Navistar (NAV) reported earnings Tue 7 June 2016 (b/o)

** charts before earnings **

** charts after earnings **

A week later:

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Navistar beats by $0.20, reports revs in-line; lowers FY16 guidance :

• Reports Q2 (Apr) GAAP earnings of $0.05 per share, $0.20 better than the Capital IQ Consensus of ($0.15); revenues fell 18.4% year/year to $2.2 bln vs the $2.18 bln Capital IQ Consensus.
  • Adj. EBITDA +83% to $187 mln, driven by continued strong cost management, product cost improvement and record Parts segment profitability.
• Co issues downside guidance for FY16, sees FY16 revs of $8.2-8.6 bln vs. $8.81 bln Capital IQ Consensus; lowers EBITDA to $550-600 mln from $600-650 mln.
  • Updated total cost reduction guidance to well exceed $200 mln. Reduced its end-of-year manufacturing cash guidance to be ~$800 million.
  • For the second half of 2016, Navistar lowered its industry guidance range by 20,000 units, due to softening Class 8 market conditions. Given this, along with slower than anticipated market share growth domestically, weaker export markets, and the impact of a stronger dollar, the company reduced its full-year revenue and adjusted EBITDA guidance.