Navistar misses by $2.38, beats on revs
Reports Q2 (Apr) loss of $3.65 per share, $2.38 worse than the Capital IQ Consensus Estimate of ($1.27); revenues rose 8.7% year/year to $2.75 bln vs the $2.66 bln consensus.
Guidance: The company provided the following guidance updates:
- Second quarter highlights include sequential and year-over-year improvements both in orders and retail market share for medium- and heavy-duty trucks. The company's medium-duty Class 6/7 retail market share was 26.4 percent for the quarter, up from 17.3 percent in the first quarter of 2014 and 25.8 percent in the second quarter of 2013.
- Combined Class 8 retail market share was 14.9 percent for the quarter, up from 13.9 percent in the first quarter of 2014 and 14.5 percent in the second quarter of 2013. Navistar's combined Class 6-8 truck and bus retail market share for the second quarter was 18.5 percent, and the company ended the period with an order backlog 82 percent higher than this time one year ago.
- Second quarter 2014 EBITDA was a loss of $119 million, which included the $151 million intangible asset impairment charge, $42 million in pre-existing warranty adjustments and $8 million in restructuring charges. As a result, adjusted EBITDA was $82 million, which exceeded the company's second quarter guidance of between $25 million to $75 million, excluding pre-existing warranty and one-time items. Navistar finished the second quarter 2014 with $1.06 billion in manufacturing cash, cash equivalents and marketable securities, in line with its cash guidance range of $1.0 billion to $1.1 billion.
Guidance: The company provided the following guidance updates:
- Raised Class 8 industry forecast for FY2014 (U.S./Canada) to 225,000-235,000.
- Increased FY2014 structural cost savings goal to $250 million, versus its previous goal of $175 million. Projects Q3 EBITDA between $75 million - $125 million, excluding pre-existing warranty and one-time items. Projects between $950 million and $1.05 billion in manufacturing cash, cash equivalents and marketable securities at the end of Q3.
- "We also expect our financial performance will continue to build quarter-over-quarter, with third quarter results better than second quarter, and our fourth quarter performance better than the third quarter. We are progressing and building momentum."