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Earnings Analysis: 
Navistar Back on Track
Author: George Shopov
123jump.com



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Navistar International, the No.3 U.S. truck maker, returned to profitability in its fourth quarter, with results beating analysts' expectations.

 
Navistar International Corp. (NAV: chart) reported before the bell Tuesday that it swung to a quarterly profit, rebounding from a year-ago loss, when results were weighed down by charges to cover the costs of closing some plants. The U.S. third largest producer of heavy-duty trucks said it earned $77 million, or $1 a share, in its fiscal 2003 fourth quarter, compared with a loss of $460 million, or $7.58 a share, in the 2002 comparable period. Excluding gains, Warrenville, Illinois-based Navistar posted earnings of 72 cents a share, a penny ahead of analysts’ expectations. For the quarter ended October 31, revenue slipped to $2 billion from $2.06 billion a year earlier. For the fiscal year ended October 31, the company posted a loss of $18 million, or 27 cents a share, on revenue of $7.34 billion, in contrast to a loss of $536 million, or $8.88 a share, on revenue of $6.78 billion, in 2002.

Navistar shares dipped 1.27% on Tuesday to $42.90. The stock dropped 3 cents to $42.87 in after-market trade.

Chico's FAS, Inc. (CHS: chart), the Fort Myers, Florida-based women's clothing retailer, said after the bell Tuesday its quarterly earnings jumped 72%, boosted by stronger sales. The company reported fiscal 2004 third-quarter profit of $27 million, or 30 cents per share, up from $16 million, or 18 cents per share, in the year-ago quarter, and above Wall Street’s expectations for profit of 27 cents per share on average. Chico’s said net sales rocketed up 53.4% to $211 million, and comparable-store sales surged 20.9%, in the quarter ended November 1. The company said it also benefited from its recent acquisition of the White House/Black Market chain.

The stock slid 1.67% on Tuesday to $38.25. Company shares rose 2.40% to $39.27 in after-hours trading.

Sports Authority, Inc. (TSA: chart) of Englewood, Colorado, said after market close Tuesday it swung to a third-quarter loss, on merger-related costs. The U.S. largest sporting goods chain reported a loss of $7.7 million, or 31 cents a share, for the third quarter ended November 1, against a profit of $1.4 million, or 11 cents a share, in the same period last year. Before special items, the company said it earned $4.4 million, or 17 cents a share, topping analysts’ projections for profit of 14 cents a share.

Company shares shed 56 cents to close Tuesday at $42.75. The stock slipped 1.05% to $42.30 in after-hours trading.

Vivendi Universal S.A. (V: chart), the world’s No.3 media company, said Tuesday it swung to a profit of €131 million ($157 million), in its third quarter, from a loss of €1.23 billion, in the prior-year third quarter. The France-based company attributed the results to strong performances at its pay-TV unit Canal Plus and its Moroccan telecommunication business. For the quarter ended September 30, Vivendi said operating profit was €896 million ($1.07 billion), down from €1.2 billion, last year, due to business selloffs.

Vivendi shares fell 0.90% to close Tuesday at $23.11.

Movado Group, Inc. (MOV: chart) posted Tuesday third-quarter net income of $10.1 million, or 80 cents a share, a 14% increase from $8.8 million, or 73 cents a share, in the 2003 equivalent. The Paramus, New Jersey-based watchmaker said results were due to the introduction of new products and improved product assortment at its boutiques. For the year, Movado expects to post earnings of $1.78 to $1.81 a share.

The stock closed Tuesday up $1.92, or 7.05%, at $29.17.

Cubic Corporation (CUB: chart) of San Diego, California, said Tuesday it earned $8.5 million, or 32 cents per share, in its fourth quarter, matching analysts’ forecasts. Fourth-quarter earnings were down from the year-ago profit of $10.2 million or 38 cents per share. For fiscal year ended September 30, 2003, the defense technology company posted a net profit of $36.5 million or $1.37 per share, up from $29.4 million or $1.10 per share, in 2002.

Cubic shares plummeted 10.63% on Tuesday to $26.90.

REX Stores Corporation (RSC: chart) reported Tuesday a third-quarter net profit of $4.1 million, or 32 cents per diluted share, compared with $4.3 million, or 31 cents per diluted share, generated a year earlier. The Dayton, Ohio-based consumer electronics retailer said sales were up 1% to $96.6 million from $95.7 million, a year ago, helped by large-screen, HDTV-ready televisions.

The stock dropped 61 cents to $15.24 at market close Tuesday.

FirstEnergy Corp. (FE: chart) of Akron, Ohio, said Tuesday its 2004 earnings will fall short of expectations, citing an unfavorable decision on a rate case and increased amortization costs. The energy company said it expects a profit of $2.70 to $2.85 per share, which would be below the average analysts’ estimate of $2.90 per share.

The stock closed Tuesday at $34.80, down 15 cents, or 0.43%. Company shares dived 0.75% to $34.54 in after-market trade.

Eastman Chemical Company (EMN: chart) confirmed on Tuesday that its 2004 earnings will be in line with analysts’ projections, on improved results in the coatings, adhesives, specialty polymers and inks segment. The Kingsport, Tennessee-based chemical company is expected to earn $1.73 a share on average.

Company shares gained 7 cents on Tuesday to $36.99.

Jones Apparel Group, Inc. (JNY: chart) said Tuesday it expects its acquisition of Kasper A.S.L. Ltd. to add 15 cents to the 2004 earnings and $415 million to $435 million to its 2004 revenue outlook. The Bristol, Pennsylvania-based designer and retailer now sees earnings in the range of $2.40 to $2.65 a share, on revenue of between $4.41 billion and $4.43 billion.

The stock plunged 0.71% to $35.05 at market close Tuesday.
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