U.S. stocks were in positive territory on Tuesday morning, recovering from steep losses in the previous trading day. The Dow Jones Industrial Average gained 185 points to 23,778, the S&P 500 index jumped 0.53% to 2,559 and the Nasdaq Composite Index rose 0.73% to 6,803.
Shares of Navistar International Corp. (NAV, Financial) jumped nearly 20% on Tuesday after the company posted fourth-quarter earnings of $1.89 per share on $3.32 billion in revenue, reflecting 27.7% year-over-year growth. The company beat earnings estimates by 26 cents and revenue expectations by $110 million.
Adjusted earnings before interest, taxes, depreciation and amortization rose 20% to $322 million, versus $268 million a year ago. Fiscal year 2018 adjusted EBITDA increased 42% to $826 million, versus $582 million the prior year. Full-year adjusted EBITDA margins increased to 8.1% from 6.8% in 2017.
For the quarter, the Truck segment registered a profit of $197 million, up from $112 million in the prior -year quarter. For the year, it recorded a profit of $397 million, up from a $6 million loss in 2017. The Parts segment posted a profit of $156 million, down from $157 million. For the year, it was $569 million, down from $616 million.
Looking ahead to 2019, the company expects revenue to be between $10.75 billion and $11.25 billion. Adjusted EBITDA is projected to be between $850 million and $900 million.
Gainers
- General Electric Co. (GE, Financial)
- Freeport-McMoRan Inc. (FCX, Financial)
- Darden Restaurants Inc. (DRI, Financial)
- Boeing Co. (BA, Financial)
- Applied Materials Inc. (AMAT, Financial)
Losers
- Biogen Inc. (BIIB, Financial)
- PPL Corp. (PPL, Financial)
- Centene Corp. (CNC, Financial)
- Hess Corp. (HES, Financial)
- Humana Inc. (HUM, Financial)
Global markets
The main European stock markets traded lower. The U.K.'s FTSE 100 slid 1.06%, France's CAC 40 dipped 0.71%, Germany's Dax declined 0.11% and Spain's IBEX 35 retreated 1%.
In Asia, Japan's Nikkei 225 fell 1.82%, India’s BSE Sensex jumped 0.21%, Hong Kong's Hang Seng lost1.05% and China's Shanghai Composite slid 0.82%.
Disclosure: The author holds no positions in any stocks mentioned.
