UPDATE: Navistar (NAV) Misses Q1 EPS by 5c, Revenues Beat; Raises FY19 Revenue Guidance Above Consensus

Navistar (NYSE: NAV) reported Q1 EPS of $0.11, $0.05 worse than the analyst estimate of $0.16. Revenue for the quarter came in at $2.4 billion versus the consensus estimate of $2.19 billion.

"We had our best first quarter since 2010 as customer acceptance of our new products translated to extended gains in our Core market share," said Troy A. Clarke, Chairman, President and CEO. "In addition to our ongoing growth in Class 8, our medium-duty market share grew by six points during the quarter, the largest year-over-year medium share gain in the industry."

The company's first quarter featured a number of positive marketplace developments. Continuing its cadence of new product launches, Navistar unveiled its new International® CV™ Series line of Class 4/5 vehicles, the only Class 4/5 truck that is designed, distributed and supported by a manufacturer specializing in commercial vehicles. Year-over-year growth in the company's Core market share was up 1.8 points, led by a six-point share increase in Class 6/7, which was attributable to strong sales of the MV® Series of medium-duty trucks. Additionally, the company's International® HX™ Series and International® HV™ Series vehicles built improved vocational order share resulting in a strong backlog. The company reported backlog growth of more than 8,000 units in its Core markets, up 18 percent since the end of fourth quarter 2018.

Outlook

"As our ongoing improvements demonstrate, the company has strong opportunities to benefit from capturing additional market share, growing parts revenue, improving margins and further de-risking the balance sheet," Clarke said. "Given the progress made in the first quarter, and our positive outlook for the remainder of the year, we are confident that 2019 will move Navistar forward on the path to generate superior shareholder returns compared to the industry."

GUIDANCE:

Navistar sees FY2019 revenue of $10.75-11.25 billion, versus the consensus of $10.7 billion.

• Adjusted EBITDA is expected to be between $850 million and $900 million.
• Industry retail deliveries of Class 6-8 trucks and buses in the United States and Canada are forecast to be 395,000 to 425,000 units, with Class 8 retail deliveries of 265,000 to 295,000 units.

For earnings history and earnings-related data on Navistar (NAV) click here.

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