Navistar swings to a net loss of £28.49 million in the fiscal third quarter

Navistar International Corp. (NYSE: NAV) reported to have concluded its fiscal third quarter in loss on Wednesday. The company attributed its dovish performance to the Coronavirus pandemic that weighed on demand for its trucks and parts in recent months.

Navistar opened about 6% down in the stock market on Wednesday. In the next hour, however, the stock regained about half of its intraday decline. Shares of the company are now trading at £27.72 per share versus a year to date low of £11.78 per share in March.

Navistar’s Q3 financial results versus analysts’ estimates

Navistar said that its net loss in the third quarter came in at £28.49 million that translates to 28.49 pence a share. In the same quarter last year, it had recorded £120 million of net profit or £1.20 per share. Its subsidiary, Navistar Defence expressed plans of investing £6.16 million in West Point plant earlier this week, that’ll create roughly 500 new jobs.

In terms of sales, the truck manufacturer registered a 44.94% year over year decline to £1.29 billion in Q3. According to FactSet, experts had forecast the company to print a higher £1.38 billion in revenue in the third quarter. Their estimate for loss per share was capped at 9.24 pence.

Charge-outs ascribed to its trucks and buses (Class 6 to 8) in the United States, and Canada were 53% lower in the Q3 on an annualised basis. At £1.31 billion, costs and expenses were also lower than the year-ago figure of £2.19 billion. Volkswagen also said last week that it plans on resuming Navistar takeover push in the upcoming months.

CEO Persio Lisboa’s remarks on Wednesday

CEO Persio Lisboa commented on the earnings report on Wednesday and said:

“Our fiscal third quarter opened during the middle of many stay-at-home orders and ended with sections of the economy beginning to reopen, and our results certainly reflect this.”

Navistar valued its cash (consolidated), cash equivalents, and marketable securities at £1.27 billion at the end of the third quarter. Navistar also highlighted on Wednesday that its facility in San Antonio will be fully operational by the spring of 2022. The facility, it added, will primarily focus on manufacturing fully electric and diesel vehicles only.

At the time of writing, Navistar is valued at £2.75 billion and has a price to earnings ratio of 19.34.