock, three months after the February market collapse, is back at pre-bear prices.Writing from CIBC, 5-star analyst Cosmos Chiu also sees clear sailing ahead for KL. He writes, “We continue to like Kirkland Lake Gold as one of our top picks, with three cornerstone assets of Fosterville, Macassa, and Detour Lake that continue to drive high profitability. In Q1, Kirkland Lake Gold generated $191.4 million in adjusted FCF, with Detour Lake contributing $78 million from its first two months…”Chiu’s opinion backs his Buy rating, as does his C$69 (US$$50.20) price target. At current prices, this target suggests a robust 33% upside for the coming year. (To watch Chiu’s track record, click here)Overall, Wall Street agrees that KL is a buying proposition. The stock’s 10 recent reviews break down to 7 Buys and 3 Holds, making the analyst consensus rating a Moderate Buy. KL is currently selling for $37.64, and the $47.13 average price target implies an upside of 25% this year. (See Kirkland stock analysis on TipRanks)Tech Data Corporation (TECD)The next stock on our list is not a new position for Paulson, but it is one that he increased substantially. Tech Data fills a vital niche in the IT industry. The company sells a broad range of products, from logistic capabilities and add-on value to some of the biggest names in tech. TECD’s products, in short, allow cloud, IoT, and other tech applications to work seamlessly.And let’s face it, that’s a niche that will benefit from the coronavirus crisis. With so many people shut in their homes for nearly three months, and millions of workers switching to telecommuting, networking and other high-tech connection devices were in high demand. While the market slumped in February/March, TECD saw a huge jump in earnings for Q1. While Q1 is historically the company’s best of the year, the sequential gains going into Q1 2020, of 60%, were substantially higher than the 50% sequential gain recorded between Q4 2018 and Q1 2019. The results for Q1 2020 were solid; the company reported $4.88 in EPS, beating the forecast by 2%, on top of the strong sequential gain.Tech Data’s solid position in a niche bound to see gains was clear to Paulson. He increased his holding in the stock by 50%, buying over 66,000 shares to make his total holding 200,000. At the current share price, this worth $26.7 million. Reward potential is the name of the game for 5-star Northcoast analyst Keith Housum. In his note on this stock, in which he upgraded his firm’s stance from Neutral to Buy, Housum wrote, “The recent market dislocation has created a risk/reward profile that is leaning convincingly toward a great short term opportunity for investors to lock in a 18% gain to be recognized over next several months.”Housum set a $145 price target on TECD shares, suggesting an upside that now stands at 6.5% for the next 12 months. His is the only recent review of the stock in the TipRanks database – but the Smart Score on this stock, which analyzes 8 separate factors that influence future share price, is a perfect 10. (See Tech Data stock analysis at TipRanks)Navistar (NAV)The third stock on our list is Navistar, a major player in heavy industry. The company’s main subsidiary, International, is a name well-known to truckers; it produces heavy trucks, busses, and diesel engines for both the commercial markets and the defense industry. That cereal you ate for breakfast this morning? There’s good chance it was delivered to the grocery store in an International truck.The economic shutdowns in response to coronavirus hit NAV hard, and the company’s stock – which had been riding high after a strong Q4 earnings beat – has still not recovered from the February price crash. There are at least two bright spots. First, the Q1 losses were not quite as deep as expected; NAV reported a net loss of 33 cents per share, against the forecast of 38 cents. And second, the company is sitting on $1 billion in available cash, and requires about half that sum to maintain operations. It’s an enviable position for any company to hold, and, along with is one of the company’s clear strengths.That NAV has clear strengths is shown by Paulson’s move toward the stock. He bought up over 223,000 shares in Q1, opening a new position that is currently worth almost $5.8 million. Paulson is known for accepting risk – but he’s also known for betting big before the markets change direction.It’s worth paying attention, because on this one Paulson is heading at right angles to the Wall Street sentiment. BMP Capital’s Joel Tiss rates NAV a Hold, writing, “The company has done a tremendous amount of work to lower its cost structure, redesign its products, and gain back some lost market share all while trimming its less profitable product lines… and seeing that the need for new vehicles from large leasing and rental companies is projected to drop by as much as 50% y/y in 2020, we expect the company’s market share could come under further pressure this year.”Even with his Hold, however, Tiss does not give up on NAV. His $35 price target implies a solid upside of 34% for the coming year. (To watch Tiss’ track record, click here)NAV has a unanimous analyst consensus rating – a solid Hold, based on 6 reviews. The stock has been volatile in the past year, and the current share price is $26.68. At $31.33, the average price target indicates room for a potentially strong upside of 17%. (See Navistar stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Navistar International Corp. (NYSE: NAV) is recalling more than 4,900 late-model Class 8 International LT and RH tractors because defective connecting rods could cause engine failure, stranding a driver in traffic.The company knows of three instances in which a driver was stuck in a lane of traffic and dozens in which the driver managed to ease the truck to the side of the road. An engine knocking noise, rough idle or an engine warning light can alert a driver to an imminent engine shutdown.No related crashes or injuries are known, Navistar Vice President of Service Mark Reiter told FreightWaves.Behind the scenesIn a rare behind-the-scenes look at the analysis of a problem and the discussions of what to do about it, Navistar described what led to an April 30 safety defect report to the National Highway Traffic Safety Administration (NHTSA). The agency posted the recall on its website on Thursday."One of the things we did was reach out to some of these fleets' call centers so we could find out what the driver actually reported," Reiter said. "We wanted to understand whether there were safety concerns for drivers."Company investigators collected data for the 2018-2020 International LT and the 2019 and 2020 RH on-highway trucks with Navistar A26 engines. An estimated 13%, or about 640 trucks in the recall population, is likely to experience the issue. About five failures a week are being reported, Reiter said.Supplier changeThe suspect parts, made by Camtac Manufacturing, a Linamar Corp. subsidiary in Guelph, Ontario, connect the piston to the crankshaft. One of two Camtac machines making connecting rods was machined outside the design tolerance for straightness between February 2018 and June 2019.Coincidentally, Navistar was onboarding a new supplier for the component when it learned in September 2019 of connecting rod failures in five trucks at one fleet, Reiter said."We accelerated that change, so within six weeks we went from first notification of an issue to being out of the supplier and into a different supplier so we were able to have clean connecting rods," he said.‘Infant mortality'The connecting rod issue is what safety investigators call "infant mortality," meaning it presents itself early in a vehicle's life. The trouble spot is in the low 100,000s of miles. Trucks with higher mileage are unlikely to have the issue.In the faulty connecting rods, the bushing material in the small end bore of the connecting rod can develop cracks or lose chunks of bushing material over time, leading to connecting rod engine failure, Navistar told the NHTSA. "This is a fatigue failure," Reiter said. "This is not a wearout mode."Determining the beginning of a defect is easy because of multiple failures. "The part you really want to get right is when does it end," he said. Connecting rods are among Navistar engine components covered under a 500,000-mile warranty.Internal debateEven with a relatively high failure rate, Navistar was unconvinced the issue imperiled driver safety. Its data analytics team identified more than 90% of the trucks likely to have bad connecting rods."This was one that we weren't sure if it was a safety concern at all, and there's probably still some people that [disagree it is]," Reiter said.The company considered how to address the problem short of replacing the engines in 4,499 trucks in the United States and 410 trucks in Canada. Navistar decided the best remedy would be a red dashboard warning light programmed into the engine control module (ECM) or by adding a sensor. Newer trucks could get a fix delivered over the air and skip a trip to a dealership."We [looked at] previous recalls where the remedy was to provide advance notification of a failure," Reiter said. "We saw that some other manufacturers had done something similar."Navistar considered but rejected advising drivers against operating the trucks since 87% are believed to be free of the problem."One of the things that is unique about this recall is that the remedy is not to go out and replace every engine or connecting rod in the suspect population," Reiter said. "Although the failure rate is high, we don't think it's high enough to do open-heart surgery."Navistar is still developing the warning light fix. Customers and dealers will be informed by letter by July 8 or sooner. The NHTSA recall is 20V-See more from Benzinga * Cummins' Melting Fuel Heater Leads To Big Navistar Recall * Daimler Trucks Cautiously Resumes US Production * Truck Sales In Mexico Fall Sharply Due To Coronavirus Pandemic(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Navistar International Corp. New York, May 04, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Navistar International Corp. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's assessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers, which was followed by a rating committee.
Navistar Inc. is recalling more than 50,000 trucks and buses because an electric fuel heater in a Cummins' medium-duty diesel engine used in school buses, trucks and emergency vehicles could overheat, causing plastic in the fuel heater to melt and potentially catch fire.If that happens, an unexpected engine stall could occur, increasing the possibility of a crash, according to Cummins' and Navistar filings with the National Highway Traffic Safety Administration (NHTSA).The International trucks and IC buses account for the majority of 68,605 engines that Cummins Inc. (NYSE: CMI) recalled March 31. Navistar International, Inc. (NYSE: NAV) was the only customer listed in Cummins' recall notice. The status of the other 17,885 engines was unknown. About 10% of the Cummins' B6.7 diesel engines are suspected to have the condition. Cummins said it was unaware of any fires, accidents or injuries related to the condition.Cummins is developing a remedy and will notify International and IC dealers on April 30. The recall is expected to start May 29.Cummins investigated the first case of the fuel heater melting in early February. It became aware of 12 cases of the component melting by the time it decided on March 24 to conduct a recall. The NHTSA recall is 20E-018.Cummins told Navistar of the issue, and the truck maker developed the affected population covered in NHTSA recalls 20V-219 and 20V-220.The 27,421 vehicles in the first Navistar recall are:IC Bus/1300 FBC/2018-2019IC Bus/CE/2018-2021IC Bus/HC/2018-2019 IC Bus/TC/2019-2021 International/Durastar/2017-2020International/HV/2018-2021International/MV/2018-2021 andInternational/Workstar/2017-2020The second Navistar recall covers 23,299 models of IC Bus/CE from the 2017-2021 model years.See more from Benzinga * Today's Pickup: C.R. England Tops Four Million Meals Donated * Trucking Freight Futures Market Summary Week Ending 4-24-2020 * Australia Secures Subsidized Airfreight For Exporters(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Daimler Trucks North America (DTNA), the largest manufacturer of heavy-duty trucks in North America, resumed production at its U.S. plants this week, albeit with plant-specific worker protections in place.The maker of Freightliner and Western Star trucks had suspended production on March 24 on a week-by-week basis at plants in Mount Holly and Cleveland, North Carolina; Gaffney, South Carolina; and Portland, Oregon."We are going to great lengths to ensure the safety of our employees and continue to assess the situation daily," the Portland-based subsidiary of Daimler Trucks AG said in a statement. "The safety and well-being of our employees is our priority as we return to work to support the critical essential infrastructure of the country."In addition to providing PPE at our locations, we have localized task forces comprised of both plant management and union labor representation at each of our manufacturing facilities to safeguard the health of our employees and to continue to assess our measures daily."Parent company Daimler AG (OTCMKTS: DDAIF) began reopening Mercedes-Benz car plants in Europe this week as well.Other truck makers reported various states of operation.Navistar International Corp. (NYSE: NAV), which makes International trucks in Springfield, Ohio, and Escobedo, Mexico, said last week it was extending its production suspension until early May while also trying to conserve cash. The company on Tuesday said it plans to sell $500 million in senior secured debt depending on market conditions."The extent of this virus is unprecedented, and our personal lives, businesses and global economies are being impacted by events beyond our control," Navistar CEO Troy Clarke said April 14.Volvo Group, parent for Volvo Trucks North America and Mack Trucks, did not immediately provide an update on production. * Mack had suspended production through April 17 in Lehigh Valley, Pennsylvania. * Volvo Trucks was operating a skeletal staff at its manufacturing complex in Dublin, Virginia. * An engine plant serving Volvo and Mack assembly plants was closed through April 10.PACCAR Inc. (NASDAQ: PCAR) parent of Kenworth Truck Co. and Peterbilt Motors, told analysts on its first-quarter earnings call Tuesday that it was gradually reopening plants, starting with Europe and Australia."It's going to be done on a location-by-location basis in a phased manner," PACCAR CEO Preston Feight said. "We will work through the rest of our plants in the coming weeks and make sure we take care of the employees and bring the truck factories back up and running."Truck manufacturers face a difficult environment as new equipment orders were already challenged by overproduction in 2018 and 2019.The coronavirus pandemic made the situation more dire as North American industry inventory-to-sales ratios of unsold trucks swelled to 4.1 months at the end of March compared with the desired 2.5 months, according to ACT Research.Photo credit: DaimlerSee more from Benzinga * Landstar Saw Market Deteriorate In Last Week Qf Quarter, Issues No 2Q Guidance * CSX First-Quarter Net Profit Falls But Operating Ratio Reaches Record * Get Ready For The New, Slimmer Delta(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Moody's Investors Service, ("Moody's") assigned a B2 rating to Navistar International's (Navistar) $500 million of new senior secured notes (Notes) due 2025. Navistar's other ratings are unchanged, including the corporate family rating (CFR) at B2 and senior unsecured rating at B3. Also unchanged are the rating of its major operating subsidiary, Navistar, Inc, with senior secured term loan at Ba2 and the industrial revenue bonds at B1.
Moody's Investors Service, ("Moody's") affirmed the ratings of Navistar International Corp. ("Navistar"), including the corporate family rating (CFR) at B2 and senior unsecured rating at B3, and also affirmed the rating of its major operating subsidiary, Navistar, Inc. with senior secured at Ba2 and the industrial revenue bonds at B1. The Speculative Grade Liquidity rating is unchanged at SGL-3.
An apparent slowdown in deaths and hospitalizations from the coronavirus that causes COVID-19 the U.S. epicenter New York weighed against a grim forecast for the global economy and a widening row between President Donald Trump and state governors over how to get Americans back to work.