However, during the fourth quarter Navistar might face challenges from higher costs which are likely to hurt margins. Despite the challenges, the overall sentiment surrounding the quarterly earnings appear to be positive.
In the third quarter of 2018, Navistar beat analysts’ expectations on earnings but missed the mark on revenues. Revenues rose 18% year-over-year to $2.6 billion, driven mainly by a 26% increase in core market volumes. Earnings grew to $1.71 per share from $0.38 per share in the year-ago period.
Earnings: Navistar reports solid growth in revenue and profits for Q3
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During the third quarter, based on strong industry conditions, Navistar raised its full-year 2018 revenue guidance to a range of $10.1 billion to $10.4 billion. The industry retail deliveries of Class 6-8 trucks and buses in the US and Canada are forecast to be 390,000 to 410,000 units, with Class 8 retail deliveries of 260,000 to 280,000 units in 2018.
Navistar’s stock has dropped 39% so far this year while over the past one month, shares have fallen 14%.