Navistar International Corporation (NAV) beat analyst estimates on earnings for the third quarter of 2018 but missed the mark on revenues. Shares climbed over 3% premarket following the release.
The company reported revenues of $2.6 billion for the third quarter of 2018, up 18% from the same period last year, driven mainly by a 26% jump in core market volumes.
Net income rose to $170 million or $1.71 per share, compared to $37 million or $0.38 per share in the prior-year period.
Navistar raised its guidance for the full year of 2018 based on stronger industry conditions. The company now expects revenues to be $10.1 billion to $10.4 billion and adjusted EBITDA to be $775 million to $825 million.
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. For 2019, the retail deliveries of Class 6-8 trucks and buses in the US and Canada are projected to be 385,000 to 415,000 units, with Class 8 retail deliveries between 255,000 and 285,000 units.
Navistar reported increases across all its segments with the highest in Truck at 25%, fueled by higher volumes in core markets, a growth in military sales and positive shifts in the model mix. The company also saw improvements in Parts and Global Operations mainly driven by double-digit growth in the Fleetrite brand and higher engine volumes. The Financial Services segment saw growth driven by higher average portfolio balances in the US and Mexico.