Navistar (NAV) - Get Report shares were lower on Tuesday after the producer of trucks, buses and engines said fiscal fourth-quarter net income fell 46% on weaker-than-expected revenue.
For the quarter ended Oct. 31, the Lisle, Ill., company reported earnings of $1.02 a share compared with $1.89 in the year-earlier quarter. Adjusted earnings in the period were $1.14 a share.
Revenue declined 16% to $2.78 billion from $3.32 billion.
A survey of analysts by FactSet was expecting net income of $1.02 a share, or an adjusted 98 cents, on revenue of $2.81 billion.
Among the company's segments, truck profit dropped to $86 million from $197 million. Truck sales dropped 19% to $2.1 billion.
For fiscal 2020, Navistar expects revenue to range from $9.25 billion to $9.75 billion. FactSet's survey had been looking for $10.01 billion.
At BMO Capital Markets, analyst Joel Tiss in a note called the outlook "underwhelming."
Tiss rates the stock market perform with a price target of $30. Navistar shares "will likely remain range-bound for the next year or so until the picture becomes clearer of how 2021 demand unfolds," the analyst said.
Through Monday's trading, Navistar shares had been up 25% this year. At last check they were off 7.2% at $30.04.