Shares of truckmaker Navistar (NYSE: NAV) were up 11% as of 12:35 p.m. EST on Tuesday after the company reported strong results for its fiscal fourth quarter and full-year 2018.
Continue Reading Below
Q4 earnings of $1.89 per share easily beat analyst estimates for $1.68. Sales, which came in above $3.3 billion, likewise exceeded expectations.
Navistar grew its quarterly profits 39% versus last year's Q4. Sales for the quarter increased 28% year over year, largely driven by a 45% increase in sales of Class 6-8 trucks and buses in the United States and Canada.
The quarter's results capped a strong year, and marked a welcome return to health for Navistar after a weak 2017. Profits for all of 2018 combined surged roughly 10 times year over year, from just $0.32 per share earned in 2017, to $3.41 for fiscal 2018. Sales for the year increased 20% over 2017 levels.
CEO Troy Clarke said that 2018 was a breakout year, and predicted sales of approximately $11 billion in fiscal 2019. (Wall Street is only looking for $10.6 billion).
On the other hand, management did not give GAAP earnings guidance for fiscal 2019, noting only that it expects adjusted EBITDA to range from $850 million to $900 million, up from $826 million for this flavor of profits in 2018. At the midpoint of that guidance range, adjusted EBITDA would grow 6%. Assuming similar growth in GAAP profits, Navistar might earn as much as $3.61 per share this coming year.
Wall Street, meanwhile, is still looking for $3.67 per share in profit, and could theoretically be disappointed if earnings don't grow as much as it expects in 2019.
10 stocks we like better than Navistar InternationalWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Navistar International wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of November 14, 2018