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Omar Venerio
Omar Venerio
Articles (1575) 

Wall Street Rebounds Tuesday

Navistar International rises on strong earnings

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. (NYSE:NAV) 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

Losers

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.

About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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