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



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Navistar International Corp. (NAV) 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), 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) 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), 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) 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) 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) 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) 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) 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) 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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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites.
Market data: BATS Exchange. Inc.

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